Fuel Subsidy Savings Can’t Meet Nigeria’s Development Needs – Oyedele

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has stated that the savings from the removal of subsidies on fuel since 2023 are insufficient to meet Nigeria’s economic needs.

He stressed the need for Nigeria to embrace comprehensive tax reforms to reposition the economy for sustainable growth.

Oyedele stated this on Wednesday at a one-day capacity-building training on the Nigeria Tax Act (2025) for members of the State House Press Corps in Abuja.

He stated that the country’s overall yearly budgetary outlay, which includes the federal government, 36 states, the Federal Capital Territory (FCT), and all 774 local government units, is less than $50 billion. He argued that the figure is insufficient for a country of more than 200 million people.

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He pointed out that even if corruption and waste are completely removed, the disposable public resources are not enough to transform Nigeria.

According to him, “Subsidy savings alone cannot deliver the level of infrastructure and services required. Our fiscal space is simply too small.”

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He claimed that because of the Nigerian National Petroleum Company Limited (NNPCL), which not only refused to send money but also pledged future crude production as collateral to cover the cost of gasoline imports, the subsidy system had left the federation on the verge of disintegration.

The Federal Government had said the removal of subsidies on fuel led to an increase in revenue allocations to states and local government areas across the country.

In July, the Federal Accounts Allocation Committee recently announced that a total of N2.001 trillion was disbursed to the Federal Government, State Governments, and Local Government Councils as revenue generated in July 2025. This is a significant increase from N1.818 trillion disbursed to the three tiers of government as revenue generated in June 2025.

However, Oyedele said the country needs to embrace comprehensive fiscal reforms to broaden the revenue base for sustainable economic growth.