Subsidy Savings: NECA Demands Accountability for ₦10.4tn Shared to States, LGs
The Nigeria Employers’ Consultative Association (NECA) has called on state and local governments to account for the ₦10.4 trillion they received from savings generated by the removal of Nigeria’s petrol subsidy.
NECA Director-General, Adewale-Smatt Oyerinde, made the call during an interview on Channels Television’s Sunrise Daily on Thursday.
His comments followed the disclosure by Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, that petrol subsidy removal generated ₦15.8 trillion for the Federation between June 2023 and December 2025.
According to Oyedele, the Federal Government received ₦5.4 trillion, while ₦10.4 trillion was distributed to state and local governments through the Federation Account.
NECA demands details of subsidy savings spending
Oyerinde said the disclosure has created an obligation for state governments to explain publicly how the funds were spent.
He specifically called on state finance commissioners to provide details of the amounts received and how the money was 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 said greater transparency would help Nigerians understand how the funds generated from petrol subsidy removal have been deployed.
NECA compares government accountability with businesses
Oyerinde compared the demand for public accountability with the financial reporting practices of private companies.
He noted that businesses regularly audit their accounts and present performance reports to shareholders.
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“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,” he said.
According to him, governments should adopt a similar approach by providing clear reports on the revenue received and projects or programmes funded with the money.
“The Minister of Finance has led the way now, and the states also should follow,” Oyerinde added.
How much did subsidy removal generate?
The Federal Government says the removal of the petrol subsidy generated ₦15.8 trillion between June 2023 and December 2025.
Of that amount, ₦5.4 trillion went to the Federal Government, while ₦10.4 trillion was shared with state and local governments through the Federation Account.
The figures have renewed calls for transparency over the use of subsidy savings, particularly at the subnational level.
NECA’s position is that states and local governments should disclose the amounts they received and provide clear accounts of how the funds were spent.
