Governor Abdullahi Sule of Nasarawa State yesterday said several states were steered away from bankruptcy as a result of improved revenue inflows under the administration of Bola Ahmed Tinubu. Sule credited the increased allocations to states from the Federation Account to key policy decisions taken by the President, particularly the removal of fuel subsidy and the unification of the foreign exchange rate.
According to the governor, the reforms, though difficult, have strengthened public finances and enabled subnational governments to meet their obligations more effectively. He commended President Tinubu for what he described as bold and courageous leadership, noting that the decisions were tough measures that many world leaders had avoided due to their political sensitivity. “Mr. President took very hard decisions in the interest of the country’s long-term stability,” Sule said, adding that the reforms were already yielding tangible benefits for states.
The governor explained that the removal of fuel subsidy has significantly increased funds accruing to the Federation Account, which are subsequently shared among the federal, state and local governments. He noted that the strengthened revenue profile has enhanced the ability of states to execute projects and pay salaries without excessive borrowing. He also pointed to efforts by the Tinubu administration to strengthen federal revenue-generating agencies and block financial leakages, describing the measures as critical to boosting national income.
Recently, during a meeting with governors in Abuja, President Tinubu urged state leaders to be prudent in their spending and “wet the ground,” a remark interpreted as a call for governors to invest resources in impactful grassroots development and visible infrastructure projects. Governor Sule said the President’s advice underscored the need for fiscal discipline and responsible governance at the subnational level, stressing that increased revenue must translate into improved living conditions for citizens.
He reaffirmed the commitment of the Nasarawa State Government to prudent management of public funds and to aligning its development priorities with the broader economic reform agenda of the Federal Government. Analysts say the ongoing reforms, while challenging in the short term, are aimed at stabilising Nigeria’s economy and ensuring more sustainable revenue distribution across all tiers of government.
