Monthly allocations to Nigeria’s three tiers of government have crossed the N2 trillion mark, up from an average of N300 billion to N600 billion under previous administrations, due to key macro-economic policy reforms.
​The Minister of Finance and Coordinating Minister of the Economy, Prof. Taiwo Oyedele, revealed this during a joint fiscal briefing and policy dialogue with sub-national leaders on Monday morning, August 17, 2026, at the Transcorp Hilton, Abuja.
​Speaking at the summit, organized to evaluate fiscal federalism and economic sustainability, Oyedele stated that bold policy shifts, specifically the removal of the petrol subsidy and the unification of foreign exchange windows have significantly expanded the revenue base.
Monthly distributions handled by the Federation Account Allocation Committee (FAAC) rose to N2.8 trillion in recent disbursements, compared to legacy averages of N300 billion.
Oyedele warned that higher allocations must directly translate into improved infrastructure, better public healthcare, quality education, and heightened productivity rather than administrative waste.
The minister urged state governments to boost Internally Generated Revenue (IGR) and manage public debt prudently, warning against acquiring unserviceable liabilities without clear repayment structures.
​”Recent economic reforms, including the removal of fuel subsidy and the unification of the foreign exchange market, have significantly increased revenues available for distribution,” Oyedele noted during his address.
However, increased revenue is not the end goal. It must translate into tangible social welfare, human capital development, and economic opportunities for citizens.”
​Addressing participants alongside the minister, the Governor of Imo State and Chairman of the Progressive Governors Forum, Hope Uzodimma, endorsed the Federal Government’s reform trajectory while advocating deeper structural support for state-level diversification.
​Ministry spokespersons confirmed that the Federal Ministry of Finance will continue working closely with state commissioners of finance to implement framework guidelines aimed at ensuring transparency in spending the increased allocations.
