Where did Nigeria’s fuel subsidy savings go? FG reveals how funds were spent

The Federal Government has said savings generated from the removal of the fuel subsidy and reforms in the foreign exchange market have largely been used to meet rising debt-servicing obligations, fund higher workers’ wages, support the student loan scheme and cover other critical public expenditures.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this at the 7th African Emerging Markets Forum in Abuja, where he also promised that the government would soon publish a detailed breakdown of how the savings from the reforms have been utilised.

Oyedele acknowledged growing public concern over the fate of the funds, describing questions about the use of the subsidy savings as legitimate.

He said the government had a responsibility to provide Nigerians with a clear explanation of how the resources generated by the reforms had been deployed.

According to the minister, the combined cost of the former petrol subsidy and what he described as an implicit subsidy in the foreign exchange system was equivalent to about five per cent of Nigeria’s Gross Domestic Product (GDP) before the reforms were introduced.

However, he explained that the money freed by the reforms was not left unused because the government faced higher financial obligations, including increased debt-servicing costs and rising public expenditure.

Oyedele said part of the savings was used to address the government’s Ways and Means obligations and finance spending that had previously been supported through monetary financing.

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He explained that before the reforms, the government relied partly on money creation to fund expenditure, but ending the practice meant that the government had to secure alternative financing to meet existing obligations.

According to him, the reforms contributed to higher inflation and interest rates, increasing the cost of government borrowing and debt servicing.

He said borrowing costs that were previously around eight per cent had risen to as much as 24 per cent, placing additional pressure on public finances.

“When you need to service debts, you do not debate whether you need to pay. You pay, and you pay on time,” Oyedele said.

The minister also said the increase in the national minimum wage from ₦30,000 to ₦70,000 had significantly raised the Federal Government’s wage bill.

He explained that the higher wage structure had nearly doubled the government’s personnel costs, making it one of the major areas where public spending had increased following the reforms.

Oyedele added that the government had expanded funding for the Nigerian Education Loan Fund (NELFUND), which provides tuition support and monthly upkeep allowances to eligible students.

According to him, the student loan programme has grown to cover more than 1.5 million students, increasing government expenditure on education and youth support.

He stressed that the primary objective of removing fuel and foreign exchange subsidies was not only to generate savings but also to eliminate economic distortions, reduce inefficiencies and address opportunities for abuse within the previous systems.

The Federal Government has maintained that the reforms were necessary to improve fiscal sustainability, reduce pressure on public finances and create a more transparent economic framework.

However, the reforms have also contributed to higher fuel, transportation and living costs, with many households and businesses continuing to experience pressure from inflation and reduced purchasing power.

The government’s planned publication of a detailed account is expected to provide greater clarity on the amount generated from the reforms, how the funds were allocated and the extent to which the resources were used for debt payments, wages, education and other public obligations.

The disclosure is also expected to address public concerns over whether the fiscal gains from the removal of the fuel subsidy have translated into improved public services, infrastructure, social protection and better living conditions.

An earlier assessment by the International Monetary Fund (IMF) noted that Nigeria’s economic reforms had helped improve macroeconomic stability, strengthen investor confidence and reduce some fiscal and monetary pressures. The IMF, however, also said poverty and food insecurity remained significant concerns, highlighting the need for stronger social protection and inclusive economic growth. (IMF)

Oyedele said the government would not measure the success of its economic reforms solely through headline GDP growth.

Instead, he said the government would focus on reducing multidimensional poverty, increasing real income per capita and narrowing income inequality.

He maintained that the long-term goal of the reforms was to build a more stable and sustainable economy while ensuring that economic growth leads to improved living standards for a broader section of the population.

The minister assured Nigerians that the detailed report on the use of the subsidy savings would be released in the coming days as part of the government’s commitment to transparency and public accountability. (reuters.com)

Where did Nigeria’s fuel subsidy savings go? FG reveals how funds were spent

Soyinka to Tinubu: Reopen Unresolved Killings, Assassination Cases Nationwide

• Nobel laureate dedicates 2026 lecture to victims of state violence, warns that collective silence fuels impunity, as he demands justice for Deborah Samuel, Mene Ogidi, and others.

Nobel laureate Prof. Wole Soyinka has called on President Bola Ahmed Tinubu to fulfil his 2023 campaign promise by revisiting unresolved cases of assassinations and extra-judicial killings across Nigeria. Soyinka made the appeal on Friday at the 28th Wole Soyinka Lecture Series organised by the National Association of Seadogs (Pyrates Confraternity) in Port Harcourt, Rivers State. The lecture, themed “Reclaiming the Nigerian State through Accountability, Justice and Civic Courage,” was chaired by former Managing Director of the Niger Delta Development Commission, Chief Timi Alaibe.

