Tinubu’s reforms push FAAC allocations above N2trn monthly – Oyedele

Nigeria's monthly federal allocations have dramatically increased to over N2 trillion, a significant jump from the previous average of N300 billion, Finance Minister Taiwo Oyedele announced. This fiscal shift is attributed to President Bola Tinubu's economic reforms, including the removal of fuel subsidies and the unification of foreign exchange rates.

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

Oyedele highlighted that this surge in revenue has eliminated the long-standing challenge of states struggling to pay salaries, a situation that persisted for nearly 30 years. The minister noted a record disbursement of N2.8 trillion in June 2026 as evidence of the reforms' success.

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Ultimately, the federation cannot share its way into prosperity.

However, Oyedele cautioned state governors against complacency, emphasizing that increased allocations do not automatically guarantee prosperity. He stressed the importance of strategic investments in local productivity, infrastructure, human capital, and essential public services. The minister urged state and local governments to diversify their revenue streams beyond monthly oil allocations and actively attract investment to drive job creation.

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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.

Governor Hope Uzodimma, represented by his deputy, commended the president's reforms, acknowledging the immense pressure on economies and the rising demands from citizens. He echoed the minister's call for strengthening fiscal federalism, empowering states to generate revenue, and ensuring equitable allocations built on diversification and prudent resource management.

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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.