The Federal Government has recorded a staggering 500% increase in revenue savings in the first quarter of 2025, following the removal of petrol subsidies, according to a new report released by the National Orientation Agency (NOA) on Tuesday.
Titled “Two Years Later: Key Benefits of Subsidy Removal,” the report marks the 45th edition of NOA’s public enlightenment series The Explainer. It provides a detailed economic review of President Bola Ahmed Tinubu’s bold 2023 decision to eliminate fuel subsidies—an action the administration describes as one of Nigeria’s most consequential fiscal reforms in recent history.
According to the NOA, government savings rose from ₦154 billion to ₦836 billion in the first quarter alone—empowering the Nigerian National Petroleum Company Limited (NNPCL) to remit significantly more into the Federation Account Allocation Committee (FAAC).
“This has improved liquidity to both federal and state governments,” the agency stated, adding that FAAC allocations to states hit a record ₦15.26 trillion in 2024, allowing consistent payment of salaries and the settlement of ₦1.85 trillion in subnational debts.
Between 2005 and 2022, Nigeria reportedly spent over $84 billion on petrol subsidies. In 2022 alone, the subsidy budget skyrocketed to ₦4 trillion, growing by 700%. By 2023, a whopping 97% of national revenue was being used to service debt.
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“The removal of the subsidy was not just timely, it was essential,” the NOA stressed.
The report also highlighted new investments made possible by the reallocated funds, including:
A ₦20 trillion National Infrastructure Fund
₦54 billion disbursed in student loans through NELFUND
₦1.5 trillion committed to the agriculture sector
₦1 trillion invested in the solid minerals industry
A nationwide rollout of Compressed Natural Gas (CNG) buses for public transport.
The NOA says these interventions are beginning to reshape the nation’s economic narrative, with emphasis now placed on fiscal discipline, infrastructure renewal, and inclusive development.