The Federal Government has announced plans to publish a detailed report outlining savings realised from the removal of petrol and foreign exchange subsidies, following months of public demand for greater transparency over the use of the funds generated by the economic reforms.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Thursday at the 7th Africa Emerging Markets Forum in Abuja, stating that the report would provide Nigerians with a comprehensive breakdown of the savings and how the resources have been deployed to meet government obligations and support key economic interventions.
According to Oyedele, the publication is part of the Federal Government's commitment to accountability, stressing that Nigerians deserve to know how proceeds from one of the country's most significant fiscal reforms have been utilised.
"In a few days, you will see the detailed analysis because we believe that we owe a duty to explain what we do to the Nigerian people. That's what transparency looks like," he said.
The minister explained that while the reforms generated substantial fiscal savings, their primary objective was to eliminate long-standing distortions, curb corruption and restore greater discipline to Nigeria's public finances.
He noted that part of the resources realised from ending the subsidies had been used to settle existing financial obligations, including the servicing of government debt following the suspension of deficit financing through the Central Bank of Nigeria's Ways and Means facility.
"If you stop printing money, the spending doesn't disappear. You need to finance the money you were printing before. That was part of where the savings went," Oyedele said.
He added that rising borrowing costs have also increased government debt service obligations, with interest rates climbing from around eight per cent previously to as high as 24 per cent.
"Instead of paying eight per cent on our debt, we're paying as high as 24 per cent. When you need to service debts, you don't debate whether you need to pay. You pay, and you pay on time," he stated.
Oyedele further disclosed that part of the savings had supported the implementation of the new national minimum wage and expanded the government's social intervention programme, which now covers about 15 million vulnerable households. According to him, the programme has helped lift an estimated 7.5 million Nigerians out of extreme poverty.
He said the government is also developing measures to reduce the cost of capital without reintroducing subsidies, while complementing the Central Bank of Nigeria's monetary tightening efforts aimed at controlling inflation and supporting economic growth.
The minister estimated that the combined impact of the former fuel and foreign exchange subsidies accounted for about five per cent of Nigeria's Gross Domestic Product, describing the reforms as a necessary step towards creating a more efficient and investment-friendly economy.
Nigeria removed the petrol subsidy shortly after President Bola Tinubu assumed office in 2023, a decision widely regarded as one of the administration's most consequential economic reforms. Analysts estimate that ending the subsidy has saved between ₦4 trillion and ₦6 trillion annually, while monthly allocations from the Federation Account Allocation Committee have risen significantly compared to pre-reform levels.
The announcement comes as the government continues to defend its economic reforms amid concerns over rising living costs, with the planned publication expected to provide the clearest official account yet of how subsidy savings have been applied since the policy was introduced.