Nigeria’s monthly revenue-sharing figures have crossed a new threshold under President Bola Tinubu’s administration, with Finance Minister and Coordinating Minister for the Economy, Taiwo Oyedele, attributing the increase to reforms introduced by the Federal Government.
Oyedele said the Federation Account Allocation Committee, FAAC, now distributes more than ₦2 trillion to the three tiers of Government in a typical month, compared with an average of about ₦300 billion recorded during previous administrations.
The Minister disclosed this on Monday, August 17, 2026, in Owerri, Imo State, while declaring open the 2026 National Council on Finance and Economic Development retreat.
The three-day meeting, attended by key stakeholders in Nigeria’s fiscal and economic management system, is focused on finding ways to strengthen fiscal federalism and improve the ability of governments at all levels to withstand economic pressures.
The theme of the retreat is, “Strengthening Fiscal Federalism for Equity, Sustainable Development and Economic Resilience in a Volatile Global Economy.”
Oyedele said the sharp rise in FAAC distributions was largely connected to major economic decisions taken by the Tinubu administration, particularly the removal of petrol subsidy and the unification of the foreign exchange market.
According to him, those measures changed the structure of Government revenue and created more resources for distribution among the Federal Government, states and local governments.
He pointed to June 2026 as a major example of the revenue increase, saying FAAC recorded a monthly disbursement of ₦2.8 trillion.
The Minister described the development as a positive shift in the country’s fiscal position, saying increased revenue could provide governments with greater capacity to fund development and improve public services.
However, Oyedele cautioned that higher allocations should not be mistaken for automatic economic prosperity.
He urged state and local governments to use the additional resources to increase productivity, develop infrastructure, improve human capital and strengthen basic services rather than relying primarily on their monthly FAAC receipts.
His warning comes against the backdrop of Nigeria’s long-running dependence on federally shared revenue, particularly among states with relatively weak internally generated revenue.
Oyedele argued that governments at the subnational level must begin to build stronger local economies capable of attracting private investment, expanding businesses and creating employment.
He challenged governors to look beyond the monthly allocation cycle and develop strategies that would allow their states to generate sustainable revenue irrespective of fluctuations in the global economy.
The Minister said the country could not achieve lasting prosperity simply by increasing the amount of money shared among the three tiers of government.
He therefore called on states and local governments to transform themselves into economic platforms that support investment, enterprise and job creation.
The rise in FAAC allocations under Tinubu has previously been linked to the administration’s decision to remove petrol subsidy and change the foreign-exchange regime. Similar reports have shown that FAAC distributions moved beyond ₦2 trillion in 2025, demonstrating that the increase was already becoming a recurring feature of Nigeria’s fiscal landscape.
The Minister also called for a review of Nigeria’s revenue-sharing arrangements to promote greater fairness across the federation.
He said the allocation formula should be examined with particular attention to the 774 local government areas, while fiscal responsibility and debt sustainability should remain central to the process.
The call is significant because the distribution of federally collected revenue remains one of the most important financial lifelines for states and local governments across Nigeria.
While increased allocations provide additional fiscal space, Oyedele said governments must also ensure that the money is deployed responsibly and produces measurable improvements in the lives of citizens.
He also highlighted measures introduced by the Federal Government to reduce the impact of economic reforms on vulnerable Nigerians.
Among the interventions he mentioned were cash transfers targeting 15 million vulnerable households and the NG-CARES programme, which is designed to support livelihoods and communities affected by economic difficulties.
Oyedele’s remarks came as participants at the Owerri retreat examined wider questions surrounding Nigeria’s fiscal structure, including revenue mobilisation, debt management, economic diversification and the distribution of resources.
The Minister’s position is that the increase in FAAC revenue creates an opportunity for states to move away from dependence on federal allocations and develop stronger independent revenue bases.
Governor Hope Uzodimma of Imo State, represented at the event by his Deputy, Chinyere Ekomaru, also supported the push for stronger fiscal federalism.
She said states and local governments remained closest to the people and therefore needed sufficient resources to meet growing demands for infrastructure and essential public services.
According to her, the solution lies in empowering states to generate more revenue, ensuring that allocations are equitable and encouraging governments to manage available resources prudently.
She also stressed the importance of diversification and resilience at a time when economies around the world are facing significant pressure.
Earlier, the Permanent Secretary of the Federal Ministry of Finance, Raymond Omachi, said the retreat was convened to develop practical responses to Nigeria’s fiscal and economic challenges.
The gathering brought together representatives of important institutions involved in managing the country’s finances, including the Revenue Mobilisation Allocation and Fiscal Commission, the Office of the Accountant-General of the Federation, state ministries of finance, the Central Bank of Nigeria and the Nigerian National Petroleum Company Limited.
Discussions are expected to produce recommendations covering revenue mobilisation, fiscal responsibility, debt sustainability, economic diversification and more effective resource allocation.
The latest figures add to the broader debate over whether Nigeria’s improved revenue collections are translating into better living conditions for citizens.
While FAAC distributions above ₦2 trillion provide states and local governments with significantly more resources than they previously received, the effectiveness of the reforms will ultimately depend on how governments convert the additional funds into infrastructure, jobs, public services and productive investment.
Oyedele’s message was therefore two-sided: the Federal Government’s reforms have expanded the resources available to the federation, but the responsibility for turning those resources into sustainable development now rests heavily on all three tiers of government.
For the states in particular, the challenge is to use the improved fiscal space as a foundation for building stronger local economies rather than treating increased monthly allocations as an end in themselves.
The development also reinforces the growing importance of fiscal federalism in Nigeria’s economic debate, with calls intensifying for a system that gives states and local governments greater capacity to raise revenue, manage resources and drive development within their respective jurisdictions.
As the Owerri retreat continues, stakeholders are expected to focus on how Nigeria can maintain stronger revenue performance while ensuring that the benefits of increased Government income are translated into tangible economic opportunities and improved public services nationwide.