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30 months after subsidy removal, FG spends N30.6tn, saves N15.8tn

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30 months after President Bola Tinubu removed petrol subsidy and introduced other sweeping economic reforms, the Federal Government has spent N30.64tn as government expenditure to ease effect of its policies, while the policies generated N15.8tn in savings for the Federation.

The government said its total incremental expenditure between June 2023 and December 2025 was N30.64tn, exceeding the N20.4tn in additional resources available to the Federal Government from subsidy savings, higher revenue and borrowing by N10.24tn, or 50.2 per cent.

This show that the removal of petrol subsidy created significant fiscal space but did not produce a pool of idle cash for the Federal Government.

Instead, the government said the resources were absorbed by rising wage costs, debt servicing, infrastructure spending and other obligations arising from the same economic reforms.

Put differently, for every N100 the Federal Government generated in additional resources, it spent about N150, leaving about one-third of the expenditure to be funded from its existing revenue base.

The development came as the Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed that the removal of petrol subsidy and the unification of the foreign exchange market mobilised N15.8tn in additional resources for the Federation during the period.

However, the government received only N5.4tn, representing 34 per cent of the subsidy savings, while the states received N6.5tn and local governments got N3.9tn under the Federation Account allocation formula.

These figures were contained in the Federal Government’s Nigeria Reform Scorecard titled, “The Benefits, Costs and Harm Prevented”, released on Wednesday. The purposes of the news conference was to provide Nigerians with clear and factual information on the savings arising from the removal of the foreign subsidy and foreign exchange unification.

According to Oyedele, the N15.8tn was not paid into the Federation Account under a heading described as “subsidy savings.”

Instead, he said the combined effect of the petrol subsidy removal and foreign exchange reforms increased the naira value of revenues accruing to the Federation.

“Between June 2023 and December 2025, subsidy savings mobilised a sum of N15.8tn in resources for the Federation,” Oyedele said.

“Many people will say, ‘Where is the subsidy saving?’ As a matter of fact, there wasn’t any line in the Federation Account with the description, ‘subsidy savings.’

“So, the subsidy savings showed up in the form of higher collection by Customs because, for every one dollar of import duty before, at N460, it became one dollar at N1,004, N1,003, N1,005.

“The NRS, Petroleum Profit Tax that it collected before, same dollar, higher amount in naira. So, the savings showed up in the Federation accounts by way of higher revenue collections as a result of the reforms.”

The minister said the additional fiscal resources were not generated by the petrol subsidy removal alone, arguing that the foreign exchange reforms also ended what he described as an implicit subsidy that had created opportunities for rent-seeking.

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He said, “Not just the subsidy removal, but also the exchange rate flotation, because we were subsidising the exchange rate. And that subsidy was not going to the ordinary person or manufacturers. It was going to rent-seekers.”

The Finance Minister explained that although the removal of petrol subsidy generated N15.8tn in savings for the Federation between June 2023 and December 2025, only N5.4tn, or 34 per cent, accrued to the Federal Government.

The balance was shared among the states and local governments under the statutory Federation Account allocation formula.

According to the scorecard, states received N6.5tn, representing 41 per cent of the total subsidy savings, while the 774 local government areas received N3.9tn, or 24 per cent.

The Federal Government also generated N3.1tn in additional independent revenue, mainly from increased remittances by government-owned entities, while N11.9tn came from additional borrowing.

This brought the Federal Government’s total incremental resources to N20.4tn, of which borrowing accounted for 58 per cent, subsidy savings 27 per cent and other revenue 15 per cent.

Of the N30.64tn in total incremental expenditure during the 31-month period, N9.39tn was spent on wage adjustments, including the increase in the national minimum wage, wage awards and allowances for public servants.

Another N9.37tn was spent on additional external debt servicing resulting from the depreciation of the naira, while N6.47tn went into strategic infrastructure development.

The three items alone accounted for about N25.22tn, or more than 82 per cent of the total incremental expenditure.

The remaining spending included N3.14tn in additional electricity subsidy costs, N1.24tn in increased domestic debt servicing linked to higher interest rates, N423.8bn for social welfare transfers and N419.1bn for the Federal Capital Territory, Ecological Fund, Natural Resource Fund and other interventions.

The government also spent N201.26bn on the higher naira cost of foreign obligations.

He said, “In addition, the Federal Government earned incremental independent revenue of

N3.1tn, principally remittances from government-owned entities while N11.9tn came from incremental borrowing, a figure that would have been far higher, and economically destabilising, without the fiscal space the reforms created.

