FG: The revenue of the states doubled after removing the gasoline subsidy

… Politics free the funds once swallowed by the subsidy for petrol

… the Nigerians still moan under the cost of undernant’s life

On Friday, the federal government said that monthly allocations to state governments doubled by the removal of the subsidy for petrol in May 2023.

The Minister of Finance and the Coordination of the Minister of Economy, Wale Edun, revealed it to national dialogue on the financing of health in Abuja, observing that the reform, although painful, has restored the tax balance through government levels.

Edun explained that before the reform, the subsidy regime consumed about 2.5 percent of the gross domestic product (GDP) of Nigeria, while in large part some individuals and foreigners benefited.

“The removal of the subsidy was a difficult decision, but has restored the tax balance, not only at the federal level.

“States now have twice the type of funds they had before, allowing them to satisfy their obligations in critical sectors, including health and education,” he said.

The minister stressed that the subsidy had deprived the country of adequate investments in health care, infrastructure and development of human capital for years.

He added that the opportunities to retain the subsidy meant that the crucial sectors for the well -being of the Nigerians were subfinited.

Since President Bola Tinubu has announced politics in May 2023, petrol prices have risen to over n1,000 per liter before descending slightly below N900 in recent weeks.

The decision triggered widespread difficulties, with the inflation that reached a peak of 27 % last year before facilitating at 21.88 percent in July 2025.

Food inflation is also moderate at 22.74 percent year by year in July, compared to 39.53 percent in the same period last year.

Despite the increase in revenue, critics claim that states have not equal the increase in allocations with visible improvements in the standards of life, since poverty and unemployment continue to bite.

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