States Get N7.1 Trillion Allocation Since Tinubu Took Office – Edun

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has disclosed that state governments have received a cumulative N7.1 trillion in allocations from the Federation Account since the beginning of the current administration in May 2023. Edun said the figure reflects the government’s commitment to fiscal federalism and equitable revenue sharing among the three tiers of government.

Speaking during a briefing in Abuja on Tuesday, the minister explained that the disbursements were made through the Federation Accounts Allocation Committee (FAAC) over a period of 14 months. According to him, the consistent and timely remittances demonstrate the administration’s efforts to support states in delivering public services, funding infrastructure, and implementing social programmes for citizens.

Edun noted that the amount released to states under President Bola Tinubu’s leadership represents a significant boost compared to similar periods in the past, partly due to improved revenue inflows from oil and non-oil sectors, exchange rate reforms, and stricter revenue collection measures. He added that the federal government’s reforms in the oil and gas sector, particularly measures to curb crude theft and improve output, have translated into higher revenues for distribution.

The finance minister emphasised that the administration is determined to ensure that the states have the resources they need to meet development goals and respond to local challenges. He urged governors to channel the funds into projects that directly benefit their populations, stressing that prudent management and accountability are essential to achieving sustainable growth. “The resources are being provided to empower states to invest in education, healthcare, infrastructure, and job creation. The people must feel the impact of these funds,” Edun said.

He also pointed out that the federal government has settled over N2 trillion in outstanding capital budget arrears inherited from previous years, which he said has eased the financial burden on states and contractors. This, according to him, has contributed to renewed confidence in the fiscal management of the country and improved liquidity for ongoing projects nationwide.

Edun explained that the increase in allocations has been supported by economic policy reforms introduced under the Renewed Hope Agenda, including the removal of petrol subsidy and exchange rate unification, both of which have expanded the fiscal space available for critical spending. He said these measures, while challenging initially, are designed to lay the foundation for long-term macroeconomic stability and sustainable growth.

The minister reiterated that the administration is committed to transparency in revenue allocation, noting that FAAC meetings and disbursement details are regularly published for public scrutiny. He assured that the government will continue to work with state governments to strengthen internally generated revenue (IGR) capacities so that states can rely less on federal transfers over time.

Economic analysts have observed that the N7.1 trillion disbursement reflects both the inflationary pressures that have increased nominal revenues and the government’s success in plugging some revenue leakages. They, however, warn that without effective utilisation of the funds at the state level, the impact on poverty reduction and economic development could be limited.

The Nigerian Governors’ Forum (NGF) has acknowledged the improved flow of funds, with some state leaders noting that higher allocations have enabled them to accelerate ongoing infrastructure projects, settle salary arrears, and expand social welfare programmes. However, civil society organisations have called for more transparency in how state governments spend their share of the allocations, citing concerns about mismanagement and the lack of measurable development outcomes in some states.

The disbursement comes at a time when the federal government is pushing for reforms in critical sectors, including power, transport, agriculture, and manufacturing, aimed at driving industrialisation and job creation. By ensuring a steady flow of resources to the states, the administration hopes to encourage more locally driven initiatives that can contribute to the national economy.

Edun also highlighted the government’s ongoing discussions with development partners and the private sector to attract more investments into infrastructure and productive sectors, which he said will complement the revenue allocations and help states achieve faster growth. He stressed that fiscal discipline, combined with targeted investments, is key to ensuring that the benefits of increased revenue flows are felt across the country.

The minister further reassured Nigerians that the federal government remains focused on restoring economic stability, bringing down inflation, and fostering an environment that supports entrepreneurship and innovation. He said the administration’s fiscal strategy is to balance the need for immediate relief for citizens with the imperative of building a stronger and more diversified economy for the future.

As the administration marks over a year in office, the N7.1 trillion allocation to states stands as one of the clearest indicators of its revenue distribution record so far. Whether these resources translate into improved living standards will depend largely on the efficiency, transparency, and developmental priorities of the state governments receiving them.