Former Presidential Aide and Ambassador-designate to Mexico, Mr Reno Omokri, has said that savings from the removal of fuel subsidy by President Bola Tinubu’s administration are being invested in critical sectors of the economy.
Omokri stated this in a statement on Sunday while responding to concerns over the impact of the subsidy removal policy.
He said that the benefits of the policy were evident in the growth of the nation’s foreign reserves, increased allocations to states, expansion of student loan funding, establishment of regional development commissions and execution of major infrastructure projects.
According to him, Nigeria’s foreign reserves have recorded significant growth under the current administration, rising from a reported net reserve position of 3.7 billion dollars in 2023 to 50.26 billion dollars as of June 2026.
He said the improved reserves had strengthened the country’s ability to withstand external economic shocks, support the importation of essential goods and services and meet its financial obligations.
Omokri also noted that the removal of fuel subsidy had led to increased revenue available for distribution to the three tiers of government through the Federation Account Allocation Committee (FAAC).
He said that while FAAC distributed N725.57 billion in March 2022, the figure increased to N2.036 trillion in March 2026.
The ambassador-designate further said that regional development commissions established across the six geopolitical zones had become major beneficiaries of the subsidy savings.
According to him, the commissions now receive about N2.5 trillion annually to support development initiatives in their respective regions.
On education, Omokri said that more than one million indigent students had benefited from the Nigerian Education Loan Fund (NELFUND), with about N300 billion disbursed under the scheme.
He also cited ongoing infrastructure projects, including the Lagos-Calabar Coastal Highway, the Illela-Sokoto-Badagry Superhighway and the Trans-Saharan Road project, as examples of investments being funded through the savings.
Omokri said that the subsidy removal policy had enabled the Federal Government to redirect resources towards long-term development programmes aimed at improving the welfare of citizens and stimulating economic growth.
He maintained that claims that Nigerians could not identify the benefits of the policy were unfounded, adding that investments in infrastructure, education, regional development and fiscal stability reflected the utilisation of the savings.
According to him, increased allocations to states have enhanced their financial capacity, while reforms in the education sector have contributed to relative industrial harmony in public universities.
Omokri expressed optimism that the administration’s reforms would lay a solid foundation for sustainable economic growth and improved human development outcomes in the country.
