Tinubu urges states to use ‘higher’ revenues prudently
President Bola Tinubu has urged state governments in the Federation to judiciously utilise their revenues and ensure their administrations prioritise projects that improve the standard of living of the populace. Tinubu,…
The call on states follows the removal of the petrol subsidy and the unification of exchange rate windows, reforms the Tinubu administration has pursued since mid-2023. These measures have boosted monthly allocations from the Federation Account to states and local governments, as higher oil revenue in naira terms and improved remittances from agencies have flowed through the federally collected revenue pool shared among the three tiers of government.
The World Bank has periodically tracked these fiscal gains in its Nigeria Development Update reports, which assess the country's macroeconomic outlook and advise on translating higher government income into tangible improvements for citizens. State governments have faced recurring criticism from economists and civil society groups over weak transparency in how allocations are spent, with concerns often centred on recurrent expenditure, debt servicing and uneven investment in health, education and infrastructure. Both outlets agree on the president's core message—prudent spending to raise living standards—though neither report provides specific figures on how much revenues have risen or details on monitoring mechanisms to ensure compliance by states.