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

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Petrol Subsidy Return Could Cost Nigeria Over N20tn Yearly—Oyedele
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele

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

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Fire Guts Lagos Workshop, Destroys 21 Exotic Cars, Sparks Fears Over Petrol Station

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Fire Guts Lagos Workshop, Destroys 21 Exotic Cars, Sparks Fears Over Petrol Station

 

A fire outbreak at a mechanical workshop in the Isheri-Idimu area of Lagos State has left 21 exotic vehicles destroyed, raising fresh concerns about fire safety in automobile workshops operating close to petrol stations and residential buildings.

The inferno, which broke out at about 3.05am on Friday, October 30, along Oladunni Street, beside Eternal Filling Station in the Alimosho Local Government Area, engulfed a workshop where several high-value vehicles were reportedly parked.

The situation triggered fears among residents and business operators in the neighbourhood as the flames threatened to spread to the adjoining filling station, raising the possibility of a much bigger disaster.

However, the timely intervention of emergency responders prevented the fire from reaching the petrol station and nearby buildings, although a section of a neighbouring building sustained minor damage.

The Lagos State Emergency Management Agency (LASEMA) confirmed that about 21 exotic vehicles were affected in the incident, while assuring residents that no lives were lost and no injuries were recorded.

In a statement, the agency’s Permanent Secretary, Dr Olufemi Damilola Oke-Osanyintolu, said its Dolphin Response Team, stationed at Igando, was immediately activated following a distress call.

He explained that the team arrived at the scene and discovered that the workshop had been engulfed by fire, with several luxury vehicles parked within the premises.

The emergency operation involved personnel of LASEMA, the Lagos State Fire and Rescue Service, the Lagos Neighbourhood Safety Corps and the Nigeria Police Force.

According to Oke-Osanyintolu, the coordinated intervention of the agencies helped contain the fire and prevented it from spreading to the nearby filling station and surrounding structures.

He said the fire had been completely extinguished and damping-down operations concluded, adding that preliminary assessment indicated that 21 exotic vehicles were affected.

The LASEMA boss commended the emergency responders for their swift intervention, which he said prevented what could have developed into a major disaster.

Questions over fire service response

Meanwhile, developments surrounding the incident have generated concerns beyond the immediate destruction of the vehicles, particularly over the circumstances surrounding the emergency response.

A report by TELL Magazine, published on Saturday, cited allegations by some witnesses that the Lagos State Fire and Rescue Service initially arrived at the scene with an empty water tank.

The allegation, which has not been independently verified, raises questions about the adequacy of emergency firefighting preparedness, particularly in densely populated areas where workshops, commercial facilities and fuel stations operate in close proximity.

However, no official response from the fire service addressing the allegation was available at the time of filing this report.

There have also been reports of suspicions among some residents and affected customers about the possible cause of the fire, including suggestions of arson. However, no evidence has been established to substantiate these claims, and the cause of the outbreak remains undetermined.

The full extent of the damage to the affected vehicles, their individual owners and the financial implications of the incident have also not been officially established.

Fresh concerns over workshop safety

The incident has once again drawn attention to fire safety challenges in Nigeria’s automobile servicing and repair industry, particularly workshops where expensive vehicles are kept alongside fuel, lubricants, solvents, electrical equipment and other potentially combustible materials.

Automobile workshops routinely handle inflammable substances, including petrol, diesel, engine oil, transmission fluids and cleaning chemicals. Electrical faults, welding activities, poor storage practices and inadequate firefighting equipment can also increase the risk of fire outbreaks.

The danger becomes more pronounced when such facilities operate close to petrol stations and residential buildings, where an uncontrolled fire could quickly escalate into a major emergency.

Industry stakeholders have consistently stressed the importance of proper workshop layout, electrical maintenance, safe storage of combustible materials, functional fire extinguishers and adequate access for emergency vehicles.

The Isheri-Idimu incident also highlights the vulnerability of customers’ vehicles left in the custody of automobile workshops for repairs, servicing and maintenance, with questions likely to arise over insurance coverage and compensation for damaged property.

While LASEMA urged residents, particularly mechanical workshop operators, to observe safety precautions when handling inflammable materials, the incident underscores the need for stronger enforcement of fire safety standards and periodic inspections of high-risk business premises.

The agency also advised members of the public to report emergencies promptly through Lagos State’s toll-free emergency numbers, 767 and 112.

Although the swift intervention of emergency responders prevented the flames from reaching Eternal Filling Station, the destruction involving 21 exotic vehicles serves as another reminder of the potentially devastating consequences of fire outbreaks in commercial and residential neighbourhoods.

For the affected vehicle owners and customers, attention will now turn to establishing the cause of the fire, determining the extent of their losses and addressing the question of compensation.

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₦50,000 Monthly Relief: FG Begins Cash Payments to Vulnerable Nigerians

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₦50,000 Monthly Relief: FG Begins Cash Payments to Vulnerable Nigerians
Minister of Humanitarian Affairs and Poverty Reduction, Mr Bernard Doro
₦50,000 Monthly Relief: FG Begins Cash Payments to Vulnerable Nigerians

The Federal Government has commenced the disbursement of ₦50,000 cash assistance to vulnerable Nigerians under a new intervention aimed at helping low-income households cope with rising food prices and the increasing cost of living.

The initiative, known as the National Emergency Relief and Stabilisation Intervention (NERSI), is being implemented by the Federal Ministry of Humanitarian Affairs and Poverty Reduction as part of efforts to provide financial support to households facing economic hardship.

