Subsidy Savings: NECA challenges States, Local Govt to account for ₦10.4tn received

The Nigeria Employers’ Consultative Association (NECA) has challenged state and local governments to account for the ₦10.4 trillion distributed to them from resources generated following the removal of the petrol subsidy.

Adewale-Smatt Oyerinde, Director-General of NECA,  made the call in an interview on Channels Television’s Sunrise Daily on Thursday following the disclosure by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that the removal of the petrol subsidy mobilised ₦15.8 trillion for the Federation between June 2023 and December 2025.

Oyedele, on Wednesday, revealed that the Federal Government received ₦5.4 trillion of the amount, while ₦10.4 trillion was shared among state and local governments through the Federation Account.

But the NECA DG said the disclosure had placed an obligation on state governments, particularly their commissioners for finance, to explain how the funds received had been utilised.

Oyerinde likened the need for public accountability to the way private businesses report their financial performance to shareholders.

“We believe strongly that as private businesses, at the end of the year you audit your accounts, you present your scorecard to your shareholders to gauge what we have done. The Minister of Finance has led the way now, and the states also should follow,” he said.

Oyerinde commended the Federal Government for allowing the Minister of Finance to publicly provide details of the government’s finances, describing the move as a step towards greater transparency. He said the level of detail provided by Oyedele would enable citizens and other stakeholders to scrutinise government spending better.

According to him, greater disclosure would also make it easier for citizens to engage state and local governments constructively on how public funds were being used.

“I also put citizens, and I must say this, citizens are also in a good position now to engage constructively, engage the state governments constructively, and also engage local governments constructively, because that is where development should actually start,” Oyerinde said.

N15.8tn Subsidy Savings

Oyedele had disclosed that the removal of the petrol subsidy generated N15.8 trillion in resources for the Federation between June 2023 and December 2025.

He clarified that the amount did not appear as a separate credit to the Federation Account labelled “subsidy savings” but was reflected in the resources available to the three tiers of government.

He explained that the Federal Government received ₦5.4 trillion, while ₦10.4 trillion went to state and local governments through the Federation Account.

Oyedele also said the Federal Government generated ₦3.1 trillion in additional independent revenue during the period, largely through remittances from government-owned entities and increased surpluses from government agencies.

The government also borrowed ₦11.9 trillion between June 2023 and December 2025, bringing the Federal Government’s incremental resources from additional revenue and borrowing to ₦20.4 trillion.

However, Oyedele said incremental expenditure during the period stood at ₦30.64 trillion.

The minister identified the removal of petrol subsidy and the unification of the foreign exchange market as major reforms introduced by the President Bola Tinubu administration to address longstanding economic distortions and ease pressure on government finances. 

President Tinubu announced the removal of the petrol subsidy on May 29, 2023, during his inauguration, declaring that “subsidy is gone”.

The policy triggered a sharp increase in petrol prices and contributed to higher transportation, logistics and production costs, worsening the cost-of-living pressures faced by households and businesses.

The Federal Government has continued to defend its reform as necessary to reduce fiscal pressure and redirect public resources towards other priorities, while introducing measures including wage adjustments, agricultural support and the expansion of Compressed Natural Gas initiatives to cushion its impact.

Author Profile

Editor

Latest entries

• NewsSeptember 23, 2026Court stops INEC from accepting NDC candidate for Imo East
• NewsSeptember 23, 2026Funding Ibadan Airport Upgrade: Makinde refutes Wike’s ₦50bn claim
• NewsSeptember 22, 2026Shettima Tells Africa: Stop Exporting Raw Minerals, Build Industries
• NewsSeptember 21, 2026Ex-Kogi gov candidate mourns Ibrahim Idris