The Nigeria Employers’ Consultative Association (NECA) has called on state and local governments to 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, following revelations by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, that the subsidy removal generated ₦15.8 trillion for the Federation between June 2023 and December 2025.
Oyedele disclosed on Wednesday that the Federal Government received ₦5.4 trillion from the amount, while ₦10.4 trillion was distributed to state and local governments through the Federation Account.
Reacting to the disclosure, Oyerinde said state governments, particularly commissioners of finance, should publicly explain how the funds allocated to them 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.
The NECA chief compared the expected transparency in government to financial reporting practices in the private sector, where businesses routinely present audited accounts and performance reports 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.
Oyerinde urged states to disclose the amounts received, the challenges encountered and how the funds were spent, describing such disclosures as necessary for greater transparency in public administration.
He said citizens should also take advantage of the information provided by the Federal Government to engage state and local governments on the management of public resources.
“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,” he said.
₦15.8tn in Subsidy Savings
Oyedele had disclosed that the removal of the petrol subsidy mobilised ₦15.8 trillion in resources for the Federation between June 2023 and December 2025.
The minister clarified that the figure did not appear as a separate credit to the Federation Account labelled “subsidy savings”, but was reflected in the overall 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,” Oyedele said.
According to him, ₦5.4 trillion went to the Federal Government, while ₦10.4 trillion was distributed to state and local governments through the Federation Account.
Oyedele also disclosed that the Federal Government generated an additional ₦3.1 trillion in independent revenue during the period, largely from remittances by government-owned entities and higher surpluses from government agencies.
In addition, the Federal Government borrowed ₦11.9 trillion between June 2023 and December 2025, bringing its incremental resources from additional revenue and borrowing to ₦20.4 trillion.
However, the minister said incremental expenditure during the period amounted to ₦30.64 trillion.
He identified the removal of the petrol subsidy and the unification of the foreign exchange market as key reforms introduced by the President Bola Tinubu administration to address longstanding economic distortions and reduce pressure on government finances.
