The Federal Government, under the leadership of President Tinubu, has transferred a staggering ₦7.1 trillion to state governments since the first half of 2023, signaling a significant fiscal boost for subnational investments. This revelation was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a press briefing in Abuja.
Edun highlighted that this figure includes both statutory allocations and refunds of previous deductions—regular payments the states are entitled to receive. “This has bolstered state finances, raising their combined fiscal balance from ₦2.8 trillion to ₦7.1 trillion, increasing from 1.8% to 3.1% of GDP,” he said.
The added financial resources have largely been channeled into capital expenditure, enabling state governments to invest more robustly in infrastructure, education, healthcare, and other developmental areas.
In recent months, the FG has also paid out over ₦2 trillion to contractors, clearing outstanding capital budget obligations from the previous year. As Edun indicated, the focus is now shifting to 2025 capital releases.
The fiscal improvements are part of a broader set of reforms under the current administration aimed at economic stabilization:
Gross revenues in the first half of 2025 reached 37.4% of the government’s revenue target.
Nigeria’s debt-to-GDP ratio has dropped sharply from 52.1% to 38.8% post-GDP rebasing.
This fiscal development marks a turning point for state-level development, granting governors and local leaders more budgetary flexibility to drive growth and improve livelihoods across the country.
