President Bola Ahmed Tinubu has disclosed how his administration is deploying funds saved from the removal of fuel and electricity subsidies, emphasizing that the resources are being redirected toward national development and economic transformation.

Speaking at a policy briefing in Abuja, President Tinubu said the savings, estimated at over ₦10 trillion, are being invested in critical infrastructure, social welfare, and economic reforms aimed at reducing poverty, boosting productivity, and creating jobs.

He noted that the decision to eliminate fuel and electricity subsidies was necessary to halt wastage and financial leakages that previously enriched a few at the expense of the majority.

“We removed the fraudulent fuel subsidy and ended the unsustainable electricity subsidy. The money is now being used to build roads, empower businesses, support students, and improve power supply,” Tinubu said.

He stated that part of the funds is being used to implement strategic national road and railway projects under the Renewed Hope Infrastructure Initiative.

Housing construction is also ongoing in every state of the federation, including the Federal Capital Territory, as part of the Renewed Hope Housing Programme designed to ease the housing deficit and provide employment.

On the power sector, Tinubu explained that the removal of electricity subsidies, which cost the government over ₦3 trillion annually, is allowing the administration to reinvest in expanding access, improving grid reliability, and reforming distribution systems.

The president also highlighted the redirection of funds toward agriculture and solid minerals as part of a broader push to diversify the economy.

According to him, ₦1.5 trillion has been allocated to dry-season farming of crops like maize, wheat, and cassava, while ₦1 trillion is being used to boost solid mineral exploration and processing.

In addition, Tinubu said the government is promoting clean energy through a mass vehicle conversion programme that is shifting public and private transportation from petrol to compressed natural gas (CNG).

He noted that over 100,000 vehicles have already been converted, with a target of one million vehicles in the next three years.

On human capital, he said the government has launched the Nigerian Education Loan Fund (NELFUND), which is being funded with ₦110 billion to support over 120,000 students in public tertiary institutions.

A new Consumer Credit Corporation has also been established to provide affordable loans to workers and low-income earners.

The president pointed out that the removal of subsidies has had a positive impact on the Federation Account Allocation Committee (FAAC), with quarterly fuel subsidy savings rising from ₦154 billion to ₦836 billion. This has enabled state governments to meet salary obligations, fund capital projects, and reduce debts.

Finance Minister Wale Edun confirmed that the combined fiscal benefits have helped reduce Nigeria’s debt burden, bringing down external and domestic obligations from $108 billion to $91 billion.

However, Tinubu acknowledged that many Nigerians are yet to feel the impact of these reforms due to inflation and economic hardship. He assured that the government is rolling out further interventions, including targeted cash transfers, food support, and transportation subsidies for vulnerable citizens.

Civil society organizations have called for greater transparency in how the subsidy savings are being spent. The Socio-Economic Rights and Accountability Project (SERAP) recently demanded a breakdown of the ₦400 billion reportedly disbursed so far, stressing the need for openness to strengthen public confidence.

Despite ongoing criticism, Tinubu maintained that the government’s strategy is focused on long-term national interest and sustainable development. “The benefits may not be immediate for everyone,” he said, “but we are laying the foundation for a more prosperous and self-reliant country.