President Bola Ahmed Tinubu has provided a detailed explanation on how the Federal Government of Nigeria is utilizing funds saved from the removal of petrol subsidy, stressing that the money is being channeled into infrastructure development, human capital investment, and economic reforms.

Speaking through the Minister of State for Finance, Nkiruka Uzoka-Anite, during the opening of the National Conference on Public Accounts and Fiscal Governance in Abuja, the President addressed growing concerns over the usage of the massive revenue increase.

• “Since petrol subsidy removal, we have redirected those funds into targeted interventions, expanding our social safety nets, improving public transportation, and financing critical infrastructure,” Tinubu stated.

From ₦900 Billion to ₦1.6 Trillion Monthly Allocation

According to the administration, monthly revenue shared by the federal, state, and local governments has skyrocketed — from an average of ₦900 billion under the Buhari administration to over ₦1.6 trillion since 2023, following Tinubu’s declaration that “fuel subsidy is gone.”

“In 2022 alone, Nigeria spent over ₦4 trillion on fuel subsidies — more than what we allocated to capital expenditure. This was fiscally unsustainable and unjust,” Tinubu emphasized.

He argued that the subsidy regime favored the wealthy, encouraged smuggling, and drained national resources with minimal benefits to the masses.

• Key Areas of Investment from Subsidy Savings
• Public infrastructure and transportation
• Social safety net programs
• Economic diversification into agriculture, manufacturing, digital services, and renewable energy
• Tax reform and informal sector integration
• Support for SMEs through the National Credit Guarantee Company
• Digitization of public finance systems

Tinubu highlighted ongoing reforms in tax collection, aiming to expand the tax base, reduce leakages, and simplify compliance for small and medium-sized enterprises (SMEs). The president added that the goal is to gradually reduce Nigeria’s overreliance on oil revenues and establish a more self-sustaining economy.

“We are laying the foundation for a resilient, diversified economy. These efforts are already generating jobs, encouraging innovation, and boosting national security,” he said.

Stronger Fiscal & Monetary Coordination

Tinubu also praised the Central Bank of Nigeria (CBN) for its role in stabilizing the naira and coordinating with fiscal authorities to reduce inflation, especially by addressing structural food supply challenges.

He noted that tools like IPPIS, GIFMIS, and the Open Treasury Portal are helping ensure transparency and accountability in public finance management.

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“We must move from opacity to openness, from suspicion to confidence. Public funds must be traceable, and public officers must be accountable,” Tinubu declared.

Legislative Leaders Demand Accountability

House Speaker Abbas Tajudeen, represented by Julius Ihonvbere, raised alarm over ₦300 billion in unrecovered public funds, describing the lack of enforcement on audit reports as unacceptable.

Senate President Godswill Akpabio, represented by Senator Abdul Ningi, urged the Public Accounts Committees (PACs) to enforce accountability and criticized government agencies for ignoring legislative summons.

• “Public Accounts Committees are not just legislative tools; they are constitutional bodies empowered to act as watchdogs of public funds,” Akpabio stated.

The Chairman of the Senate Committee on Public Accounts, Senator Aliyu Wadada, reaffirmed the 10th Senate’s commitment to open budgeting, prudent spending, and fiscal reforms.

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