Breakdown on how Nigeria govment spend di N15.8 trillion-naira saved from fuel subsidy removal

Nigeria minister of finance Taiwo Oyedele don release breakdown on di money wey dem generate from di petrol subsidy removal.

Oyedele tok say dem generate N15.8 trillion from di subsidy between June 2023 and December 2025.

Di minister give di breakdown on Wednesday during one media conference on Nigeria reform scorecard from 2023 to 2026.

"Between June 2023 and December 2025, subsidy savings mobilise N15.8 trillion for di federation," Oyedele tok.

Di minister of finance tok say di federal govment collect N5.4 trillion from di N15.8 trillion, while states and local govment share N10.4 trillion.

Also, di federal govment generate additional N3.1 trillion from independent revenue, mainly from remittances from govment bodies.

Oyedele tok say di federal govment total resource wey di Tinubu administration get from subsidy savings, independent revenue, and borrowing amount to N20.4 trillion.

"All togeda, federal govment resource ova di period — subsidy savings, independent revenue, and borrowing — na N20.4 trillion," e tok.

Oyedele tok say dem borrow N11.9 trillion extra between June 2023 and December 2025.

"Pipo go tok say, you tok say you don pass your revenue, why you still dey borrow? Oyedele tok.

"Di additional borrowing wey federal government do for dat time, June 2023 to December 2025, na N11.9 trillion," e tok.

Di minister tok say federal govment don spend N30.64 trillion for extra expenses during di same period.

E explain say dem spend N9.39 trillion for wages for public workers and N9.37 trillion for external debt servicing, while dem spend N6.5 trillion for strategic infrastructure.

Oyedele tok say di wage adjustment expense pass wetin di federal govment save from subsidy removal.

"Di extra money wey federal govment dey spend for higher wages pass di total savings wey dem earn from subsidy removal," e tok.

Di minister tok say di increase for external debt servicing na mostly becos of di naira depreciation, becos di value of di debt remain for dollar but na naira dem dey use to pay.

"If we dey pay $1 million bifor for interest on foreign debt, na still di same $1 million, but instead of N460, e don turn N1,415 now," Oyedele tok.

"Na more naira we go need to pay. And I don tok dis bifor, wen you get debt service to pay, you no go fit negotiate, you no go fit delay, you go pay. Becos delay or default get consequences."

Di minister tok say di figures show say di reforms no come mainly to increase govment revenue, but to address corruption in "fuel subsidy and foreign exchange market wey dem dey manage artificially."

On May 29, 2023, president Bola Tinubu assume office and afta im take di oath of office tok say im go stop petrol subsidy wey dey favour di rich pass di poor.

"Subsidy no longer fit justify im ever-increasing costs in di wake of drying resources." Oga Tinubu tok.

E tok say under im administration, dem go re-channel di money from fuel subsidy into beta investment in public infrastructure, education, health care and jobs wey go materially improve di lives of millions.