The Federal Government says reforms involving the removal of petrol subsidy and the unification of the foreign exchange market generated N15.8tn in additional resources for the Federation between June 2023 and December 2025.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the funds did not appear as a separate line item in the Federation Account because the gains were reflected through higher revenue collections.
According to Oyedele, the removal of subsidies and exchange rate reforms increased the naira value of revenues collected from sources such as Customs duties and petroleum taxes.
He explained that the foreign exchange reform also eliminated what he described as an implicit exchange-rate subsidy that had benefited rent-seekers rather than ordinary Nigerians and productive businesses.
The minister’s explanation addresses a long-running debate over what happened to savings generated after petrol subsidy removal in 2023.
