15.8tn Subsidy Savings: Analyst Calls for Restructuring, Lower Cost of Governance

Analyst has questioned the impact of the Federal Government’s reported ₦15.8 trillion savings from the removal of petrol subsidy, arguing that increased government revenues and allocations have yet to translate into significant improvements in the living conditions of Nigerians.

The discussion followed the government’s disclosure that about ₦15.8 trillion was saved between June 2023 and December 2025 following the removal of the petrol subsidy. Of the amount, about ₦5.4 trillion went to the Federal Government, while ₦10.4 trillion was distributed to the states.

The analyst said the figures must be assessed against the rising cost of living, noting that petrol prices have moved from the sub-₦200 levels Nigerians were accustomed to under previous administrations to around or above ₦1,000 per litre in many parts of the country.

He argued that while the government maintains that the subsidy regime was financially unsustainable and had created a huge fiscal burden, Nigerians should also be told how the savings have been deployed.

According to him, the removal of subsidy may have been necessary, but the key issue is whether the resources released by the reform are being converted into better infrastructure, cheaper transportation, improved electricity, healthcare, education and stronger productive capacity.

The analyst also questioned the continued reliance on borrowing, arguing that successive administrations have followed broadly similar borrowing trajectories.

He said the government could still mitigate the consequences of the subsidy removal by directing substantial resources towards CNG-powered public transportation, agriculture, electricity and new refinery capacity, rather than relying solely on savings recorded on government balance sheets.

He also opposed what he described as excessive spending on obsolete refinery infrastructure, arguing that Nigeria should focus on developing modern and efficient refining capacity.