Minister of Finance and Coordinating Minister of the Economy, Prof. Taiwo Oyedele, says the Federal Government’s economic reforms have pushed the monthly Federal Allocation to over N2 trillion from an average of N300 billion in past administrations.
Oyedele disclosed the fiscal shift on Monday in Owerri, while declaring open the 2026 National Council on Finance and Economic Development retreat.
He expressed delight that the positive development would help to boost national economic growth.
The News Agency of Nigeria (NAN) reports that the theme of the three-day retreat is “Strengthening Fiscal Federalism for Equity, Sustainable Development and Economic Resilience in a Volatile Global Economy.”
The minister said that President Bola Tinubu’s economic decisions, including fuel subsidy removal and foreign exchange unification, triggered a surge in revenue, culminating in a record N2.8 trillion disbursement in June 2026.
“For nearly 30 years, it was common for many states to struggle to pay salaries,” Oyedele said.
According to him, no state currently struggles with salary obligations under the new arrangement.
However, the minister warned state governors that higher revenues alone did not guarantee prosperity without strategic investments in local productivity, infrastructure, human capital, and basic public services.
He challenged state and local governments to look beyond monthly oil allocations by aggressively expanding their internally generated revenue bases to weather volatile global economic pressures.
“Ultimately, the federation cannot share its way into prosperity,” Oyedele said.
He, therefore, advised states to transform into active economic platforms, capable of attracting investment, supporting business, and driving job creation.
The minister called for an urgent review of the nation’s allocation formulas to ensure equity across all the 774 Local Government Areas, while promoting fiscal responsibility and debt sustainability frameworks.
He said the Federal Government had expanded targeted interventions, including cash transfer to 15 million vulnerable households and the NG-CARES programme, to cushion the effects of economic reforms on vulnerable Nigerians.
In his speech, Gov. Hope Uzodimma, represented by his deputy, Mrs Chinyere Ekomaru, commended the president for his visionary leadership and commitment to fiscal reforms that were repositioning the nation’s economy.
“Economies are under immense pressure. In Nigeria, states and local governments bear the direct responsibility of serving the people.
“Yet, we face challenges in revenue mobilisation and rising demands from citizens in many critical sectors.
“Solution, however, lies in strengthening physical federalism. States must be empowered to generate revenue.
“Allocations must be equitable and must be built with resilience through diversification and prudent management of available resources,” he said.
Earlier, the Permanent Secretary, Federal Ministry of Finance, Mr Raymond Omachi, said the retreat was designed to generate practical solutions to Nigeria’s fiscal and economic challenges.
The forum brought together critical stakeholders, including the Revenue Mobilisation Allocation and Fiscal Commission, Office of the Accountant-General of the Federation, state Ministries of Finance, CBN, NNPC Ltd., among others.
The retreat is expected to produce recommendations on revenue mobilisation, fiscal responsibility, debt sustainability, economic diversification and improved resource allocation.
NAN reports that participants are expected to chart a new fiscal direction anchored on productivity, accountability, equity and shared responsibility across the three tiers of government.
(NAN)
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