Soyinka dedicated the 2026 edition of the annual lecture to victims of extra-judicial killings and state excesses, declaring that Nigeria’s greatest failure is not only the murders but the collective silence that allows perpetrators to escape justice. “Through these remarks, I pay honour to those who have lost their lives because of the deficiencies of the state which have led to the devaluation of human life,” Soyinka said. He specifically honoured victims of some of Nigeria’s most disturbing cases of violence, including 18 Ughelli residents allegedly killed by state agencies, a young man reportedly shot dead by a policeman in broad daylight, Deborah Samuel, who was lynched and burnt alive by a mob in Sokoto State in 2022, and Mene Ogidi, a 28-year-old man allegedly shot dead by a police officer in Delta State. “Today is dedicated to the 18 Ughelli residents butchered by state agencies for no reason at all, simply for minding their own business; to the young man shot dead in broad daylight by a policeman while under suspicion; and to Deborah, the youth hunted through the city by her own classmates, necklaced and set ablaze,” he said. Soyinka also honoured the six police officers killed in Apo, Abuja, describing the lecture as a reminder of the many unresolved injustices in the country.

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Soyinka expressed concern that one of Deborah Samuel’s alleged killers reportedly displayed the matchstick used to set her ablaze publicly without facing justice years after the incident. He contrasted that with the swift arrest of the police officer accused of killing Mene Ogidi, saying the differing responses reflected selective justice. “It’s dedicated to individuals, the youths, like Deborah, who was killed, who was butchered by her own classmates, hunted through the city, necklaced and set on fire. But that is not the crime. That really is not the crime,” Soyinka said. “The crime is the silence of the rest of us, that such a thing is possible, and that the killers of that girl can actually go on television, hold up a match, and say this is the match with which I set her on fire. And there the system of justice fails us completely,” he added. He urged Nigerians to demand justice and ensure that alleged perpetrators of extra-judicial killings do not escape punishment.

Soyinka reminded Nigerians that President Tinubu, upon assuming office, requested files relating to unsolved assassinations and extra-judicial killings. “Watch with me so that we can force the government to bring up all the files. When there was a government retreat, you remember? The incoming president said, ‘I want all the files of all the unsolved assassinations, killings, extra-judicial killings.'” “What has happened to those files? I want you to join me in asking President Tinubu to say, ‘We want you to dig up those files. We want to know what happened, why it happened,'” Soyinka said. Soyinka warned that successive failures to prosecute those responsible for unlawful killings had emboldened criminals and weakened public confidence in the justice system. He described the persistent failure to secure justice for victims as one of the country’s gravest moral crises, insisting that silence in the face of brutality was itself a form of complicity.

Soyinka called on President Tinubu to end all forms of killings by state actors and ensure that those responsible for abuses are held accountable. He declared that human life has been dangerously devalued in Nigeria, adding that the inaction of citizens in the face of repeated human rights violations has emboldened those who abuse state power. The Nobel laureate dismissed critics who accuse him of provoking religious tensions whenever he speaks against injustice, insisting that defending human life transcends religious, ethnic, or political divides. “Sessions like that in Port Harcourt are vital, precisely, to remind Nigerians that the human unit is the least common denominator and the most important element of the community,” he said.

Delivering the keynote address, former Minister of Aviation Osita Chidoka argued that justice begins long before a matter reaches the courtroom. According to him, justice starts from the moment police officers determine whether complaints are investigated fairly or ignored because of influence, power, or social status. Highlighting the challenges confronting Nigeria’s justice and correctional systems, Chidoka disclosed that about 64 per cent of inmates in custodial centres—more than 50,000 Nigerians—are awaiting trial despite not being convicted of any offence. “Each of these 50,000 is a life in suspension, a job lost, a family destabilised, someone’s health failing. When the state causes that delay, and citizens pay for it in lost liberty, the delay is not inefficiency; it is a form of violence carried out by the state itself,” he said. He insisted that justice must apply equally to every Nigerian, regardless of political affiliation, ethnicity, religion, or social standing.

The case of Mene Ogidi, a 28-year-old man shot dead by a police officer in Delta State on April 26, 2026, has drawn widespread condemnation and renewed concerns over police brutality. According to police reports, Ogidi was handed over to ASP Nuhu Usman and his team after citizens arrested him for attempting to waybill a parcel containing a fabricated Beretta pistol and ammunition. Rather than following standard operational procedures, ASP Nuhu shot and killed the unarmed, already-apprehended suspect. The Nigeria Police Force has since recommended the immediate dismissal of ASP Nuhu Usman and other officers found culpable, with the Inspector-General approving the recommendation and forwarding it to the Police Service Commission for ratification. Upon completion of administrative procedures, the affected officers will be handed over to judicial authorities for prosecution. Investigators have also uncovered a gun-running syndicate linked to the firearm, with four suspected members of the Black Axe confraternity arrested in connection with the case.

