The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has urged state governments to strengthen Internally Generated Revenue, IGR, and reduce reliance on monthly allocations from the Federation Account.*
Speaking on Wednesday at the 2026 National Council on Finance and Economic Development Retreat in Owerri, Imo State, Oyedele said Nigeria must move from an allocation-dependent economy to one driven by production, investment, and job creation.
He spoke on the theme ‘Strengthening Fiscal Federalism for Equity, Sustainable Development and Economic Resilience in a Volatile Global Economy’ and stressed the need for fiscal responsibility, accountability, and cooperation among the three tiers of government.
The minister noted that recent reforms, including fuel subsidy removal and the unification of the foreign exchange market, have significantly increased revenues. Monthly allocations, which averaged between N300 billion and N600 billion before 2023, now exceed N2 trillion. The Federation Account Allocation Committee distributed N2.8 trillion to all levels of government in June 2026.
However, Oyedele cautioned that higher allocations alone would not guarantee development. He said increased revenue must translate into better infrastructure, human capital development, and improved public services.
He called on states to attract investments, create jobs, and grow IGR instead of depending heavily on federal allocations. He also advocated prudent borrowing and greater transparency in public finance, warning against accumulating liabilities without credible repayment plans.
Imo State Governor, Senator Hope Uzodimma, represented by Deputy Governor Mrs. Chinyere Ekomaru, supported the minister’s position, saying continued dependence on oil revenue was no longer sustainable. He highlighted his administration’s efforts to digitize revenue collection, block leakages, and boost IGR through investments in agriculture, digital economy, tourism, power, education, and infrastructure.
Other participants at the retreat included the Chairman of the Revenue Mobilization, Allocation and Fiscal Commission, Dr. Mohammed Shehu; the Accountant-General of the Federation, Dr. Shamsudeen Ogunjimi; and the Executive Chairman of the Nigeria Revenue Service, Dr. Zacch Adedeji.
The Permanent Secretary, Special Duties, Federal Ministry of Finance, Mr. Mohammed Sanusi, described the retreat as timely, coming at a critical period when Nigeria is implementing major economic reforms to strengthen macroeconomic stability and drive sustainable development.
