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Northern States See Revenue Windfall Under Tinubu, Says Budget Minister

Minister of Budget and Economic Planning, Senator Abubakar Bagudu, has stated that northern states have witnessed significant fiscal gains under President Bola Tinubu’s administration, as federal allocations to states rose by 116.17 per cent between May 2023 and June 2025.

Speaking at a two-day interactive session in Kaduna hosted by the Sir Ahmadu Bello Memorial Foundation (SABMF), Bagudu revealed that total statutory and VAT allocations to states and local governments increased from ₦458.81 billion in May 2023 to ₦991.81 billion in June 2025. He noted that this figure excludes EMT levies, foreign exchange gains, and special augmentations.

The session, titled “Assessing Electoral Promises: Fostering Government-Citizen Engagement for National Unity,” aimed to evaluate President Tinubu’s electoral pledges. It brought together northern ministers, state governors, and over 60 federal political appointees.

Bagudu said the surge in allocation was largely due to the federal government’s removal of fuel subsidies and broader economic reforms. “By ending the fuel subsidy, President Tinubu made a hard but necessary decision, freeing trillions of naira and increasing federal allocations by over 340 per cent,” he said.

Gombe and Kaduna states saw sharp increases in allocations, rising from ₦6.69 billion to ₦24.91 billion (272.35%) and ₦11.94 billion to ₦42.01 billion (251.84%) respectively. Regionally, North-central states saw a 145 per cent rise, North-east 149 per cent, and North-west 143 per cent.

Bagudu also disclosed a substantial decline in subnational debt. The debt of all 36 states and the FCT fell by 33.4 per cent from ₦5.8 trillion to ₦3.8 trillion. Northern states recorded an even greater reduction of 42.06 per cent, from ₦1.98 trillion to ₦1.14 trillion.

He highlighted ongoing federal projects in the North, including major highways, gas pipelines, and rail infrastructure, as evidence of Tinubu’s commitment to equitable development.

A communique issued at the end of the meeting, signed by SABMF Director General, Abubakar Umar, praised the administration’s achievements in revenue distribution, infrastructure, healthcare, and social inclusion. However, it also called for greater investment in education to tackle the persistent problem of out-of-school children.

The communique commended Tinubu for fostering transparency and fairness and advocated for sustained citizen engagement, collaboration with civil society, and responsible media practices to strengthen national unity.

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