“Altogether, the Federal Government’s incremental resources over the period came to N20.4tn. That money did not sit idle, it partly funded incremental expenses of N30.64tn. Of this, N9.39tn went to wage adjustments, minimum wage increases and allowances for public servants; N9.37tn went to external debt service made necessary by exchange rate depreciation; and N6.5tn went into strategic infrastructure, making the top three expenditure lines. Every naira of this is accounted for, and the breakdown is in the scorecard we are releasing today.

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“Put another way: of the N20.4tn, 58 percent came from borrowing, 27 per cent from subsidy savings, and 15 per cent from other revenue. Against total incremental spending of N30.64 trillion, two-thirds was funded by these new resources, while the remaining third, about N10tn, came from the existing revenue base, despite ending the excessive printing of naira. That, in itself, is evidence of improved public financial management.”

He added, “Every naira of this is accounted for, and the breakdown is in the scorecard we are releasing today.”

The latest disclosure provides a detailed answer to the question that has followed the removal of petrol subsidy since President Bola Tinubu announced the policy on May 29, 2023: where did the savings go?

Tinubu had promised that money previously spent on subsidy would be redirected towards investments and programmes that would benefit Nigerians, including infrastructure, education and other social interventions. In a July 2023 national broadcast, the President said more than N1tn had been saved within the first few months of the policy and pledged that the resources would be used “more directly and more beneficially” for Nigerians.

However, the administration faced persistent public demands for a clear account of the savings as inflation, transport costs and other living expenses surged after the subsidy removal.

Last month, Oyedele acknowledged that the question was legitimate and promised to publish a comprehensive breakdown of the subsidy savings and their utilisation. He explained that the money was not kept in a separate savings account but was absorbed by higher government obligations, particularly debt servicing, wages and social interventions.

The new scorecard appears to be the government’s most detailed accounting yet of the resources generated by the reforms and how they were deployed.

It also underscores a central contradiction in the post-subsidy fiscal narrative: while the removal freed trillions of naira for the Federation, the Federal Government’s share was significantly smaller than the headline savings figure, and its new expenditure still outpaced its additional resources by more than N10tn.

Oyedele argued that the difference was partly financed from the existing revenue base and reflected improved public financial management, rather than a return to heavy monetary financing.

The government also maintained that the reforms prevented a deeper fiscal and economic crisis, arguing that debt service had fallen relative to revenue and that states which previously struggled to pay salaries now had improved fiscal capacity.

Oyedele said the scorecard was not designed to claim that the reforms had come without costs.

“We invited you here today not to declare a victory, but to give an account,” he said.

“For the past three years, the administration of President Bola Ahmed Tinubu has embarked on major reforms to address age-long economic challenges, the removal of a fuel subsidy that was quietly bankrupting the country, and the unification of an exchange rate system that had become a source of arbitrage, distortion and corruption rather than stability.”

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He added, “Those decisions came at a real cost, and we are not here to pretend otherwise. Prices rose. The naira adjusted sharply. Households and businesses felt it, and many still do.”

The Federal Government said the scorecard was intended to show not only what the reforms generated, but also what the administration believes Nigeria would have faced if the subsidy regime, multiple exchange rates and unchecked Ways and Means financing had continued.

Also speaking, the Minister of Information and National Orientation, Mohammed Idris described the decision to remove the fuel subsidy as one of the most significant and difficult economic reforms undertaken by the Tinubu administration, acknowledging that it had imposed real costs and adjustments on households, businesses and communities.

He, however, said the reforms were necessary to redirect resources previously committed to an unsustainable subsidy regime towards investments capable of delivering greater and more sustainable value to Nigerians.

“Citizens have a right to know what resources have been freed up, what these resources mean for the Federation, and how the benefits of reform are being translated into tangible improvements in their lives,” the minister said.

Also in his remarks, the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, provided further context on the rationale for the reforms, noting that President Tinubu inherited an economy with one of the world’s lowest revenue-to-GDP ratios and, consequently, limited fiscal capacity relative to Nigeria’s population and developmental needs.

Bagudu said the administration had to make bold and difficult choices to address fiscal leakages, restore confidence in the economy and create greater room for investment in security, infrastructure, human capital development and grassroots development.

He said President Tinubu chose to confront the economic realities he inherited rather than apportion blame, drawing lessons from international experience in pursuing the difficult reforms required to place the Nigerian economy on a more sustainable footing.

The minister said the reforms had also been accompanied by interventions to cushion their effects on vulnerable Nigerians, stressing that increased revenues would provide government with greater capacity to discharge its constitutional and developmental responsibilities.

He noted that resources generated and mobilised through the reforms were being invested in projects and programmes across the six geopolitical zones, adding that improved connectivity, security, infrastructure and economic opportunities would ultimately benefit Nigerians across the Federation.

