President Tinubu on Tripled State Allocations Post-Subsidy

Gains of Fuel Subsidy Removal: A Governor’s Perspective

President Bola Tinubu has asserted that the removal of fuel subsidies has significantly increased financial allocations to Nigerian states. Speaking at the All Progressives Congress (APC) National Caucus meeting in Abuja on February 25, 2025, he stated, “I can beat my chest and say that each governor knows that their allocations to the states have tripled.”

This policy change has reportedly led to a substantial rise in the revenue shared among federal, state, and local governments. Data indicates that the monthly allocation from the Federation Account Allocation Committee (FAAC) increased from ₦760 billion in 2023 to ₦3.2 trillion in 2024.

The President emphasized that the previous subsidy system resulted in an annual loss of $7.5 billion for Nigeria, a situation he described as unsustainable. He urged citizens to hold state governors accountable for the effective utilization of the increased revenues, highlighting that these funds are crucial for human capital development.

While the increased allocations present opportunities for development, there have been concerns about the actual impact at the grassroots level. Reports suggest that despite the surge in funds, some states have not effectively utilized the additional resources for tangible improvements in public services and infrastructure.

The removal of fuel subsidies has also led to significant economic adjustments for Nigerians. Fuel prices have tripled, resulting in increased transportation costs and a higher cost of living. This has sparked public protests and debates over the sustainability and social impact of the subsidy removal policy.