Fuel subsidy: FG records N20.4tn extra resources, spends N30.6tn, says Oyedele

The Federal Government generated about N20.4tn in additional resources from fuel subsidy removal and other fiscal reforms over the last three years, but spent N30.64tn on wages, debt servicing, infrastructure and electricity subsidies, the Minister of Finance, Taiwo Oyedele, has disclosed.

Oyedele gave the figures on Wednesday at a press conference, where he explained how the government had deployed the resources generated from the reforms introduced by President Bola Tinubu’s administration.

According to him, the removal of fuel subsidy resulted in N15.8tn in savings that accrued to the Federation Account and were shared among the three tiers of government.

He said the Federal Government received N5.43tn, states got N6.52tn, while local governments received N3.88tn from the subsidy savings.

The minister explained that the reforms also generated N3.12tn in incremental revenues, while the Federal Government raised an additional N11.85tn through borrowing.

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These, he said, brought the Federal Government’s total incremental resources during the period to approximately N20.4tn.

Oyedele, however, stressed that the subsidy removal did not translate into N20.4tn of cash available solely to the Federal Government, noting that a significant portion of the resources was shared among the different tiers of government.

“The Federal Government had approximately N20.4tn in incremental resources.

“Over the same period, additional expenditures amounted to approximately N30.64tn. Subsidy removal therefore did not create one large pool of cash available to the Federal Government. It reduced a major fiscal burden and the amount of additional borrowing that would otherwise have been required,” he said.

Giving a breakdown of the additional expenditure, Oyedele said N9.39tn was spent on wage adjustments, while N9.37tn went into servicing external debt.

He added that N6.47tn was committed to infrastructure, while N3.14tn was spent on electricity subsidies.

The figures offer a clearer picture of the fiscal impact of the Tinubu administration’s decision to remove fuel subsidy, a policy announced in May 2023 shortly after the President assumed office.

The subsidy removal triggered a sharp increase in petrol prices, while the government’s subsequent liberalisation of the foreign exchange market also led to significant fluctuations in the value of the naira.

Oyedele’s explanation suggests that the savings from subsidy removal were used largely to ease fiscal pressures, support increased government spending and reduce the need for even higher borrowing, rather than providing the Federal Government with a single pool of funds for discretionary spending.

Fuel subsidy: FG records N20.4tn extra resources, spends N30.6tn, says Oyedele

Electric Vehicles: Six-point blueprint to drive mass adoption, by Metropolitan CEO 

Nigeria’s electric vehicle transition risks remaining trapped in a cycle of policy announcements unless government and industry move swiftly to turn existing incentives, infrastructure plans and regulations into a coordinated, bankable market, Metropolitan Electric Limited has warned.

The company’s Chief Executive Officer, Olugbenga Obadina, made the call at the 3rd Nigeria Auto Industry Summit, organised by the Nigeria Auto Journalists Association in conjunction with the National Automotive Design and Development Council in Lagos.

Obadina said Nigeria had reached a critical stage in its electric mobility journey, stressing that the immediate challenge was no longer the absence of policies but the failure to coordinate and execute them effectively across government agencies.

According to him, several building blocks for EV adoption are already in place, including the National Automotive Industry Development Plan 2023–2033, which targets a 30 per cent local EV production share and 40 per cent local content.

He also cited the zero-rating of VAT on EVs and semi-knocked-down assembly parts under the Nigeria Tax Act 2025 and the reported reduction of EV import duty from five per cent to zero under the 2026 Fiscal Policy Measures.

Other initiatives, he said, covered government EV procurement, charging infrastructure, standards, battery recycling and skills development.

However, Obadina warned that these measures would have limited impact if investors and operators continued to face uncertainty over tariffs, customs procedures, financing, charging permits and other regulatory requirements.

“The policy pieces are largely in place. What is needed now is to connect them, with coordination and execution across agencies,” he said.

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He added, “Investors price execution certainty, not policy intention.”

Six-point EV compact

To move Nigeria from growing EV interest to mass adoption, Metropolitan Electric proposed a six-point “Nigeria EV Compact”.

The first is the development of a stable 10-year EV roadmap under a single coordinating body with sufficient authority to align the activities of relevant government agencies.

The second is to create anchor demand by progressively increasing EV procurement quotas for government fleets and public transportation.

The company also recommended financing “kilometres, not cars” through a naira-denominated green-mobility facility, credit guarantees and multi-year leasing arrangements.

It called for charging infrastructure to be treated as regulated infrastructure, with standardised permits, defined service levels and transparent tariffs.

The fifth proposal is performance-based localisation, with incentives tied not just to vehicle assembly but to production, quality, job creation, components, research and development and exports.

The final recommendation is to strengthen consumer and investor confidence through technician certification, transparent warranty disclosure, battery-health standards and clear rules for battery disposal and end-of-life management.

Obadina stressed that the goal should not be permanent government subsidies but the creation of a market capable of attracting private finance, supporting local production and eventually competing without extraordinary government intervention.

“The objective is not permanent subsidy. It is a bankable market that scales, localises and eventually competes,” he said.

