The Nigeria Employers’ Consultative Association (NECA) has called on state and local governments to account for the N10.4 trillion distributed to them from resources generated following the removal of petrol subsidy.
NECA Director-General, Adewale-Smatt Oyerinde, made the call during an interview on Channels Television’s Sunrise Daily on Thursday, following the Federal Government’s disclosure of how subsidy savings were distributed.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, had disclosed that the removal of petrol subsidy generated N15.8 trillion in resources for the Federation between June 2023 and December 2025.
Of the amount, the Federal Government received N5.4 trillion, while N10.4 trillion was shared among states and local governments through the Federation Account.
Oyerinde said the disclosure created an obligation for state governments, particularly commissioners of finance, to explain how much they received and how the funds were spent.
He compared the demand for accountability to the financial reporting obligations of private businesses, where companies audit their accounts and present performance reports to shareholders.
The NECA chief urged states to disclose the amounts received, the challenges encountered and how the funds were utilised, arguing that greater transparency would enable citizens to scrutinise public spending.
He also called on citizens to engage state and local governments constructively over the use of public resources, stressing that development should begin at the grassroots.
Government received N20.4trn in additional resources
Oyedele said the Federal Government generated N3.1 trillion in additional independent revenue between June 2023 and December 2025, mainly from remittances by government-owned entities and increased surpluses from government agencies.
The government also borrowed N11.9 trillion during the period, bringing its incremental resources from additional revenue and borrowing to N20.4 trillion.
However, incremental expenditure during the same period stood at N30.64 trillion.
The minister identified petrol subsidy removal and the unification of the foreign exchange market as key reforms implemented by the President Bola Tinubu administration to address fiscal and economic distortions.
Subsidy removal
President Tinubu announced the removal of petrol subsidy during his inauguration on May 29, 2023, triggering a sharp increase in petrol prices and raising transportation, logistics and production costs.
The Federal Government has defended the policy as necessary to reduce fiscal pressures and redirect resources towards other priorities, while introducing measures aimed at cushioning its impact on households and businesses.
NECA’s latest call places renewed focus on how the financial benefits attributed to subsidy removal have been distributed and utilised across Nigeria’s three tiers of government.
The association is demanding that states and local governments provide clear financial records on the N10.4 trillion they received, allowing citizens to assess how the funds have translated into public services and development.
