Subsidy removal: Nigeria’s revenue rises to record N10.14 trillion

A recent report from the Nigeria Extractive Industries Transparency Initiative (NEITI) sheds light on an important fiscal development in Nigeria.

According to the research, Nigeria’s statutory revenue allocations will reach a record N10.14 trillion in 2023. This rise, which totalled N1.93 trillion higher than the previous year, was mostly due to the withdrawal of subsidies on Premium Motor Spirit (PMS), also known as fuel.

President Bola Tinubu‘s decision to end petrol subsidies in May 2023 had an immediate impact on petrol prices, which rose from N198/litre to around N500/litre overnight.

The Nigerian National Petroleum Company Limited rapidly followed this decision, resulting in future price rises of up to N617 per litre in the following weeks.

The relevance of these findings was underscored by Dr. Ogbonnaya Orji, Executive Secretary of NEITI, who emphasised the agency’s commitment to openness and accountability in public finance management.

The report presented a thorough breakdown of revenue receipts, stating that the Federal Government collected N3.99 trillion, while states and local governments split N3.585 trillion and N2.56 trillion, respectively.