Soyinka to Tinubu: Reopen Unresolved Killings, Assassination Cases Nationwide

Osun Guber: IGP Deploys New Election CP as INEC Identifies 11 Flashpoint LGAs

• CP Erale Samuel Etaifo takes over security operations for August 15 poll as former CP Gotan is redeployed to Force Headquarters amid neutrality concerns.

The Inspector-General of Police, IGP Olatunji Disu, has deployed a new Commissioner of Police in charge of Elections, CP Erale Samuel Etaifo, to Osun State ahead of the August 15 governorship election. The deployment comes as part of measures to strengthen security arrangements and ensure the neutrality of security agencies during the poll. In a statement signed by the Osun State Police Command Public Relations Officer, DSP Abiodun Ojelabi, on Thursday, July 30, 2026, the Police said the deployment reflects the Inspector-General’s commitment to neutrality, professionalism, and adherence to democratic principles throughout the election. CP Etaifo will oversee the entire security architecture for the poll and coordinate election security operations with other security agencies and stakeholders.

CP Etaifo’s deployment follows the redeployment of the former Osun State Commissioner of Police, CP Ibrahim Gotan, to the Force Headquarters in Abuja on special duty. His redeployment was conveyed in a police wireless message issued by the Force Secretariat in Abuja on Thursday and marked “Most Immediate,” with a directive for immediate implementation. The move comes after persistent calls from the state government and civil society organisations for Gotan’s removal over allegations of partisanship. The Accord Party had accused the police of orchestrating a campaign of intimidation against its members and top government officials ahead of the election. According to the party, about 100 Accord leaders, candidates, members, and supporters across the state have been arrested and detained by the police, with some reportedly moved to Abuja. However, a senior police source clarified that the redeployment was not linked to any specific allegation against CP Gotan and that he may be redeployed back to the state after the election. Sources familiar with the development also noted that Erale’s posting came shortly after his promotion to the rank of Commissioner of Police, having been decorated with his new rank on July 21.

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According to the Osun Command, CP Etaifo will ensure strict compliance with the Electoral Act, the Code of Conduct for Security Personnel on Electoral Duty, and other extant laws guiding the electoral process. The police assured residents that comprehensive security measures have been put in place across the state to protect lives, property, and critical electoral materials before, during, and after the election. All officers deployed for election duty have been directed to remain impartial, professional, and respectful of the rights of every citizen, irrespective of political affiliation. The Command also issued a strong warning to political actors and their supporters, stating that electoral violence, vote buying, voter intimidation, the spread of misinformation, and any other form of criminality will be met with the full weight of the law. Residents were urged to remain law-abiding, cooperate with security agencies, and report any suspicious activities through the Command’s emergency channels. The Nigeria Police Force reiterated its commitment to providing a level playing field for all political parties and ensuring that the will of the people prevails through a peaceful, credible, and transparent electoral process.

Meanwhile, the Chairman of the Independent National Electoral Commission, Professor Joash Amupitan, has reiterated that INEC has no preferred candidate for the election, assuring that the Commission will provide a level playing field for all candidates and parties. He urged residents to come out en masse and vote, assuring that adequate security will be provided. “The Independent National Electoral Commission has no preferred candidate, holds no political allegiance, and seeks no outcome other than the lawful choice of the electorate. Our sole loyalty is to the Constitution of the Federal Republic of Nigeria and the sovereign will of the Nigerian people,” Amupitan said at a stakeholders’ meeting in Osogbo. During a courtesy visit to the Ataoja of Osogbo, Amupitan declared that the next governor of Osun State would emerge through the ballot and not through violence. “We don’t want violence. And the blood of every Osun citizen is not worth to be shed, just for the purpose of election to the office of the governor,” he said. The INEC Chairman disclosed that the Commission had identified 11 Local Government Areas as potential flashpoints that would receive specialised, high-visibility security deployment. These include Atakumosa East, Atakumosa West, Boripe, Ede North, Ede South, Ife Central, Ifedayo, Ila, Osogbo, Ifelodun, and Oriade local government areas. “Security forces have been issued strict operational directives to neutralise thuggery, cult activities, and any attempt at ballot disruption, while maintaining absolute professional neutrality,” Amupitan stated.

According to INEC, the election will feature 2,339,233 registered voters spread across 30 Local Government Areas, 332 Registration Areas (Wards), and 3,763 Polling Units in the state. Fourteen political parties will participate in the contest. A total of 4,427 Bimodal Voter Accreditation System (BVAS) devices have been customised and deployed for the election, including 664 dedicated backup units representing a 15% operational reserve. All polling unit result sheets (Form EC8A) will be scanned and uploaded directly from the polling unit to the INEC Result Viewing Portal (IReV), guaranteeing public transparency from the moment voting closes. The Commission also announced that a statewide Mock Accreditation Exercise is scheduled for Saturday, August 1, 2026, across 12 selected Local Government Areas to test its preparedness ahead of the governorship election.

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