The National Orientation Agency (NOA) has said that funds saved from the removal of petrol subsidy are being reinvested into key sectors such as social welfare, infrastructure, education, security, and economic empowerment.
Director-General of the Agency, Lanre Issa-Onilu, disclosed this in the agency’s weekly publication, where he noted that the reforms introduced since President Bola Ahmed Tinubu assumed office in May 2023 are aimed at stabilising the economy and correcting what he described as “decades of fiscal sabotage.”
According to him, policies such as the removal of petrol subsidy, the unification of exchange rates, and ongoing tax reforms have significantly increased government revenue. However, he acknowledged that there is growing concern among citizens about the visible impact of these policies.
“One popular question about ‘where all the extra money is going, and why are we still borrowing,’ keeps surfacing on the streets and social media,” Issa-Onilu noted.
“Here’s the clear, fact-based answer: Yes, revenues have increased, but these gains are being strategically reinvested into social welfare, infrastructure, education, security, and economic empowerment to address decades of under-investment.”
He explained that a significant portion of the increased revenue is being channelled into the Presidential Loan and Grant Scheme, which is supporting over 900,000 micro, small and medium enterprises (MSMEs), as well as manufacturers, to boost productivity at the grassroots level and reduce unemployment.
On education, the NOA DG stated that the government has prioritised funding for the new student loan scheme, which currently benefits about 500,000 students across tertiary institutions. He said the programme ensures access to interest-free education financing, regardless of students’ economic backgrounds.
Other areas of focus include road and transport infrastructure. Issa-Onilu said funding is currently supporting over 440 road projects, covering approximately 2,700 kilometres of major highways, including key coastal and inland corridors.
He also listed gains in minimum wage implementation, mineral development, oil and gas investment, and regional equity.
“Minimum wage implementation: The new national minimum wage of ₦70,000 is being paid to improve purchasing power and social welfare,” he said. “Solid minerals and natural resources: These unlock over $800 million in investments and 75,000+ jobs across Nigeria’s growing mineral economy.
“Oil, gas and energy expansion: This initiative enables over $8 billion in oil and gas investments, alongside new tax incentives and refinery rehabilitation. Regional development commissions: Five new development commissions were established to address historical regional disparities and promote equitable growth.”
Issa-Onilu also revealed that over ₦1 trillion saved from the subsidy removal has been directly applied to social interventions, including cash transfers, food palliatives, transport support, and fertiliser subsidies.
“Five hundred billion naira in 2023 alone went to cash transfers, food palliatives, fertiliser subsidies and transport support. Over 900,000 small businesses accessed funds under the Presidential Loan and Grant Scheme,” he said.
“About 500,000 Nigerian students are currently enrolled in the interest-free student loan scheme, ensuring that economic status is no longer a barrier to education.”
He said beyond the direct interventions, the removal of subsidy has allowed for investments in critical infrastructure, health, and education, while enhancing fiscal transparency and strengthening state and local governance through increased allocations.
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