The Federal Government, through the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has stated that the removal of the petrol subsidy was critical in preventing Nigeria from falling into a far more severe fiscal crisis. Presenting the government’s “Nigeria Reform Scorecard,” officials disclosed that the discontinuation of the subsidy regime generated ₦15.8 trillion in savings between June 2023 and December 2025. Out of this total, ₦5.4 trillion accrued directly to the Federal Government, while ₦10.4 trillion was distributed among state and local governments.

According to the official account, these financial savings—combined with ₦3.1 trillion in independent revenues and ₦11.9 trillion raised via incremental borrowing—provided the government with vital resources to fund essential national priorities.

The funds helped cushion ₦30.64 trillion in increased expenditures, including ₦9.39 trillion allocated for public sector wage adjustments and minimum wage increases, ₦9.37 trillion spent on servicing external debt, and ₦6.5 trillion invested in critical infrastructure projects.

The report highlighted that without these economic interventions, the number of Nigerian states unable to pay civil servants’ salaries would have escalated from 27 in mid-2023 to at least 30 by 2026. Moreover, the administration emphasized that macroeconomic indicators have stabilized, noting an increase in real GDP growth to 3.89 percent, a fall in headline inflation to 15.91 percent, and a rise in gross foreign reserves to $52.5 billion.

While admitting that the decision imposed heavy financial burdens on citizens—evidenced by petrol prices soaring above ₦1,100 per litre and benchmark interest rates hitting 26.5 percent—the government maintained that the reform successfully dismantled corrupt market distortions and preserved the nation’s long-term economic stability.