The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said the economic reforms of President Bola Tinubu’s administration have increased monthly allocations from the Federation Account to more than N2 trillion.

Oyedele made this known during the 2026 National Council on Finance and Economic Development (NACOFED) retreat in Owerri, Imo State.

He said monthly Federal Account Allocation Committee (FAAC) disbursements, which previously ranged between N300 billion and N600 billion, had increased significantly following reforms introduced by the Federal Government.

According to him, the removal of fuel subsidy and the unification of the foreign exchange market were among the measures that contributed to higher government revenue and increased funds available for distribution to the Federal Government, states and local governments.

Oyedele said the increased revenue was reflected in the amount shared among the three tiers of government in recent months.

He explained that the higher allocations had strengthened the financial position of state governments, particularly in meeting recurrent obligations such as the payment of workers’ salaries.

However, the minister warned that increased FAAC allocations should not encourage governments to become overly dependent on federal revenue.

He urged state and local governments to use the additional resources to develop infrastructure, improve human capital, support businesses and create an environment capable of attracting investment.

Oyedele also advocated stronger fiscal federalism, saying states must improve their internally generated revenue and develop sustainable economic activities instead of relying mainly on monthly allocations from the Federation Account.

He stressed that Nigeria could not achieve lasting prosperity simply by sharing more money among the different levels of government.

The minister further said the Federal Government had introduced various measures to cushion the impact of its economic reforms on vulnerable Nigerians, including social intervention programmes and the NG-CARES initiative.

The NACOFED retreat, which brought together stakeholders from the Federal Government, states and other institutions, is focused on strengthening Nigeria’s fiscal system and promoting sustainable economic development.

Oyedele urged governments at all levels to take advantage of the improved revenue situation to invest in projects and policies that would strengthen the economy and improve the living conditions of Nigerians.