By Emma Ujah, Abuja Bureau Chief & Emmanuel Iheaka
The Minister of Finance and Coordinating Minister of the Economy, Prof. Taiwo Oyedele, has said federal allocations alone cannot guarantee prosperity for states, urging them to develop sustainable sources of revenue and drive economic growth.
He also said Nigeria recorded estimated savings of N15.8 trillion from the removal of fuel subsidy and the liberalisation of the foreign exchange market between June 2023 and December 2025, but insisted that the reforms did not leave the Federal Government (FG) with a huge pool of cash as widely believed.
The minister equally said the Federal Government’s wage bill was much more than that savings received from subsidy removal, even as he insisted that the reforms of the government has helped to reduce borrowing burden, Speaking at the 2026 National Council on Finance and Economic Development, NACOFED, conference in Owerri, Imo State, yesterday, Oyedele stressed the need for states to look beyond federal allocations and develop their productive capacities to achieve sustainable economic development. He called for stronger fiscal federalism, improved revenue generation and economic diversification to strengthen Nigeria’s resilience to economic shocks. Nigeria must move from an allocationdependent economy to one driven by production, investment and job creation,” he stated. According to him, recent economic reforms , including the removal of fuel subsidy and the unification of the foreign exchange market, have increased tremendously the revenue available for distribution through the federation account. He said monthly federation account allocation, which was between N300 billion and N600 billion before 2023, is now above N2 trillion.
