JUST IN: FG Details N15.8tn Savings From Fuel Subsidy Removal In 3 Years

The *Bola Ahmed Tinubu administration* has released a breakdown of *N15.8 trillion* in savings from fuel subsidy removal and gains from other reforms over the last three years.

The Minister of Finance, *Taiwo Oyedele*, disclosed this at a press conference monitored by MOUTHPIECE NGR on Wednesday.

According to Oyedele, the reforms resulted in N15.8 trillion in savings that accrued to the Federation Account.

He noted that the savings from fuel subsidy removal were shared among the Federal Government, states and local governments.

*Breakdown of Subsidy Savings:*

– *Federal Government*: N5.43 trillion

– *States*: N6.52 trillion

– *Local Governments*: N3.88 trillion

Oyedele explained that the reforms also generated *N3.12 trillion* in other incremental revenues and *N11.85 trillion* in incremental borrowing.

As a result, the Federal Government had approximately *N20.4 trillion* in incremental resources during the period under review.

However, he noted that additional expenditures incurred by the government during the same period amounted to approximately *N30.64 trillion*.

“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.

He added that of the N30.64 trillion in expenditures:

– *N9.39 trillion* was spent on wage adjustments

– *N9.37 trillion* on external debt servicing

– *N6.47 trillion* on infrastructure

– *N3.14 trillion* on electricity subsidies

Recall that in *May and June 2023*, President Tinubu announced the removal of fuel subsidy and the liberalisation of the naira. The policies led to significant increases in fuel prices and fluctuations in the value of the naira.