The Minister of Finance and Coordinating Minister of the Economy, Prof. Taiwo Oyedele, has said that federal allocations alone cannot guarantee prosperity for states. He recently had his say while speaking at the 2026 National Council on Finance and Economic Development, NACOFED, conference in Owerri, Imo State.
According to him, there is a clear need for states to look beyond federal allocations and develop their productive capacities to achieve sustainable economic development.
He concluded by urging governors to develop sustainable sources of revenue and drive economic growth.
His words, “The figures tell a financing story, not simply a savings story.
The N15.8 trillion commonly described as subsidy savings was not retained by the FG alone. It was shared across the federal, state and local governments, as well as other statutory beneficiaries.
When combined with N3.12 trillion in other incremental revenues and N11.85 trillion in incremental borrowing, the FG had about N20.4 trillion in incremental resources. Over the same period, additional expenditure amounted to approximately N30.64 trillion. Subsidy removal, therefore, did not create one large pool of cash available to the federal government. It simply reduced a major fiscal burden and the amount of borrowing that would otherwise have been required.
Subsidy removal resulted in less borrowing than would otherwise have been required, rather than eliminating the need to borrow.”
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