The Nigeria Employers’ Consultative Association (NECA) has called on state and local governments to publicly account for the ₦10.4 trillion they received from resources generated following the removal of the petrol subsidy.
NECA Director-General, Adewale-Smatt Oyerinde, made the call during an interview on Channels Television’s Sunrise Daily on Thursday.
His demand followed a disclosure by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that the removal of the petrol subsidy generated ₦15.8 trillion in resources for the Federation between June 2023 and December 2025.
According to Oyedele, the Federal Government received ₦5.4 trillion, while ₦10.4 trillion was distributed to state and local governments through the Federation Account.
Reacting to the figures, Oyerinde said the disclosure should prompt state finance commissioners to explain how the funds allocated to their respective governments were spent.
He stressed that governments at all levels should adopt greater transparency in managing public resources.
Oyerinde compared the situation to the practice in the private sector, where companies are expected to present audited financial reports to shareholders.
He said the Federal Government had set an example by making details of its finances available and urged state governments to follow suit by publishing their receipts, expenditures and challenges.
The NECA chief also encouraged citizens to demand explanations from state and local governments on how the funds were utilised, noting that development should begin at the grassroots.
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₦15.8tn Mobilised From Subsidy Reform
Oyedele had said the ₦15.8 trillion generated through the subsidy reform represented resources mobilised for the Federation and was not a separate payment specifically labelled “subsidy savings” into the Federation Account.
He also disclosed that the Federal Government generated an additional ₦3.1 trillion in independent revenue during the period, mainly through remittances from government-owned entities and higher surpluses from government agencies.
The government further borrowed ₦11.9 trillion between June 2023 and December 2025, bringing the Federal Government’s additional resources from borrowing and increased revenue to ₦20.4 trillion.
However, the minister said incremental expenditure during the same period reached ₦30.64 trillion.
The removal of the petrol subsidy was announced by President Bola Tinubu during his inauguration on May 29, 2023.
The policy resulted in a significant rise in petrol prices and increased transportation, logistics and production costs, contributing to the cost-of-living pressures experienced by Nigerians.
The Federal Government has maintained that the reform was necessary to reduce pressure on public finances and redirect resources to other areas of the economy.