NewStats: 3,265,489 , 8,186,922 topics. Date: Sunday, 15 June 2025 at 09:34 AM y1k38

The Federal Government has revealed that the elimination of the petrol subsidy under President Bola Tinubu has resulted in savings of over $84 billion, which are now being channelled into the construction and rehabilitation of 40 key road projects across the country over the past two years.

This was disclosed in a policy brief released by the National Orientation Agency (NOA), titled “Two Years Later: Key Benefits of Subsidy Removal,” and made available to journalists over the weekend in Abuja.

The report, which reviewed the outcomes of the subsidy removal since May 29, 2023, noted that the policy averted a looming economic crisis.

It[b] also enabled the Tinubu istration to clear long-standing financial liabilities, increase capital investments, and the financial stability of state governments.
[/b]

The report noted that for decades—especially since the return to democratic rule—the oil subsidy regime posed a major challenge for the Federal Government.

Efforts by successive istrations to address the issue repeatedly failed, even as the economy continued to suffer significant losses. By 2015, public sentiment had shifted, with many Nigerians agreeing that the subsidy system had outlived its usefulness.

This became even more evident when the subsidy bill surged by 700 per cent in 2022, reaching an unprecedented N4 trillion.

From 2005 to 2022, successive governments spent a total of $84.39 billion on petrol subsidies.

These payments consumed more than 70 per cent of the Federal Government’s potential revenue, pushing the nation toward financial instability.

However, the report emphasised that with the decisive move to eliminate the subsidy, Nigeria is now saving billions and redirecting funds into tangible infrastructure development.


These efforts contributed to reducing the debt service-to-revenue ratio from 97 per cent in 2023 to 68 per cent in 2024.

Part of the recovered funds is being channeled into infrastructure on an unprecedented scale.

For the first time in decades, capital expenditure in the national budget exceeds recurrent spending.

The 2025 Appropriation Act allocates N23.96 trillion to capital projects, N10 trillion more than the N13.64 trillion earmarked for recurrent expenses.

To drive key infrastructure projects, the government has also launched the Renewed Hope Infrastructure Development Fund, seeded with N20 trillion.

The fund will flagship initiatives such as the Lagos-Calabar Coastal Highway, the East-West Road, the Mambilla Hydropower Project, the Enugu-Abakaliki-Ogoja Highway, the Sokoto-Badagry Super Highway, and the Eastern Rail Corridor.

The report emphasised this shift, noting that previous istrations typically devoted 70 per cent of their annual budgets to recurrent costs, leaving just 30 per cent for capital development.
In contrast, the Tinubu istration has reversed that trend, with capital spending now taking the lead.

The impact of these investments is already visible, the agency noted, with 40 road projects being commissioned across the country in celebration of President Tinubu’s second year in office.

Beyond infrastructure, the subsidy savings are being used to key sectors including education, housing, healthcare, digital innovation, and the solid minerals industry.

The government has established the Nigerian Education Loan Fund, which has been allocated over N203 billion to provide interest-free loans to students in tertiary institutions.
It has also expanded the use of compressed natural gas (CNG) as a cleaner and more affordable alternative to petrol, aimed at reducing transport costs.

While the government continues to emphasise the long-term benefits of ending fuel subsidies, critics argue that the policy has worsened inflation and increased hardship for many Nigerians.

Nevertheless, the NOA defended the reforms, describing them as essential for economic recovery and long-term development.

It likened the short-term hardship to the pain of childbirth, saying that while the process may be difficult, Nigerians are already beginning to experience the benefits.

https://businessday.ng/news/article/84bn-saved-from-petrol-subsidy-now-financing-40-key-roads-report/?amp

It's obvious, some Nigerians suffer from short memory. When Government was paying subsidy, Nigerians at the time still were complaining about everything, long queues, fuel scarcity, no roads, no light, lack of health care, frequent ASUU strikes, poor renumeration, low quality Education, inflation etc. And now that the subsidy fraud has ended and more money are going into FAAC, more funds being channeled into infrastructural projects, including welfare and increase in wages and salaries of workers. There's systematic and gradual improvement in the economic outlook. You may complain about rise in food, transport, electricity costs, though genuine, however, these are fundamentally as a result of human factor such as banditry/terrorism. The power sector was poorly privatized which subsequently needed Government intervention. The bottom line is the fact that economy is on the path of right direction, tough but promising.



