FG to Publish Petrol Subsidy Savings Breakdown- Oyedele

The Federal Government will publish a petrol subsidy savings breakdown in the coming days, according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.

Oyedele said the move is aimed at addressing persistent questions from Nigerians about how the savings from the removal of petrol and foreign exchange subsidies have been spent.

He acknowledged that public concerns over the use of the funds are legitimate and said the government owes citizens a transparent account of its spending.

“Where has the money gone? I’ve heard this question so many times. And guess what? It’s a valid question.”

According to him, the detailed report will show how much was saved and where the money was allocated.

“In a few days, you will see the detailed analysis because we believe that we owe a duty to explain what we do to the Nigerian people. That’s what transparency looks like.”

Oyedele said a significant share of the savings has been used to finance obligations that were previously funded through Central Bank financing, service-raise public debt costs and implement the new national minimum wage.

He explained that before the reforms, part of government expenditure was financed through money creation, adding that ending that practice required alternative sources of funding.

“If you stop printing, the spending doesn’t disappear. You need to finance the money you were printing before. That was part of where the savings went.”

According to him, the combined cost of petrol and foreign exchange subsidies previously amounted to about 5 per cent of Nigeria’s Gross Domestic Product (GDP).

While the reforms created fiscal savings, he said their primary objective was to eliminate economic distortions, reduce inefficiencies and improve the management of public finances.

Beyond publishing the subsidy savings report, Oyedele disclosed that the Ministry of Finance is developing a framework to reduce the cost of capital without introducing new subsidies.

He said the initiative is expected to complement the Central Bank of Nigeria’s monetary policy and make financing more affordable for businesses.

The government has also strengthened coordination between fiscal and monetary authorities by aligning assumptions on inflation and other macroeconomic indicators before implementing new policy measures.

According to Oyedele, this approach is intended to reduce policy inconsistencies and improve economic decision-making.

Responding to concerns about the social impact of the reforms, Oyedele acknowledged that removing subsidies initially reduced household purchasing power.

However, he argued that the reforms were designed to reset the economy and create the foundation for stronger long-term income growth.

He also said preliminary government analysis indicates that the economic cost of excessive regulation, bureaucracy and policy inconsistency exceeds the combined revenue generated from value-added tax (VAT), company income tax (CIT) and personal income tax (PIT).

According to him, removing administrative bottlenecks could deliver greater economic benefits than introducing additional tax incentives.

Looking ahead, Oyedele said the Federal Government’s priorities remain improving revenue mobilisation, accelerating economic growth and maintaining fiscal discipline.

He added that work is also underway on a public data portal that will improve access to government economic data and promote greater transparency.