The Nigeria Employers’ Consultative Association (NECA) has called on state and local governments to provide a clear account of the ₦10.4 trillion they received from resources generated following the removal of the petrol subsidy.
The call followed the disclosure by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that the subsidy removal generated ₦15.8 trillion in resources for the Federation between June 2023 and December 2025.
Oyedele disclosed that the Federal Government received ₦5.4 trillion from the amount, while ₦10.4 trillion was distributed to state and local governments through the Federation Account.
Speaking on Channels Television’s Sunrise Daily on Thursday, NECA Director-General Adewale-Smatt Oyerinde said the disclosure should encourage state governments, particularly their commissioners for finance, to publicly explain how the funds were used.
“Absolutely. I think it should trickle down. The commissioners of finance in states, you come out and also say, this is how much we’ve received; this is how much we have spent,” he said.
Oyerinde compared public-sector accountability to the financial reporting practices of private businesses, where companies are expected to audit their accounts and present their performance to shareholders.
“We believe strongly that as private businesses, at the end of the year you audit your accounts, you present your scorecard to your shareholders to gauge what we have done. The Minister of Finance has led the way now, and the states also should follow,” he said.
He urged state governments to disclose the amounts they received, the challenges they encountered and how the funds were eventually spent.
“And so this is how much we have received. These are the constraints we face, and this is how we have expended this amount. I think we should move progressively towards transparency in government,” he said.
According to the NECA chief, making such information publicly available would give citizens a better understanding of how additional government resources are being managed.
Oyerinde praised the Federal Government for allowing the Finance Minister to publicly provide details about the country’s finances, describing the move as an important step towards greater transparency.
He said the information released by Oyedele would allow Nigerians and other stakeholders to examine government spending more closely and engage state and local authorities on development priorities.
“I also put citizens, and I must say this, citizens are also in a good position now to engage constructively, engage the state governments constructively, and also engage local governments constructively, because that is where development should actually start,” Oyerinde said.
How Much Did Petrol Subsidy Removal Generate?
Oyedele had disclosed that the removal of the petrol subsidy generated ₦15.8 trillion in resources for the Federation between June 2023 and December 2025.
The minister clarified that the amount did not appear as a separate entry in the Federation Account labelled “subsidy savings”. Instead, the savings were reflected in the resources available to the Federal Government, states and local governments.
“Between June 2023 and December 2025, subsidy savings mobilised the sum of ₦15.8 trillion in resources for the Federation,” the minister said.
He explained that ₦5.4 trillion went to the Federal Government, while ₦10.4 trillion was shared among state and local governments through the Federation Account.
Government Reports Additional Revenue and Borrowing
Beyond the subsidy savings, Oyedele said the Federal Government generated ₦3.1 trillion in additional independent revenue during the period.
He attributed much of the additional revenue to remittances from government-owned entities and increased surpluses generated by government agencies.
The Federal Government also borrowed ₦11.9 trillion between June 2023 and December 2025.
Together, the additional revenue and borrowing increased the Federal Government’s incremental resources during the period to ₦20.4 trillion.
However, Oyedele said incremental expenditure during the same period reached ₦30.64 trillion.
Subsidy Removal Remains A Major Economic Reform
The Finance Minister identified the removal of the petrol subsidy and the unification of the foreign exchange market as two of the major economic reforms introduced by President Bola Tinubu’s administration.
The reforms were designed to address longstanding economic distortions and reduce pressure on government finances.
President Tinubu announced the removal of the petrol subsidy during his inauguration on May 29, 2023, declaring that “subsidy is gone”.
How Subsidy Removal Affected Nigerians
The policy immediately triggered a significant increase in petrol prices, with the resulting rise in transportation, logistics and production costs adding to the financial pressure on households and businesses.
The Federal Government has maintained that ending the subsidy was necessary to reduce the burden on public finances and free up resources for other priorities.
Since then, the government has introduced various measures aimed at cushioning the impact of the policy, including wage adjustments, agricultural support programmes and the expansion of Compressed Natural Gas initiatives.
The latest call from NECA places renewed attention on how the resources generated from the subsidy reform have been distributed and spent, particularly at the state and local government levels.
Discover more from LN247
Subscribe to get the latest posts sent to your email.
