Government records obtained from the Nigeria Governors Forum and National Bureau of Statistics websites reveal that the federal government has managed to save approximately N1.45 trillion from the removal of the subsidy on Premium Motor Spirit, commonly known as petrol, between June and September.

An analysis of the data shows that the Non-Oil Revenue (Savings) account received N696.93 billion in June, N389.7 billion in July, N71 billion in August, and N289 billion in September.

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President Bola Tinubu officially announced the removal of petrol subsidy during his inaugural address on May 29, 2023, declaring, “Subsidy is gone.”

Prior to the removal, the Nigerian National Petroleum Company Limited had spent N1.828 trillion on subsidy payments between January and May 2023, a 55 percent increase compared to the same period in 2022.

In the first four months of 2023, about N1.15 trillion was spent on subsidy, with N274.769 billion in January, N477.742 billion in February, N415.381 billion in March, and N353.130 billion in April.

On August 1, 2023, President Bola Tinubu disclosed in a nationwide broadcast that the Federal Government had saved N1 trillion in the two months since the removal of the petrol subsidy.

He emphasized that these funds, previously benefiting “smugglers and fraudsters,” would now be redirected toward intervention programs for families across the country.

Trade Union Congress President Festus Osifo raised concerns about the funds saved by the government, questioning how they were being used.

He suggested that, since N1 trillion had been saved, there was no need for the government to continue borrowing, and part of the funds should be allocated to benefit Nigerians.

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Minister of Information and National Orientation Mohammed Idris acknowledged that substantial savings had been achieved through the petrol subsidy removal, and these savings had been passed on to state governments to help alleviate the policy’s impact on Nigerians.

While he did not provide an exact figure, he emphasized that the government believed in distributing funds through state governors, as they are closer to the people.