The Federal Government has provided a breakdown of the N15.8 trillion saved from the removal of fuel subsidy and other economic reforms implemented under President Bola Tinubu over the past three years.
The Minister of Finance, Taiwo Oyedele, disclosed the figures at a press conference on Wednesday.
Oyedele said the N15.8 trillion savings from fuel subsidy removal accrued to the Federation Account and was shared among the three tiers of government.
He said the Federal Government received N5.43 trillion, states got N6.52 trillion, while local governments received N3.88 trillion.
The minister added that the reforms generated an additional N3.12 trillion in revenue, while the government also secured N11.85 trillion through additional borrowing.
According to him, these sources provided the Federal Government with about N20.4 trillion in additional resources during the period under review.
Oyedele, however, said the government incurred additional expenditure of about N30.64 trillion within the same period.
He explained that the removal of fuel subsidy did not create a single pool of funds available for spending by the Federal Government, but rather reduced the fiscal burden and the amount of additional borrowing that would have been required.
The minister said N9.39 trillion of the additional expenditure went to wage adjustments, while N9.37 trillion was used for servicing external debt.
He added that N6.47 trillion was spent on infrastructure and N3.14 trillion on electricity subsidies.
President Tinubu announced the removal of fuel subsidy in May 2023, followed by the liberalisation of the foreign exchange market, reforms that triggered significant increases in fuel prices and fluctuations in the value of the naira.
