Emmanuel OchayiThe Federal Government has unveiled projections indicating a 109.74% surge in allocation to states and local government areas, poised to climb from N6.69tn in 2023 to N14.04tn in 2024
These revelations, embedded in the Revised 2024 – 2026 Medium-Term Fiscal Framework, signal a shift in financial disbursements.
President Bola Tinubu, addressing a joint session of the National Assembly while presenting the 2024 budget, emphasized the need for tax and fiscal policy reviews, aiming to elevate the revenue-to-GDP ratio from the current less than 10% to 18% within the administration’s term.
“The target is clear,” Tinubu declared. “We’re committed to bolstering revenue streams and implementing reforms to curb financial leakages.”
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Minister of Finance and Budget Planning, Abubakar Bagudu, echoing similar sentiments, highlighted revenue generation as a pivotal constraint in the country’s fiscal viability.
He underscored ongoing government initiatives aimed at enhancing revenue generation through the review of tax and fiscal policies.
Recent figures showcased by the Ministry of Finance further underlined this upward trajectory, with the allocation to states escalating post-subsidy removal, soaring from an average of N650bn to over N1tn monthly in a span of four months.
“The economic reforms implemented since the inception of this administration have set the tone for transformative steps in our economy,” remarked Mr. Wale Edun, representing the Minister of Finance. “We’ve seen marked improvements in revenue inflow, particularly in the Federation Account.”
The anticipated surge in federal allocation to states and local governments is anticipated to catalyze development at the subnational level, providing a much-needed impetus for progress and growth in regions heavily reliant on these financial allocations.
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