The President Bola Ahmed Tinubu-led administration has provided a detailed breakdown of how the Federal Government deployed the N30.64 trillion in additional expenditures incurred between June 2023 and December 2025, following the removal of fuel subsidy and other economic reforms.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this at a press conference monitored by Nigerian Newssphere on Wednesday.
Oyedele said the Federal Government recorded approximately N20.4 trillion in incremental resources during the period under review, comprising savings from fuel subsidy removal, other incremental revenues and additional borrowing.
According to him, the N20.4 trillion included N15.8 trillion in savings from fuel subsidy removal that accrued to the Federation Account.
He explained that the subsidy removal savings were shared among the three tiers of government, with the Federal Government receiving N5.43 trillion, states N6.52 trillion and local governments N3.88 trillion.
The minister added that the reforms generated another N3.12 trillion in incremental revenues, while the government recorded N11.85 trillion in incremental borrowing.
However, Oyedele said the additional resources were outweighed by expenditures incurred by the government during the same period, which amounted to approximately N30.64 trillion.
He explained that the figures showed that the removal of fuel subsidy did not create a single pool of cash available to the Federal Government but rather reduced the fiscal burden and the amount of additional borrowing that would otherwise have been required.
“The Federal Government had approximately N20.4 trillion in incremental resources.
“Over the same period, additional expenditures amounted to approximately N30.64 trillion. Subsidy removal therefore did not create one large pool of cash available to the Federal Government. It reduced a major fiscal burden and the amount of additional borrowing that would otherwise have been required,” he stated.
Giving a breakdown of the N30.64 trillion additional expenditure, Oyedele said N9.39 trillion was spent on wage adjustments, N9.37 trillion on external debt servicing, N6.47 trillion on infrastructure and N3.14 trillion on electricity subsidies.
The figures provide a clearer picture of how the government says the financial gains from subsidy removal and other reforms were absorbed by higher spending requirements between June 2023 and December 2025.
