Nigeria Subidy removal and its Implication in Our Economic growth

This paper examines Nigeria’s fuel subsidy removal from June 2023 to December 2025 and its implications for economic growth. Using data from the Federal Ministry of Finance, the analysis shows that subsidy removal generated about N15.8 trillion in savings, with states receiving N6.5 trillion and the federal government N5.4 trillion. Additional resources came from N11.85 trillion in incremental borrowing and N3.1 trillion in other revenues. However, N30.6 trillion was spent, largely on wage adjustments, external debt service driven by naira depreciation, infrastructure, and rising electricity subsidies. While the reforms improved fiscal sustainability, external reserves, and investor confidence, household welfare remains weak with high inflation and PMS prices. The document’s narrative shifts accountability to states, ignoring their increased responsibilities with limited allocation. For sub-nationals like Anambra, the challenge is to communicate transparently on utilization while delivering visible development.