States Record ₦7.1 Trillion Revenue Boost Under Current Administration — Wale Edun
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has announced that Nigerian states and local governments have experienced a remarkable ₦7.1 trillion revenue boost since the first half of 2023. This figure represents a significant leap from the ₦2.8 trillion recorded previously, marking one of the most substantial increases in state finances in recent years. The improvement in fiscal balance, which has grown from 1.8% of GDP to 3.1%, is being attributed to a combination of strategic reforms and direct financial transfers from the federal government to sub-national administrations.
According to Edun, this surge in financial inflow to states is not merely the result of regular statutory allocations, but is largely due to the deliberate repayment of historical deductions owed to state and local governments. These repayments have been made possible through funds generated from the removal of the fuel subsidy, a policy decision that has freed up significant resources for distribution to various tiers of government. The minister emphasized that by redirecting these savings to states and local councils, the administration has empowered them to take greater responsibility for delivering essential services and infrastructure projects. The ₦7.1 trillion in additional funding has already begun to transform state budgets, enabling them to allocate more resources to capital expenditure rather than being constrained by debt obligations or limited internally generated revenue. In the last quarter alone, the federal government disbursed over ₦2 trillion to settle outstanding payments to contractors from the previous year, a move that has re-energized ongoing projects and unlocked stalled infrastructure developments. This injection of funds has also boosted confidence among contractors and investors, signaling a renewed commitment by the government to honour its obligations and maintain a steady flow of capital into the economy.
Edun noted that the next phase of the plan is to ensure timely and structured releases for 2025 capital projects, which he believes will further stimulate economic activity and create new opportunities across the federation. He stressed that states now have more autonomy to implement strategic projects in sectors such as health, education, transportation, and housing, all of which are critical to improving the quality of life for citizens. Beyond the numbers, the ₦7.1 trillion revenue boost also reflects a broader economic philosophy focused on decentralizing financial power and encouraging state-level economic independence. This shift reduces the reliance of states on federal bailouts and emergency interventions, instead promoting a model where sub-nationals are active drivers of growth and development. However, the real test will be in the prudent management of these resources. Analysts have pointed out that without strong accountability mechanisms, the gains from this unprecedented fiscal injection could be undermined by mismanagement or misallocation.
Nonetheless, with clear policy direction and active oversight, this could be the start of a new era where states are financially stronger and better positioned to deliver for their people. The ₦7.1 trillion boost is not just a statistic, it is a potential turning point for Nigeria’s development trajectory, one that could redefine the role of states in national progress if managed with transparency, efficiency, and vision.
