Tinubu’s reforms drove Nasarawa allocation up 300% to N16bn, says gov

Nasarawa State's monthly federal allocation has dramatically increased, surging from an average of N3.8 billion to N4.5 billion before the removal of fuel subsidies to a current range of N14 billion to N16 billion. Governor Abdullahi Sule credits President Bola Tinubu's economic reforms for this significant financial uplift, stating that the removal of subsidies has freed up substantial resources for all tiers of government.

Sule made these remarks while receiving a delegation in Lafia, explaining that the increase in federal allocations has enabled the state to undertake development projects. He noted that prior to the reforms, the total monthly allocation for the state and its local governments was between N5.7 billion and N7 billion. "With the removal of subsidy today, I can tell you for free, Nasarawa State is receiving an average of N14bn to N16bn every month," he stated.

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I can tell you for free. You are right when you say that in the first four years, everybody knows Nigeria was sharing anywhere between maybe N590bn to about N620bn monthly as total FAAC allocation. For Nasarawa State, what we were getting was anywhere between maybe N3.8bn to N4.5bn for the state, and for the local governments, anywhere between N1.9bn to N2.5bn every month. With the removal of subsidy today, I can tell you for free, Nasarawa State is receiving an average of N14bn to N16bn every month.

The governor emphasized that these reforms, though difficult, were necessary and have provided the subnational governments with much-needed funds for development. He recalled his own experience as governor since 2019, when the state's total allocation was less than N60 billion annually, forcing him to seek a N5 billion bond to build a market. Now, the state is investing approximately N90 billion in new infrastructure, including a flyover, road dualizations, and a stormwater drainage channel, without incurring new debt.

Sule highlighted specific projects such as a combined overhead and underground flyover costing N16.7 billion, the dualization of Akwanga Township Road for N7.1 billion, and an underpass in Akwanga for N6.6 billion. He also mentioned the dualization of the Shendam road, a stormwater drainage channel, the Keffi flyover, and a twin flyover in Karu, noting the positive impact on property values. The governor also credited federal mining policy reforms for enabling local resource utilization.

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That’s why when I say he took the bullet on our behalf, the President took the bullet for all the subnationals for coming out with the reforms that they did. What the President did was to free up resources that the states have been longing for to develop the states. The money was not coming; the money was being consumed by subsidy on petrol and subsidy on foreign exchange.