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Nigerian employers, under the aegis of the Nigeria Employers’ Consultative Association (NECA), have urged states and local governments to account for the ₦10.4 trillion distributed to them from resources generated following the removal of the petrol subsidy.
The Director-General of NECA, Adewale-Smatt Oyerinde, made the call in an interview on Channels Television today following the disclosure by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that the removal of petrol subsidy mobilised ₦15.8 trillion for the Federation between June 2023 and December 2025.
Oyedele, yesterday, revealed that the federal government received ₦5.4 trillion of the amount, while ₦10.4 trillion was shared among states and local governments through the Federation Account.
But the NECA DG said the disclosure had placed an obligation on state governments, particularly their commissioners for finance, to explain how the funds received had been utilised.
“Absolutely. I think it should trickle down. The commissioners of finance in states, you come out and also say, this is how much we’ve received; this is how much we have spent,” he said.
Oyerinde likened the need for public accountability to the way private businesses report their financial performance to shareholders.
“We believe strongly that as private businesses, at the end of the year you audit your accounts, you present your scorecard to your shareholders to gauge what we have done. The Minister of Finance has led the way now, and the states also should follow,” he said.
The NECA boss urged state governments to disclose how much they had received, the challenges they faced and how the funds had been spent.
“And so this is how much we have received. These are the constraints we face, and this is how we have expended this amount. I think we should move progressively towards transparency in government,” he said.
Oyerinde commended the federal government for allowing the Minister of Finance to publicly provide details of the government’s finances, describing the move as a step towards greater transparency. He said the level of detail provided by Oyedele would enable citizens and other stakeholders to scrutinise government spending better.
According to him, greater disclosure would also make it easier for citizens to engage state and local governments constructively on how public funds were being used.
“I also put citizens, and I must say this, citizens are also in a good position now to engage constructively, engage the state governments constructively, and also engage local governments constructively, because that is where development should actually start,” Oyerinde said.
N15.8 trillion Subsidy Savings
Oyedele had disclosed that the removal of the petrol subsidy generated N15.8 trillion in resources for the Federation between June 2023 and December 2025.
He clarified that the amount did not appear as a separate credit to the Federation Account labelled “subsidy savings” but was reflected in the resources available to the three tiers of government.
“Between June 2023 and December 2025, subsidy savings mobilised the sum of ₦15.8 trillion in resources for the Federation,” the minister said.
He explained that the federal government received ₦5.4 trillion, while ₦10.4 trillion went to state and local governments through the Federation Account.
Oyedele also said the federal government generated ₦3.1 trillion in additional independent revenue during the period, largely through remittances from government-owned entities and increased surpluses from government agencies.
The government also borrowed ₦11.9 trillion between June 2023 and December 2025, bringing the Federal Government’s incremental resources from additional revenue and borrowing to ₦20.4 trillion.
However, Oyedele said incremental expenditure during the period stood at ₦30.64 trillion.
The minister identified the removal of petrol subsidy and the unification of the foreign exchange market as major reforms introduced by the President Bola Tinubu administration to address longstanding economic distortions and ease pressure on government finances.
Subsidy Removal
President Tinubu announced the removal of the petrol subsidy on May 29, 2023, during his inauguration, declaring that “subsidy is gone”.
The policy triggered a sharp increase in petrol prices and contributed to higher transportation, logistics and production costs, worsening the cost-of-living pressures faced by households and businesses.
The federal government has continued to defend the reform as necessary to reduce fiscal pressure and redirect public resources towards other priorities, while introducing measures including wage adjustments, agricultural support and the expansion of Compressed Natural Gas initiatives to cushion its impact.
