By Mariam Abeeb
The Federal Government has said economic reforms implemented over the past three years have mobilised N15.8 trillion in savings from subsidy reforms, while strengthening public finances and helping to avert a broader economic crisis.
This was disclosed by the Minister of Finance and Coordinating Minister of econominoy, Taiwo Oyedele while presenting ” Nigeria’s Reform Scorecard: The Benefits, Costs and Harms prevented at a press conference in Abuja.
According to the minister, the reforms, undertaken by the administration of President Bola Ahmed Tinubu include the removal of the fuel subsidy and the unification of the foreign exchange market.
According to the Nigeria Reform Scorecard presented by the government, the measures have produced significant economic adjustments, while also imposing substantial costs on households and businesses.
He noted that of the N15.8 trillion in subsidy savings generated between June 2023 and December 2025, N5.4 trillion accrued to the Federal Government, while N10.4 trillion went to states and local governments through the Federation Account.
The Federal Government also recorded N3.1 trillion in incremental independent revenue and borrowed N11.9 trillion, bringing its total incremental resources to N20.4 trillion during the period under review.
However, the government said incremental federal expenditure reached N30.64 trillion, with the balance financed from the existing revenue base.
He said that wage adjustments accounted for N9.3 trillion of the additional expenditure, while N9.37 trillion was spent on external debt servicing and N6.5 trillion on strategic infrastructure.
The presentation said the reforms were designed to address long-standing weaknesses, including distortions and corruption associated with the fuel subsidy regime and the foreign exchange market.
The Finance Minister said the measures had also contributed to improvements in government finances and external stability.
The number of states defaulting on salary and pension payments reportedly fell from 27 to zero, while the premium between the official exchange rate and the parallel market declined from more than 60 per cent to below five per cent.
The government further said the reforms helped prevent potential economic disruptions, including fiscal bankruptcy and shortages of refined petroleum products.
The reform scorecard assesses 25 indicators across five thematic areas: fiscal sustainability, external stability, investment climate, social impact, and growth and productivity.
It compares conditions before the reforms with current outcomes and estimates what Nigeria’s position might have been without the measures.
Despite the reported gains, the government acknowledged significant pressures on households. The monetary policy rate increased from 18.5 per cent to 26.5 per cent, while petrol prices rose sharply following the removal of the subsidy.
Food inflation has also remained a major concern, although the presentation noted that food-price pressures had eased.
The government said headline inflation declined from 22.41 per cent to 15.91 per cent, while gross foreign reserves increased to $52.5 billion.
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