PS - the ignorance here is many quoting me do not know that subsidy funds saved goes into federation where it's shared among the states and the federal government. Your Governors are collecting their share of it, Soludo was the latest to validate it. Go and ask your Governors how the increased FAAC is being used.



-Kiss the truth!

Nigerians hardly travel any longer. It is waybilling most are doing now. I wonder what the new roads will achieve. No security on older ones. No power to increase productive output. No health to keep people health and growing. Food is up up up these days and they are busy threatening and confusing us with huge unrealistic figures.

Chronic liars. You saved billions of dollars yet you borrowing recklessly

TimeManager:


It's obvious, some Nigerians suffer from short memory. When Government was paying subsidy, Nigerians at the time still were complaining about everything, long queues, fuel scarcity, no roads, no light, lack of health care, frequent ASUU strikes, poor renumeration, low quality Education, inflation etc. And now that the subsidy fraud has ended and more money are going into FAAC, more funds being channeled into infrastructural projects, including welfare and increase in wages and salaries of workers. There's systematic and gradual improvement in the economic outlook. You may complain about rise in food, transport, electricity costs, though genuine, however, these are fundamentally as a result of human factor such as banditry/terrorism. The power sector was poorly privatized which subsequently needed Government intervention. The bottom line is the fact that economy is on the path of right direction, tough but promising.


-Kiss the truth!

This comment honestly sounds like an attempt to gaslight Nigerians. Back then, people complained during the subsidy era because things were genuinely bad,fuel scarcity, poor healthcare, bad roads, ASUU strikes, and all. Now that the subsidy is gone and things have actually gotten worse for the average Nigerian, you’re blaming people for having short memories?

You talk about FAAC allocations and infrastructural projects, but what has really changed for the common man? Prices are through the roof, transport is unbearable, electricity is still unreliable, and people are struggling to survive daily. If more money is being spent, then where is the impact?

Blaming everything on banditry and a poorly privatized power sector is just lazy. This government knew it wanted to remove subsidy but did zero planning to cushion the effect. Now people are suffering and you're selling hope like it's enough to fill a pot.

Saying the economy is “tough but promising” means nothing to someone who can’t afford food or pay for transport. Nigerians are not asking for miracles,just honest leadership and policies that make life better, not worse.

This istration has a penchant for fabricating lies. Believe them at your peril.

olatade:







This comment honestly sounds like an attempt to gaslight Nigerians. Back then, people complained during the subsidy era because things were genuinely bad,fuel scarcity, poor healthcare, bad roads, ASUU strikes, and all. Now that the subsidy is gone and things have actually gotten worse for the average Nigerian, you’re blaming people for having short memories?

You talk about FAAC allocations and infrastructural projects, but what has really changed for the common man? Prices are through the roof, transport is unbearable, electricity is still unreliable, and people are struggling to survive daily. If more money is being spent, then where is the impact?

Blaming everything on banditry and a poorly privatized power sector is just lazy. This government knew it wanted to remove subsidy but did zero planning to cushion the effect. Now people are suffering and you're selling hope like it's enough to fill a pot.

Saying the economy is “tough but promising” means nothing to someone who can’t afford food or pay for transport. Nigerians are not asking for miracles,just honest leadership and policies that make life better, not worse.

