Abuja, Nigeria – Nigeria would have spent an estimated N52 trillion (approximately $36.2 billion USD) on fuel subsidies in 2026 if the policy had not been removed, according to the head of the Nigeria Revenue Service (NRS), Zacch Adedeji. This figure would have consumed about 76 percent of the country’s entire national budget for the year.
Adedeji explained that the decision to end the subsidy has dramatically improved the nation’s fiscal outlook and repositioned the economy on a more stable footing. According to Okay News, the reforms have led to increased revenue, higher allocations to states, and a significant boost in the country’s external reserves, which have grown to around $34 billion.
President Bola Tinubu announced the removal of the decades-old fuel subsidy during his inaugural address on May 29, 2023. The policy, which kept fuel prices artificially low but placed an enormous strain on public finances, had become a major point of economic contention for the nation.
The move is part of a wider set of economic reforms aimed at ensuring long-term fiscal sustainability. These efforts also include the recent transition of the country’s main tax body into the NRS, a change intended to improve tax governance and boost investor confidence.
