The Federal Government has explained how resources generated from the removal of petrol subsidy and foreign exchange reforms were distributed and spent between June 2023 and December 2025.

🇳🇬 Here's What Happened

According to the Federal Ministry of Finance’s Nigeria Reform Scorecard presented on Wednesday, the reforms generated N15.8tn in subsidy savings for the Federation during the period.

However, the entire N15.8tn did not accrue to the Federal Government.

The ministry’s presentation showed that the N15.8tn was distributed among the three tiers of government through the statutory allocation system.

📌 Key Details

The Federal Government received N5.4tn, representing 34 per cent of the amount.

States received N6.5tn, or 41 per cent, while local governments received N3.9tn, representing 24 per cent.

This means the Federal Government’s share of the N15.8tn was N5.4tn, while N10.4tn went to states and local governments.

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, explained that the subsidy savings did not appear in the Federation Account as a separate item labelled “subsidy savings.”

“Between June 2023 and December 2025, subsidy savings mobilised a sum of N15.8tn in resources for the Federation,” Oyedele said.

He explained that the effect of the reforms was reflected through increased revenue collections.

📰 Source: Punch Nigeria