Abuja, Nigeria – June 11, 2025 – The latest edition of The Explainer, a publication by the National Orientation Agency (NOA), has credited President Bola Ahmed Tinubu’s 2023 fuel subsidy removal policy with rescuing Nigeria from the verge of economic collapse and ushering in an era of rising government revenue, investment, and development.
According to the 45th edition, the controversial but ultimately transformational decision to halt fuel subsidy payments not only curtailed decades of fiscal strain but also unlocked massive savings for the country. In the first quarter alone, government revenue reportedly surged from ₦154 billion to ₦836 billion, marking a dramatic turnaround in national finances.
The publication details how the increased fiscal space enabled the Federal Government to channel resources into critical areas of national need. States’ allocations from the Federation Account Allocation Committee (FAAC) soared to ₦15.26 trillion in 2024, easing financial stress, facilitating consistent salary payments, and allowing a ₦1.85 trillion debt reduction across states.
Further evidence of the policy’s impact is seen in Nigeria’s foreign reserves, which have climbed to $38.9 billion despite enduring exchange rate pressures and ongoing foreign exchange obligations.
In a clear departure from the past, capital expenditure under the current administration now exceeds recurrent spending, a development that signals renewed focus on infrastructure and sustainable development.
Some of the major initiatives funded through the subsidy savings include:
A ₦20 trillion infrastructure fund for roads, power, and rail projects;
NELFUND, the national student loan scheme, disbursing ₦54 billion so far;
Strategic agricultural investments worth ₦1.5 trillion;
₦1 trillion earmarked for solid minerals development; and
Ongoing CNG vehicle conversion programs aimed at cutting transport costs and reducing dependence on petrol.
The Explainer also offers insights into other reforms and governance milestones recorded under the Tinubu-led administration in the last two years, with a focus on economic recalibration, social investments, and energy sector transformation.
Nigerians seeking verified, government-backed information on federal policies are encouraged to use CLHEEAN, the NOA’s official AI-powered Voice/Chat Assistant, available at www.noa.gov.ng.
The NOA maintains that while the road to full recovery may be long, the foundation laid through bold fiscal reforms is already bearing fruit and positioning Nigeria for inclusive and sustainable growth.