Minister of Budget and Economic Planning, Senator Abubakar Bagudu, yesterday said the total net statutory revenue and Value Added Tax (VAT) allocation to states and local governments increased to N991.81 billion in June 2025, from N458.81 billion in May 2023. Bagudu said this reflected an increase of N533 billion or 116.17 per cent across the federation.
He stressed that the figure excluded Electronic Money Transfer (EMT) levy, FX gains, and augmentations received by states.
The minister said the north made more significant economic progress under President Bola Tinubu, leading to massive debt reduction by the states.
Bagudu spoke in Kaduna during a presentation at a two-day interactive session on government-citizen engagement, with the theme, “Assessing Electoral Promises: Fostering Government-Citizen Engagement for National Unity.”
The session was organised by the Sir Ahmadu Bello Memorial Foundation (SABMF).
The minister’s clarification came against the backdrop of recent allegations of infrastructural bias levelled against the president by some northern politicians.
The foundation’s engagement was to evaluate Tinubu’s election promises to its members. It attracted key northern ministers, including Minister of Information and National Orientation, Mr Mohammed Idris; Minister of Defence, Mr Mohammed Badaru; and Minister of Agriculture and Food Security, Senator Abubakar Kyari; as well as National Security Adviser (NSA), Mallam Nuhu Ribadu.
The engagement, which commenced on Tuesday, was attended by over 60 northern federal political appointees, including the Secretary to the Government of the Federation (SGF), Senator George Akume, who led the delegation of ministers and heads of some ministries, departments and agencies; northern state governors; and thought leaders in the region, particularly Arewa Consultative Forum (ACF).
Bagudu said the president’s bold economic reforms had increased revenue for the states, even as their debts had fallen, freeing up more resources for social and infrastructural development.
He stated that the revenue situation had greatly benefited the 19 northern states, whose federally-allocated revenue had increased significantly since Tinubu took office on May 29, 2023.
According to the minister, the significant increase in allocation was mainly due to the federal government’s bold reforms, including the removal of the fuel subsidy.
He stated that although the reforms caused some short-term pains, the fiscal space created allowed for direct transfers of more oil revenues to the Federation Account, thereby increasing statutory allocations to subnational governments.
He said, “By ending the fuel subsidy, President Tinubu made a hard but necessary call—liberating trillions of naira to expand federal allocations by over 340 per cent. States now have the means to invest in their future.”
Bagudu stated that while every state in the federation recorded significant increases in monthly allocations, the northern states received a substantial raise.
Bagudu cited Gombe State, which he said had the sharpest rise, from N6.69 billion in May 2023 to N24.91 billion in 2025, amounting to a 272.35 per cent increase. He also referenced Kaduna State, whose allocation increased from N11.94 billion to N42.01 billion, a rise of N30.07 billion, and 251.84 per cent leap.
According to him, a regional breakdown of the benefits to the north showed that North-central’s share of revenue increased by 145 per cent, North-east by 149 per cent, and North-west by 143 per cent.
“These show how removing subsidies and enhancing revenue-sharing mechanisms have directly benefited State Governments, enabling them to fund their development priorities,” the minister stated.
Bagudu informed the audience that the fiscal position of subnational governments had also improved due to a significant reduction in domestic debt, made possible by the availability of additional funds from the Federation Account.
He explained that the debt portfolio of the 36 states and Abuja was reduced by 33.4 per cent, from N5.8 trillion to N3.8 trillion, under the president’s deft financial engineering. Isolating the north’s share of this, the minister stated that the region’s 19 states experienced a 42.06 per cent reduction, from N1.98 trillion to N1.14 trillion during the period.
He added, “These results demonstrate the tangible benefits of macro-fiscal reforms. The Renewed Hope Agenda is delivering real value to citizens through improved subnational fiscal capacity. The Tinubu administration at the centre remains committed to fiscal transparency, equitable distribution, and continued collaboration with states and LGAs.”
He emphasised that the president’s administration had demonstrated a comprehensive and strategic approach to addressing the economic, social, and governance challenges in northern Nigeria.
Bagudu said, “By implementing bold reforms, investing in critical infrastructure, empowering local governments, and prioritising security and social welfare, the administration is working to create an environment conducive to sustainable development and improved quality of life for the people of the region.”
Bagudu buttressed his submission by citing key infrastructural projects of the federal government in the north, including the Sokoto-Badagry Superhighway, the dualisation of Kano-Maiduguri Road, Sokoto-Gusau-Funtua-Zaria Highway, Abuja-Keffi-Makurdi Road, Ilorin-Jebba-Minna Road, Abuja-Lokoja Road, and Kano-Katsina Road.
Other road projects he mentioned included Abuja-Kaduna-Kano Expressway, Malando-Garin Baka-Ngaski-Warra Road, Bid-Zungeru-Kagara Road, Gombe-Biu Road, Yola-Numan-Jalingo Road, Kaduna-Kano Railway, Light Rail Projects in Kaduna, Kano, and FCT, and AKK Gas Pipeline.
(FROM: THISDAY)
