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.
