The removal of the fuel subsidy is one of the major economic reform measures undertaken by President Bola Ahmed Tinubu's administration since it came to power in 2023. Despite the hardship the policy has caused, a new report by Nigeria's Reform Scorecard shows that it has generated a significant boost in financial resources for Nigeria.
Between June 2023 and December 2025, ₦15.8 trillion was saved in funds that were previously being spent on fuel subsidies. From this amount, ₦10.4 trillion was shared with state and local governments, while ₦5.4 trillion went to the Federal Government.
This increase in funds has given the government more capacity to finance critical national needs. At the federal level, the additional resources have helped fund salary increases and allowances, service debts, and invest in major infrastructure projects.
What is most important is that the funds generated have not remained just figures on paper. A portion has been used to support the new minimum wage of ₦70,000, infrastructure projects, social welfare programs, and other initiatives that affect the lives of Nigerians.
Certainly, the removal of the fuel subsidy has come with a cost that Nigerians have felt deeply. But the goal of the reform is to redirect government funds from an unsustainable system toward projects that will benefit the country in the long term. The ₦15.8 trillion in savings is among the indicators that show the scale of the transformation this reform has brought to Nigeria's fiscal system.