Subsidy Reform: FG Promises Nigerians Tangible Benefits From Gains

The federal government has assured Nigerians that the gains from the removal of fuel subsidy and other economic reforms under President Bola Ahmed Tinubu will increasingly translate into improved infrastructure, security, human capital development, social protection and better living conditions.

The Minister of Information and National Orientation, Mohammed Idris, gave the assurance on Wednesday in Abuja while presenting the Federal Government’s “Nigeria’s Reform Scorecard: The Benefits, Costs and Harms Prevented.”

The scorecard outlines the resources generated through the removal of fuel subsidy and the unification of the foreign exchange market, as well as the broader impact of the reforms on the Nigerian economy.

Idris described the removal of fuel subsidy as one of the most significant and difficult economic decisions taken by the Tinubu administration, acknowledging that the policy had imposed considerable costs and adjustments on households, businesses and communities.

He, however, maintained that the reforms were necessary to redirect resources previously committed to what he described as an unsustainable subsidy regime towards investments capable of delivering greater and more sustainable value to Nigerians.

“Citizens have a right to know what resources have been freed up, what these resources mean for the Federation, and how the benefits of reform are being translated into tangible improvements in their lives,” Idris said.

He said the government’s responsibility extended beyond announcing policies to explaining their implications, accounting for their outcomes and demonstrating how difficult decisions were laying the foundation for a stronger and more sustainable economy.

Idris commended the Minister of Finance and Coordinating Minister of the Economy, Dr Taiwo Oyedele, and the economic management team for compiling the reform scorecard and providing the data and methodology behind the assessment.

Presenting the scorecard, Oyedele said the exercise was not designed to declare victory but to provide Nigerians with an honest assessment of the costs, benefits and harms prevented by the reforms.

He disclosed that between June 2023 and December 2025, subsidy savings mobilised N15.8 trillion for the Federation.

According to him, N5.4 trillion accrued to the federal government, while N10.4 trillion was shared among state and local governments.

Oyedele further disclosed that the federal government generated N3.1 trillion in incremental independent revenue and N11.9 trillion in incremental borrowing, bringing total incremental federal government resources to N20.4 trillion.

He said incremental expenditure during the period stood at N30.64 trillion.

“We are not here to pretend these reforms were painless. We are here to show you, honestly and with the numbers, what they cost, the benefits they delivered, and the harm they prevented,” Oyedele said.

The finance minister said the reforms had contributed to improvements in key macroeconomic indicators, including inflation, foreign reserves, market capitalisation and real GDP growth.

He said headline inflation had eased to 15.91 per cent as of June 2026, while gross foreign reserves stood at $52.5 billion and real GDP growth had strengthened to 3.89 per cent.

Oyedele also cited Nigeria’s improved standing in the international financial system, including a sovereign credit rating upgrade by S&P Global and the country’s exit from international anti-money laundering deficiency lists.

However, he acknowledged that the reform process remained a work in progress, particularly regarding household welfare and poverty reduction.

He said the next phase of the government’s economic programme would focus increasingly on ensuring that improvements in macroeconomic indicators translate into tangible benefits for ordinary Nigerians.

The Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, said the reforms were necessary because the Tinubu administration inherited an economy with a low revenue-to-GDP ratio and limited fiscal capacity relative to Nigeria’s population and development needs.

Bagudu said the government was therefore compelled to make difficult choices to address fiscal leakages, restore confidence in the economy and create greater fiscal room for investment in security, infrastructure, human capital development and grassroots development.

He said President Tinubu chose to confront the economic challenges he inherited rather than apportion blame, while drawing lessons from international experiences in implementing difficult reforms.

According to Bagudu, the reforms have also been accompanied by measures designed to cushion their impact on vulnerable Nigerians.

He said increased government revenue would strengthen the capacity of the government to fulfil its constitutional and developmental responsibilities.

The minister added that resources generated and mobilised through the reforms were being invested in projects and programmes across the six geopolitical zones.

He said improved connectivity, security, infrastructure and economic opportunities would ultimately benefit Nigerians across the country.

Idris, meanwhile, reaffirmed the administration’s commitment to continued engagement with Nigerians on the progress, challenges and outcomes of its economic reforms.

He said the government would continue working to ensure that gains from improved fiscal stability translate into better living conditions, greater economic opportunities and improved public services for citizens.