By Aderonke Oni

Taiwo Oyedele, minister of finance and coordinating minister of the economy, says Nigeria’s economic reforms have increased monthly federal allocation to states and local governments to more than N2 trillion, from an average of N300 billion under past administrations.

According to NAN, Oyedele spoke on Monday in Owerri, Imo state, while declaring open the 2026 national council on finance and economic development retreat.

He said the increase in revenue followed economic decisions by President Bola Tinubu’s administration, including the removal of petrol subsidy and the unification of the foreign exchange (FX) market.

The minister said the reforms culminated in a record N2.8 trillion allocation in June 2026.

“For nearly 30 years, it was common for many states to struggle to pay salaries,” Oyedele said.

“No state currently struggles with salary obligations under the new arrangement.”

The minister, however, warned state governors that higher revenues alone would not guarantee prosperity without strategic investments in local productivity, infrastructure, human capital, and basic public services.

He urged states and local governments to look beyond monthly oil allocations by expanding their internally generated revenue bases to weather volatile global economic pressures.

Oyedele also advised states to transform into active economic platforms capable of attracting investment, supporting businesses, and creating jobs.

He called for an urgent review of the country’s revenue allocation formulas to ensure equity across the 774 local government areas, while promoting fiscal responsibility and debt sustainability frameworks.

The minister said the federal government had expanded targeted interventions, including cash transfers to 15 million vulnerable households and the NG-CARES programme, to cushion the impact of economic reforms on vulnerable Nigerians.

‘STATES MUST BE EMPOWERED TO GENERATE REVENUE’

In his speech, Hope Uzodimma, Imo governor, commended Tinubu for what he described as visionary leadership and fiscal reforms aimed at repositioning the economy.

The governor, represented by Chinyere Ekomaru, his deputy, said states and local governments face increasing demands for public services amid challenges in revenue mobilisation.

“Economies are under immense pressure. In Nigeria, states and local governments bear the direct responsibility of serving the people,” Uzodimma said.

“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.”

He said revenue allocations should be distributed fairly, while states should strengthen their economies through diversification and prudent management of available resources.

Source: TheCable