The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has called for stronger fiscal federalism and better revenue generation, urging Nigeria to diversify its economy to withstand economic shocks.
Oyedele spoke on Wednesday in Owerri, Imo State, while addressing participants at the 2026 National Council on Finance and Economic Development Retreat.
The retreat has the theme, “Strengthening Fiscal Federalism for Equity, Sustainable Development and Economic Resilience in a Volatile Global Economy.”
Oyedele called for a review of Nigeria’s revenue allocation and derivation system, urged the three levels of government to improve accountability and work together.
According to him, Nigeria must move away from an economy that depends on federal allocations and focus more on production, investment and job creation.
“Recent economic reforms, including the removal of fuel subsidy and the unification of the foreign exchange market, have significantly increased revenues available for distribution through the Federation Account,” he said.
Oyedele said monthly Federation Account allocations have grown sharply since 2023, said allocations averaged between N300 billion and N600 billion before 2023.
The minister disclosed that monthly allocations now exceed N2 trillion, citing June 2026 as an example, with the Federation Account Allocation Committee distributing N2.8 trillion to the Federal, State and Local Governments that month.
However, Oyedele warned that higher allocations alone cannot guarantee development, but governments must use the funds to improve infrastructure and public services.
He also listed human capital development and productivity as key areas for investment, urged state governments to increase their Internally Generated Revenue and also attract more investments and create jobs.
Oyedele said states should reduce their dependence on federal allocations, called for responsible borrowing and greater transparency in public finance, warned governments against taking on debts without clear plans to repay them and urged stakeholders to focus on facts and practical solutions during discussions on fiscal federalism.
On his part, the Imo State Governor, represented by his deputy, Chinyere Ekomaru called for stronger fiscal autonomy for states.
Chinyere said states must improve their revenue systems and manage public funds better, warning that Nigeria could no longer depend heavily on oil revenue.
The deputy governor said Imo had digitised its revenue collection system and blocked leakages and increased its IGR.
Chinyere said Imo had also invested in agriculture, tourism, digital economy, power, education, infrastructure and small businesses.
She said these investments would help create jobs and expand opportunities for young people.
Earlier, the Permanent Secretary, Special Duties, Federal Ministry of Finance, Mohammed Sanusi, said the retreat came at an important time as Nigeria implements major economic reforms to strengthen the economy.
Sanusi added that the retreat would give policymakers an opportunity to review key economic issues and urged participants to develop practical measures that would support sustainable growth.
Other officials at the retreat included the Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission, Mohammed Shehu.
The Accountant-General of the Federation, Shamsudeen Ogunjimi, also attended.
Others included the Chairman of the Forum of State Commissioners for Finance, Akintunde Oyebode, and the Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji.
