The Finance Minister, Taiwo Oyedele, has provided a detailed update on the federal government’s economic reforms following President Bola Tinubu’s directive for greater transparency.
Speaking at a press briefing in Abuja, Oyedele revealed that the removal of the fuel subsidy generated ₦15.8 trillion for the Federation Account between June 2023 and December 2025. Out of this amount, the federal government received ₦5.4 trillion, while states and local governments shared ₦10.4 trillion.
He explained that despite generating additional resources of about ₦20.4 trillion during the period, the government still borrowed ₦11.9 trillion. According to him, this figure would have been much higher without the fiscal space created by the reforms.
Oyedele highlighted some of the benefits of the reforms, noting that no state is currently unable to pay salaries, unlike in May 2023 when 27 states struggled. He added that the gap between the official and parallel market exchange rates has narrowed significantly from over 60 percent to under 5 percent. Foreign reserves have also risen to $52.5 billion from around $35 billion, while the stock market capitalization has grown from ₦31 trillion to about ₦150 trillion.
The minister, however, acknowledged the challenges, including the rise in petrol prices from around ₦185 to between ₦1,100 and ₦1,400 per litre, and the increase in the Monetary Policy Rate from 18.5 percent to 26.5 percent. He maintained that without the reforms, the situation could have been far worse, with petrol likely trading above ₦3,000 on the black market and more states struggling to pay salaries.
Former Vice President Atiku Abubakar has, however, called for a full reconciliation of nearly ₦30 trillion in Federation revenues, deductions, savings, and transfers, insisting that the government must publish a detailed breakdown of how the funds were managed.