Source: punchng.com

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CBN reveals that Banks shut 476 branches in three years, read details

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Deposit Money Banks in Nigeria closed a net 476 branches and cash centres between 2022 and 2025, reducing their physical footprint by 8.8 per cent in three years, according to data from the Central Bank of Nigeria.

Figures contained in the CBN’s 2025 Statistical Bulletin for the Financial Sector showed that the number of bank branches and cash centres across the country declined from 5,410 in 2022 to 4,934 in 2025.

The decline occurred despite an increase in the number of banks operating in the country over the period, pointing to a gradual contraction in physical banking locations.

An analysis by The PUNCH showed that the number of branches fell by 37 from 5,410 in 2022 to 5,373 in 2023. The pace of contraction accelerated in the following year, with 229 locations disappearing as the total dropped to 5,144 in 2024. Banks closed another net 210 locations in 2025, bringing the number down to 4,934.

Consequently, about 92 per cent of the 476 net reduction recorded over the three-year period occurred in 2024 and 2025. The CBN explained that the figures cover branches and cash centres operated by commercial, merchant and non-interest banks. The data were sourced from the apex bank and the Nigeria Deposit Insurance Corporation.

The reduction in physical banking locations came even as the number of banks increased from 32 in 2022 to 33 in 2023 and 35 in 2024, before declining slightly to 34 in 2025. The number of branches operated abroad remained unchanged at two throughout the period.

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A state-by-state analysis showed that Lagos recorded the largest decline in absolute terms. The country’s commercial hub had 1,602 branches and cash centres in 2022, but the figure fell to 1,532 in 2023 and 1,521 in 2024 before dropping further to 1,444 in 2025.

This meant banks closed a net 158 locations in Lagos within three years, representing a 9.9 per cent reduction. The state alone accounted for about one-third of the net decline recorded nationwide.

Despite the reduction, Lagos remained the dominant location for physical banking operations, accounting for about 29 per cent of the country’s 4,934 branches and cash centres in 2025.

The Federal Capital Territory also recorded a decline. The number of locations in Abuja stood at 400 in both 2022 and 2023 before falling to 391 in 2024 and 362 in 2025. This represented a net reduction of 38 branches and cash centres, or 9.5 per cent, over the three-year period.

Ekiti suffered one of the steepest contractions, with its branch network almost halving from 107 locations in 2022 to 57 in 2025, representing a decline of 50 locations or 46.7 per cent.

Enugu followed with a reduction of 44 locations from 162 to 118, while Oyo lost 41, declining from 237 to 196. Other states that recorded sizeable declines included Ondo, where the number fell from 127 to 105; Plateau, from 80 to 61; Osun, from 113 to 96; Cross River, from 83 to 67; and Rivers, from 290 to 275.

The decline was also evident in some of the major commercial centres in northern Nigeria. Kano increased its physical banking locations from 164 in 2022 to 175 in 2023 and 183 in 2024. However, the number fell sharply to 157 in 2025, leaving the state with seven fewer locations than it had three years earlier.

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Kaduna followed a similar pattern, rising from 148 locations in 2022 to 156 in 2023 and 164 in 2024 before dropping to 146 in 2025.

Some states, however, recorded an expansion in their banking networks. Delta added 23 locations, with its total increasing from 173 in 2022 to 196 in 2025. Edo also rose from 155 to 165, while Jigawa increased from 31 to 37 and Kogi from 63 to 68.

The data further showed wide disparities in the distribution of physical banking infrastructure across the country. While Lagos alone had 1,444 locations in 2025, Yobe had 23, Taraba 26 and Zamfara 28. Bayelsa and Gombe had 31 each, while Ebonyi recorded 32.

For instance, Lagos alone accounted for more than 29 per cent of all branches and cash centres nationwide in 2025, highlighting the concentration of physical banking infrastructure in the country’s major economic centre.

The latest figures indicate that the contraction in the industry’s physical footprint has accelerated in recent years, underscoring how rapidly banking is migrating from brick-and-mortar to electronic platforms.

The PUNCH recently reported that the Central Bank of Nigeria called for greater adoption of alternative payment channels to expand access to financial services and stimulate economic activity.

Acting Director, Corporate Communications and Investor Relations Department of the CBN, Hakama Sidi-Ali, made the call at the 2026 CBN Fair in Lokoja, Kogi State.

Represented by Zubairu Salihu, Branch Controller of the CBN Lokoja Branch, she said alternative payment channels were particularly important for farmers, traders, small businesses and informal-sector operators who may have limited access to conventional banking services.

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Crude hits $107, fresh petrol price hike looms

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Petrol prices in Nigeria may rise further as international crude oil prices surged to $107 per barrel on Thursday from about $100 the previous day.