Yu obviously lack adequate understanding about what a reform is. Back then, we were living a fake life, our GDP was padded, the country was in a mess, Nigeria was a dumping ground, local industries was killed, FG was borrowing to pay workers salaries, Military capacity was below standards, Reserves was being depleted, refineries were moribund YET Government was paying subsidy on fuel, electricity and on naira.. While the Government was borrowing to pay for these subsidies, trying to please the people, our reserves was being depleted to an all time low to an extent our credit ratings was negative and foreign creditors had stopped giving us loans. Our crude oil was sold in advance just to keep getting money for subsidy. The economy was bleeding but the masses were ignorant. They only cared about what they eat even if everything collapsed. Like I said earlier, the major factor aggravating the issue is purely a human factor caused by banditry/ terrorism which drives up food prices.
Currently, the financial health of the country is gradually improving which has trickled down to the states having more funds to execute projects and paying back their loans. Pessimists will only bother about what they see now and what they put in their stomach but progressives care more about the future and the overall wellbeing of the economy.


-Kiss the truth!

Lai Lai Mohammed
Lai Lai Mohammed
Lai Lai Mohammed



You saved 84 billion dollars and you are still borrowing.

TimeManager:

Yu obviously lack adequate understanding about what a reform is. Back then, we were living a fake life, our GDP was padded, the country was in a mess, Nigeria was a dumping ground, local industries was killed, FG was borrowing to pay workers salaries, Military capacity was below standards, Reserves was being depleted, refineries were moribund YET Government was paying subsidy on fuel, electricity and on naira.. While the Government was borrowing to pay for these subsidies, trying to please the people, our reserves was being depleted to an all time low to an extent our credit ratings was negative and foreign creditors had stopped giving us loans. Our crude oil was sold in advance just to keep getting money for subsidy. The economy was bleeding but the masses were ignorant. They only cared about what they eat even if everything collapsed. Like I said earlier, the major factor aggravating the issue is purely a human factor caused by banditry/ terrorism which drives up food prices.
Currently, the financial health of the country is gradually improving which has trickled down to the states having more funds to execute projects and paying back their loans. Pessimists will only bother about what they see now and what they put in their stomach but progressives care more about the future and the overall wellbeing of the economy.


-Kiss the truth!

With all due respect, what you said sounds more like an excuse than the truth. Real reforms are meant to make life better for people, not harder. You say things were bad before, but now things are even worse for ordinary Nigerians. Food is expensive, transport costs are high, insecurity has increased, and many people can’t meet their basic needs.

You talk about removing subsidies like it was the only solution, but the government is still spending money,just in a way that doesn't help the poor. If reforms don’t improve the lives of the people, then they’ve failed.

Also, blaming people for caring about what they eat is unfair. People are not selfish,they are simply struggling to survive. The truth is, the suffering is too much, and many leaders are not feeling the same pain. If states are getting more money but the citizens are still poor, then where is the progress?

This is not about being negative, it’s about facing reality. Nigerians are not asking for too much. They just want a country that works for everyone, not just a few.

Road projects are a massive embezzlement strategy in Nigeria... there's no executive that misses it during their tenure.........so saying fg took the common wealth of 200 millions Nigerians just to construct 40 roads is the robbery of the century ......

Y'all should stop this gaslighting statement that Nigerians were living fake lives...it's our common wealth generated from our oil revenue......every good country subsidize at least one form of services or goods for its people...e.g health, education, agric..

Formerly out govt doesn't do anything substantial other than the subsidy on fuel and FX.....now...we have nothing......y'all should stop making it taboo for Nigerians to spend/have small welfare from their own common wealth...

Corrupt government of fraud and propaganda. Tinubu is a thief.

Saved into pockets of government officials at the Federal, State and Local governments.

We can't still see any significant impact as FG is still borrowing massively.

You saved $84b, yet heading to foreign lands to secure another $25b in the next two years.

Where are the roads. Who told nairaland I need to write 40 words. Is Seun now dining with Wike?

It's a very big lie oooo. They have borrowed more than the subsidy costs itself

Why not use that 84 billion to clear our debt off


Please next money should be used to clear that 100 billion dollars debt.


