⚙️ The Numbers Behind the Boast
Addressing the South-West Governors’ Economic Roundtable in Lagos, Sanwo-Olu declared that the federation account now delivers “more liquidity than any period in the last decade.”
According to FAAC’s October bulletin, total distributable revenue hit ₦1.87 trillion, with states receiving ₦619 billion — up from ₦381 billion in October 2024.
“Every state now has oxygen,” he said. “What you do with it will define your legacy.”
🧾 Tinubu’s Fiscal Reset — How It Works
Analysts credit the rebound to Tinubu’s Fiscal Responsibility and Revenue Harmonisation Plan, launched in Q1 2025.
The plan merged multiple remittance streams — oil royalties, solid-mineral dues, customs, and VAT — into a single Revenue Performance Framework (RPF).
Key reforms include:
- Raising state VAT share from 50% to 55%, with LGAs gaining 35%.
- Clearing ₦700 billion in oil-derivation arrears owed to Niger Delta states.
- Redirecting federal IGR to an electronic Treasury Single Account-2.0 for transparency.
“The president understands that economic stability begins at the subnational level,” said economist Ifeanyi Adefarasin.
🧭 Gains and Gripes
- Governors’ Windfall: Monthly allocations up 62% on average.
- Public Scrutiny: Civil groups call for “performance audits” on increased inflows.
- Revenue Boards: Report VAT compliance jump of 37% in Lagos, Rivers, and Kano.
- Labour Concerns: Workers urge wage review to match state liquidity surge.
Yet, some fiscal watchers warn the buoyancy may be temporary if crude benchmarks dip below $80 per barrel.
⚖️ Federalism or Fiscal Dependency?
Critics argue that while Tinubu’s policy improves liquidity, it entrenches dependence on the centre.
Development economist Dr. Nnanna Iroegbu told IDNN.news:
“It’s paradoxical — states are richer but still reliant. Fiscal federalism means self-generation, not bigger cheques from Abuja.”
Others counter that the reforms buy governors breathing space to invest in internal revenue infrastructure.
💼 Who Gains What
- Top Beneficiaries: Lagos, Rivers, Delta, Akwa Ibom Kano.
- Mid-Tier Risers: Ekiti, Niger, and Bauchi see record inflows.
- Private Sector: Contractors report faster payments as cash circulates.
Financial analysts note that FAAC’s new transparency dashboard could attract development finance and credit rating upgrades if sustained.
🎬 Money Talks, Performance Waits
For Tinubu, the fiscal flood is proof of reform working.
For governors, it’s a mirror.
Nigeria’s challenge is no longer who has money — it’s who has management.
This is IDNN.news — Independent. Digital. Uncompromising.