Put fleets before private cars

Obadina argued that Nigeria should avoid simply copying the private-car-led EV transition experienced in wealthier economies.

Instead, he urged policymakers to prioritise vehicles that cover high daily mileage, including buses, logistics vehicles, institutional fleets and two- and three-wheelers.

Such vehicles, he explained, can generate returns on vehicle and charging infrastructure investments faster because of their intensive utilisation.

He said charging infrastructure should therefore be planned around actual depots, routes and daily driving patterns rather than deployed without regard to vehicle utilisation.

Obadina pointed to Metropolitan Electric’s operations as evidence that electric mobility can work in Nigeria when the wider ecosystem is properly coordinated.

Since 2023, the company has supplied, deployed and maintained more than 200 EVs, with another 150 units ordered. It has also deployed more than 6MW of charging infrastructure and operates in Lagos, Abuja, Abeokuta, Port Harcourt and Kaduna.

The Metropolitan Electric boss challenged policymakers, investors and journalists to judge the country’s EV transition by actual performance rather than policy announcements.

He said stakeholders should track the number of EVs operating daily, cost per kilometre, charging uptime, warranty performance and who ultimately bears the risks associated with batteries, financing and recycling.

“Count what operates, not what is announced,” Obadina said, insisting that Nigeria’s EV future must be “engineered, assembled, financed, charged and maintained here.”

Electric Vehicles: Six-point blueprint to drive mass adoption, by Metropolitan CEO

New Mercedes-Benz Atego’s technology, performance raise benchmark in Nigeria’s truck business

Weststar Associates Limited, authorised general distributor of Mercedes-Benz in Nigeria, has raised the bar in the country’s medium-duty truck market with the introduction of the new Mercedes-Benz Atego 1726, combining stronger performance, enhanced braking technology and greater versatility to meet the increasingly demanding needs of Nigerian businesses.

The new Atego 1726, which replaces the widely acclaimed Atego 1725, represents a significant evolution of the model, bringing together improved engineering, enhanced drivetrain technology and greater operational efficiency for transport and logistics operators.

The latest addition to Weststar’s commercial vehicle portfolio has been designed for businesses where reliability, vehicle uptime and total cost of ownership are critical to profitability.

Powered by the proven OM 926 six-cylinder, 7.2-litre diesel engine, the Atego 1726 delivers 256 horsepower and 900Nm of torque, giving operators the power required for demanding cargo operations while maintaining smooth performance under varying road and load conditions.

A major technology highlight is the optional Mercedes-Benz High-Performance Engine Brake, a three-stage braking system capable of delivering up to 300kW of braking power.

The system provides enhanced vehicle control, particularly on difficult terrain and during heavy-load operations, while reducing reliance on the service brakes. This can help minimise brake wear and lower maintenance costs over the truck’s operating life.

Beyond its powertrain, the Atego 1726 offers a highly adaptable chassis platform that allows operators to configure the truck for a wide range of commercial applications.

Its chassis-cab design makes it suitable for distribution and FMCG logistics, beverage transportation, refrigerated haulage, municipal and waste management services, construction, oil and gas logistics, general haulage, crane operations and specialised tipper applications.

With a Gross Vehicle Weight of 17.1 tonnes, the Atego 1726 is built to carry substantial payloads while maintaining stability, handling and ride comfort.

Its suspension system, featuring proven parabolic springs on both the front and rear axles, further reinforces its suitability for the demanding operating conditions often encountered on Nigerian roads.

The truck also places emphasis on driver comfort, with customers able to choose from Classic, Comfort and Standard cockpit configurations. The options provide businesses with flexibility while giving drivers an ergonomic working environment suited to extended hours behind the wheel.

Speaking on the introduction, Head of Commercial Vehicles at Weststar Associates Limited, Umoh Ekanem, said the new Atego 1726 reflected the company’s commitment to providing Nigerian businesses with reliable and efficient commercial vehicles.

“The introduction of the new Mercedes-Benz Atego 1726 demonstrates our continued commitment to providing Nigerian businesses with commercial vehicles that deliver outstanding reliability, efficiency and performance,” Ekanem said.

“Our customers operate in demanding environments where every delivery and every hour of uptime matters. The Atego has long been recognised as a dependable workhorse, and this latest model builds on that legacy by offering improved technology, greater versatility and enhanced productivity.

“We are confident it will continue to support businesses across multiple sectors while delivering the premium quality and durability that customers expect from Mercedes-Benz.”

The Atego has established a global reputation as one of Mercedes-Benz’s most versatile medium-duty trucks, offering a balance of strength, efficiency and flexibility across diverse transport applications.

The Atego 1726 builds on that reputation by providing fleet operators with a vehicle capable of adapting to changing business needs while helping to improve productivity and control lifetime operating costs.

Weststar has also backed the new truck with after-sales support through its nationwide network, providing access to genuine spare parts, technical expertise and fleet support throughout the vehicle’s lifecycle.

The Atego 1726 is now available through Weststar Associates and its authorised commercial vehicle dealership network nationwide.

Customers can contact Weststar’s Commercial Vehicles team or visit an authorised dealership for product specifications, pricing and fleet consultation.