Nigeria reports N15.8 trillion in savings from petrol subsidy removal

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced that the removal of the petrol subsidy and the liberalization of the naira generated N15.8 trillion (approximately $11.76 billion) in savings for the federation between June 2023 and December 2025.

Oyedele clarified that these savings did not appear as a single line item labeled “subsidy savings” in the Federation Account. Instead, the funds were realized through increased revenue collections, such as higher customs duties and petroleum profit taxes, bolstered by the devaluation of the naira which increased the local currency value of dollar-denominated transactions.

Of the N15.8 trillion, the Federal Government received N5.4 trillion, while N10.4 trillion was distributed to state and local governments through the Federation Account Allocation Committee (FAAC) formula. To support expenditure, the federal government also generated N3.1 trillion in incremental independent revenue and took on N11.9 trillion in additional borrowing during this period.