Nigeria’s Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, has said the Federal Government’s economic reforms have significantly increased the amount of money shared to states and local governments through the Federation Account Allocation Committee (FAAC).
Oyedele said monthly FAAC allocations to the subnational governments have risen to more than N2 trillion, compared with an average of about N300 billion recorded under previous administrations.
He disclosed that the increase was driven by reforms implemented by the President Bola Ahmed Tinubu administration to strengthen government revenues, improve fiscal management and reduce economic leakages.
According to the minister, the growth in allocations has provided state and local governments with substantially more resources to fund infrastructure, public services and other development programmes.
RECORD N2.8TRILLION DISTRIBUTED IN JUNE
Oyedele highlighted June 2026 as a major milestone, revealing that a record N2.8 trillion was distributed through FAAC during the month.
He said the figure reflected the impact of reforms on government revenue and the resources available for distribution among the three tiers of government.
The minister explained that the reforms should not be viewed simply as an increase in the amount of cash available to the Federal Government, but as measures designed to improve the overall fiscal position of the country.
He noted that stronger revenues had enabled the government to reduce some of the pressure that previously forced authorities to rely more heavily on borrowing.
REFORMS BOOST GOVERNMENT RESOURCES
Oyedele has repeatedly defended the administration’s economic reforms, including the removal of the petrol subsidy and changes to the foreign exchange system, arguing that they were necessary to address longstanding fiscal challenges.
While acknowledging that the reforms created significant short-term economic difficulties for Nigerians, the minister maintained that they were intended to place the economy on a more sustainable path.
He said the increase in FAAC distributions demonstrated one of the effects of the reforms, particularly in terms of improving resources available to states and local governments.
The minister’s remarks come amid continued debate over the impact of the Tinubu administration’s economic policies, with the government highlighting increased revenues while Nigerians continue to contend with high living costs and economic pressures.
Oyedele maintained that the government would continue implementing measures aimed at strengthening public finances and creating a more sustainable economic environment.