If they can do it then i will believe that yes they are transparent.

Else na audio savings

Yet, we keep borrowing.... who is deceiving who pls?

Big, fat, shameless lie

I'm sure people have been embezzling the monies cos of we saved that much, WHY ARE WE BORROWING?!?!?

My own be say I just dey thank dangote for his refinery, of not for that refinery hmmm watin we for see at the mentioning of subsidy removal, our mouth for no fit talk am, we for Don dey buy one litre for 3k by now and if you ask them them go say na because no subsidy and we for still dey queue for line to buy fuel because once we try to complain about the price, them for create artificial scarcity to justify the increase in price. Crooks them

Les see the authentic evidence of the $84b. Buh how come it's not been said before now. Yet fresh loan don enter.

TimeManager:

Yu obviously lack adequate understanding about what a reform is. Back then, we were living a fake life, our GDP was padded, the country was in a mess, Nigeria was a dumping ground, local industries was killed, FG was borrowing to pay workers salaries, Military capacity was below standards, Reserves was being depleted, refineries were moribund YET Government was paying subsidy on fuel, electricity and on naira.. While the Government was borrowing to pay for these subsidies, trying to please the people, our reserves was being depleted to an all time low to an extent our credit ratings was negative and foreign creditors had stopped giving us loans. Our crude oil was sold in advance just to keep getting money for subsidy. The economy was bleeding but the masses were ignorant. They only cared about what they eat even if everything collapsed. Like I said earlier, the major factor aggravating the issue is purely a human factor caused by banditry/ terrorism which drives up food prices.
Currently, the financial health of the country is gradually improving which has trickled down to the states having more funds to execute projects and paying back their loans. Pessimists will only bother about what they see now and what they put in their stomach but progressives care more about the future and the overall wellbeing of the economy.


-Kiss the truth!

A fake life where I could actually afford to eat? A fake life where things were affordable? A fake life where I could travel securely by road? Stop trying so hard to convince people or to make people seem what's not there or believe in this istration. Nobody cares about economic well-being when they can't afford to eat. The roads are bad, no food, no light and I wonder what your government is trying to tell us. Advice your leaders to just do something useful for the citizens. Something they can actually see without all these long epistles. If they had fixed power, you wouldn't have to tell us about fuel queues and all. You would point to the fact that Tinubu has fixed power. We are tired of all this trying to show that they are doing something.

TimeManager:
It's obvious, some Nigerians suffer from short memory. When Government was paying subsidy, Nigerians at the time still were complaining about everything, long queues, fuel scarcity, no roads, no light, lack of health care, frequent ASUU strikes, poor renumeration, low quality Education, inflation etc. And now that the subsidy fraud has ended and more money are going into FAAC, more funds being channeled into infrastructural projects, including welfare and increase in wages and salaries of workers. There's systematic and gradual improvement in the economic outlook. You may complain about rise in food, transport, electricity costs, though genuine, however, these are fundamentally as a result of human factor such as banditry/terrorism. The power sector was poorly privatized which subsequently needed Government intervention. The bottom line is the fact that economy is on the path of right direction, tough but promising.


-Kiss the truth!

how is it on the right direction pls? Explain to us.. what are we enjoying with the subsidies they removed? Also, subsidies they should have removed since 2012, if not for sponsored protest by selfish interest of some people. Until Nigerians are wise, we will continue to have bad leaders because of our selfish interest.

Government of propaganda, by propagandists and for propagandists

Why are they still borrowing?

If exactly they are saving and diverting money to productive use

These people will lead people to anywhere. A whooping $84B and it has not reflected in anyway. They took $39B from it to renovate ICC. What an irony

Which of the roads?

Is the east west road part of the scope of work?

Jokers! All day everyday… What mess have Nigerians found themselves in?

Even Goodluck did his with SURE-P. Every government that assume power, are removing subsidies up and down! Fraudulent scheme