The latest rally has increased pressure on domestic petrol prices, which have already climbed from about N830 per litre before the Middle East crisis to N1,310 or more in some locations.

Before the crisis began on February 28, crude oil traded below $69 per barrel. However, the subsequent disruption to global oil supplies has pushed international prices sharply higher, prompting the Dangote Petroleum Refinery and fuel importers to adjust their pricing.

With Brent crude now above $107 per barrel and the US-Iran conflict continuing to disrupt tanker movements through the Strait of Hormuz, marketers and analysts warned that another petrol price increase could be imminent.

According to Oilprice.com, Brent crude surged to $107 per barrel on Thursday as the prolonged military confrontation between the United States and Iran continued to disrupt oil supplies through the Strait of Hormuz, raising concerns over a sustained reduction in global crude availability.

The international benchmark gained more than five per cent in early trading, extending the rally that pushed it above the $100 mark earlier in the week.

West Texas Intermediate also climbed above $100 per barrel, reflecting growing global concerns that the conflict may continue to constrain crude supplies.

The latest increase was driven largely by a sharp decline in oil flows through the Strait of Hormuz. Oilprice.com reported that volumes, which had recovered to between six million and nine million barrels per day in previous weeks, had fallen sharply, with recent estimates putting daily outflows below two million barrels.

Shipping trackers also reported that no very large crude carriers had exited the strait since early September, a significant decline from the higher tanker traffic recorded during the brief period of relative calm.

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The escalation of attacks on tankers and commercial vessels in the Persian Gulf and surrounding waters has further heightened uncertainty in the oil market.

Iran claimed to have struck several ships, while the United States confirmed the destruction of some Iranian oil tankers. Officials from both sides have given no indication of an imminent ceasefire, with their statements suggesting that the confrontation could continue for weeks or longer.

Analysts said the absence of a clear path towards de-escalation had forced traders to reassess global supply risks.

Physical crude benchmarks had already moved above $100 in recent sessions, while the futures market followed as inventories tightened and alternative export routes faced increased exposure to attacks.

For months, reports of recovering tanker traffic through the Strait of Hormuz had helped to limit upward pressure on crude prices. That outlook has now changed.

With oil flows sharply reduced and no clear diplomatic resolution in sight, global markets are increasingly pricing in the possibility of prolonged disruption to one of the world’s most important energy transit routes.

For Nigeria, sustained increases in international crude prices could continue to feed into the domestic petrol market, particularly as refiners and importers adjust their prices to reflect changes in global crude and related supply costs.

Source: punchng.com

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How to buy fuel via app, serve yourself at NNPC stations

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The Nigerian National Petroleum Company Limited has begun introducing self-service fuel pumps at selected NNPC Retail stations, allowing motorists to dispense petrol themselves using a mobile application.

The development is part of NNPC’s plan to deploy between 50 and 70 smart, self-service stations across the country within the next six months.

Unlike the conventional system where an attendant dispenses fuel, the self-service model allows customers to select the amount of fuel they want, make payment through an app and use a code to activate the pump.

NNPC Retail shared a guide on its X handle on Friday showing motorists how to use the system.

Here is a step-by-step guide on how to buy and dispense fuel yourself at participating NNPC stations:

Step 1: Motorists who want to use the self-service facility should first download the NRL Fuel App. Get the download link from the NNPC X handle.

Step 2: Open the app, tap Fuel Purchase, and select your fuel type.

Step 3: Browse the station list and choose an NNPC Retail station offering the self-service option.

The facility is currently available only at selected stations as NNPC rolls out the new system. Look for the green Self-Serve badge next to the station name. Tap it to select.

Step 3: After selecting the station, enter the amount you wish to spend on fuel. Review the quantity and price, then tap Pay from Wallet. The system will process the transaction based on the amount entered.

Step 4: Once the payment is successful, the app will generate a digital receipt. It contains your Order ID, your Self-Service Code, and a QR Code.

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Step 5: At the pump, enter your 8-digit self-service code on the terminal and press the hash key. Once validated, pick up the nozzle and fuel up—exactly the amount you paid for.

NNPC Executive Vice President, Downstream, Mumuni Dagazau, said the new model was part of the company’s plan to transform conventional filling stations into broader energy and mobility hubs.

At the newly commissioned smart station on Bill Clinton Drive, Airport Road, Abuja, NNPC Retail Executive Director, Retail Operations and Mobility, Shettima Baba-Kukawa, said customers could complete transactions on their phones and dispense the exact amount of fuel purchased.

NNPC said the smart stations would combine conventional petrol sales with services such as electric vehicle charging, liquefied petroleum gas, compressed natural gas and other mobility services.

Source: punchng.com

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