Former presidential aide and Ambassador-Designate to Mexico, Mr. Reno Omokri, has outlined what he described as the major areas where funds saved from the removal of fuel subsidy by President Bola Ahmed Tinubu are being invested.
In a statement he posted on social media, Omokri said the decision to end the fuel subsidy regime has enabled the Federal Government to channel resources into strengthening foreign reserves, increasing allocations to states, funding development commissions, supporting student loans, and executing major infrastructure projects across the country.
According to him, one of the most significant gains has been the growth in Nigeria’s foreign reserves. He noted that a report by JPMorgan Chase in April 2023 indicated that the country’s net foreign reserves stood at about $3.7 billion shortly before the transition from the administration of former President Muhammadu Buhari to the Tinubu government.
Omokri stated that the reserves have since risen to over $50 billion, which he said would help the country withstand future economic shocks, finance critical imports, and strengthen its creditworthiness.
He also highlighted increased revenue allocations to states through the Federation Account Allocation Committee (FAAC), saying monthly distributions to the three tiers of government have risen substantially since the removal of fuel subsidy.
Citing figures from March 2022 and March 2026, Omokri said FAAC disbursements increased from about ₦725.6 billion to more than ₦2 trillion, a development he attributed to reforms introduced by the Tinubu administration.
The former presidential aide further pointed to the establishment and funding of development commissions across the six geopolitical zones. He said commissions serving the North-West, North-Central, North-East, South-West, South-East and the Niger Delta are now receiving significant federal support to drive regional development.
On education, Omokri said more than one million indigent Nigerian students are benefiting from loans provided through the Nigerian Education Loan Fund (NELFUND) initiative. He estimated that about ₦300 billion has been committed to the scheme under the administration’s Renewed Hope Agenda.
He also cited ongoing infrastructure projects as evidence of how subsidy savings are being deployed. Among the projects mentioned are the Lagos-Calabar Coastal Highway, the Illela-Sokoto-Badagry Superhighway, and the Trans-Saharan Road, which he said are designed to improve connectivity across the country’s geopolitical zones.
Omokri argued that the increased funding available to states has helped many sub-national governments clear salary obligations and improve service delivery.
He further argued that Nigerian universities have witnessed greater industrial stability under the current administration, while students now have access to interest-free educational loans.
The ambassador-designate maintained that the benefits of subsidy removal are visible in ongoing investments in infrastructure, education, regional development and economic stability.
He therefore dismissed claims that Nigerians cannot account for the savings generated from the subsidy removal policy, insisting that the funds are being redirected towards programmes and projects aimed at improving citizens’ welfare and boosting national development.