The Minister of Humanitarian Affairs and Poverty Reduction, Dr Bernard Doro, announced the commencement of the programme on Friday, October 30, 2026, explaining that the intervention was designed to provide immediate relief to eligible Nigerians.

According to the minister, the ₦50,000 cash support is intended to help beneficiaries meet essential household expenses amid persistent increases in the prices of food and other basic commodities.

He said the programme was introduced in response to the pressure of global food inflation and the rising cost of living, which have continued to affect the purchasing power of many households.

The government said the intervention would be reviewed periodically in response to changes in economic conditions, with beneficiaries expected to receive direct communication about any adjustments.

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Under the payment arrangement, the ministry is working with approved digital financial service providers to ensure that the funds reach selected beneficiaries through secure channels.

The programme’s official website lists ALAT by Wema Bank, MoMo PSB and NairaGram as approved payment providers. Beneficiaries are expected to receive text messages from the providers and give their consent before the funds are transferred to their accounts or mobile wallets.

The government said beneficiaries would not need to pay any fee, register through an agent or submit an application to access the intervention.

Selection is expected to be based on verified national identity records and information in the National Social Register, which is used to identify poor and vulnerable households.

The ministry also warned Nigerians to be cautious of fraudsters seeking to exploit the cash transfer programme by demanding payments or requesting confidential banking details.

Doro urged beneficiaries not to disclose their Bank Verification Numbers (BVNs), Personal Identification Numbers (PINs) or One-Time Passwords (OTPs) to anyone claiming to facilitate their payments.

He advised Nigerians who receive suspicious messages or are asked to pay money before accessing the support to contact the programme’s official helpline on 0700-022-2222 for clarification.

The intervention is expected to complement existing social protection programmes and other government efforts to cushion the impact of economic hardship on low-income households.

However, there is an important discrepancy over how frequently the ₦50,000 will be paid. Although the minister’s announcement describes the support as a monthly payment, the programme’s official website currently identifies it as a one-off grant.

The ministry should therefore clarify whether beneficiaries will receive the money every month or only once under the current intervention.

For now, Nigerians are advised to rely on official government announcements and verified messages from approved payment providers for information about eligibility and disbursement.

₦50,000 Monthly Relief: FG Begins Cash Payments to Vulnerable Nigerians

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Zamfara Kidnap: Three Imams Regain Freedom After Weeks in Captivity, Three Others Still Held

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Zamfara Kidnap: Three Imams Regain Freedom After Weeks in Captivity, Three Others Still Held

Zamfara Kidnap: Three Imams Regain Freedom After Weeks in Captivity, Three Others Still Held

Three Islamic clerics abducted by armed bandits in Zamfara State have regained their freedom after spending several weeks in captivity, following a joint security operation involving the Office of the National Security Adviser (ONSA), Department of State Services (DSS) and Nigeria Police Force.

However, three other clerics abducted alongside them on September 12, 2026, are still being held by their captors, with security agencies intensifying efforts to secure their release.

The Zamfara State Commissioner of Police, CP Muhammad Bello, confirmed the rescue on Friday, October 30, during an interview with journalists in Gusau.

Bello said the operation was successful because of the collaboration among the security agencies, which combined intelligence gathering and coordinated tactical operations to locate and rescue the victims.

He explained that the operation involved the ONSA, DSS and police operatives, adding that security personnel were continuing efforts to track down the armed bandits responsible for the abduction.

According to the police commissioner, intelligence supplied by residents and members of affected communities had also been useful in the ongoing operations.

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The rescued clerics were among six Islamic scholars kidnapped on September 12 while travelling to Talata Mafara in Zamfara State.

The victims were reportedly intercepted by heavily armed bandits at about 11:30 a.m. along the Dakko-Damri feeder road near Sububu Forest in Bakura Local Government Area, approximately three kilometres from Damri village.

The clerics were travelling to attend a special prayer gathering organised for President Bola Ahmed Tinubu at the residence of former Zamfara State Governor and Director-General of the APC Presidential Campaign Council, Senator Abdul’aziz Yari.

The gathering was intended to offer prayers for the success of Tinubu’s administration and political future ahead of the 2027 general elections.

Following the abduction, the kidnappers reportedly demanded a ransom of N30 million for the release of the clerics.

The incident generated concern among their families, religious communities and residents of Zamfara, particularly as the victims remained in captivity for weeks.

A senior security operative involved in the rescue operation said the three clerics were freed unharmed following intelligence-led security manoeuvres.

They subsequently underwent medical examinations and security debriefing and were reported to be in stable condition.

Security operatives said arrangements were being made to formally hand them over to the Zamfara State Government for reunion with their families.

Meanwhile, the police commissioner said operations would continue until the remaining three clerics were rescued and those responsible for the abduction were brought to justice.

He urged residents to provide security agencies with credible and timely information that could assist in tracking criminal groups operating across the state.

The rescue comes amid persistent security challenges in Zamfara and other parts of north-western Nigeria, where armed groups have continued to carry out kidnappings, attacks on communities and other violent crimes.

The latest development has brought relief to the families of the three rescued clerics, although uncertainty remains over the fate of those still in captivity.

Security agencies have assured that efforts to secure their freedom remain ongoing.

Zamfara Kidnap: Three Imams Regain Freedom After Weeks in Captivity, Three Others Still Held

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