Allocation to states have increased by over 111 per cent, Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun said yesterday.
He said: ‘States are now awash with cash’, adding that the additional funds empower states to drive growth and service delivery at the sub-national level.
Speaking during a session titled: ‘The Reform Imperative: Building a Prosperous and Inclusive Nigeria by 2030’ at the ongoing 31st Nigerian Economic Summit (#NES31) in Abuja, Edun identified exchange rate unification and fuel subsidy removal as the most significant reforms, freeing up about five per cent of Nigeria’s GDP into the Federation Account.
The minister said the government had reached an agreement with the National Assembly to ensure timely budget execution and restore adherence to the normal fiscal calendar.
He said: ‘No more extensions of budget into the next year, which has created so much confusion in the system.
‘We have talked to the National Assembly and agreed to restore normalcy in that space.’
The minister explained that consistent and disciplined budget implementation is key to transparency, better project delivery, and credible public expenditure tracking.
Budgets 2024 and 2025 are simultaneously running and there is the likelihood of the extension of Budget 2025 till 2026 given the late commencement of its implementation.
On debt management, Edun said the government is adopting a new borrowing mix to reduce exposure to Eurobonds and other external loans.
‘The government will make greater use of Sukuk, green bonds, and diaspora bonds instead of Eurobonds,’ he said.
He noted that this strategy would expand domestic investment participation while aligning debt issuance with Nigeria’s sustainable development goals.
Edun also said that fiscal transparency has significantly improved, revealing that ‘it was not until August 1 this year that the Federal Government had full visibility of its accounts with the Central Bank of Nigeria (CBN).’
He added: ‘We are determined to bring all Federal Government funds into visibility. There is a lot of government money lying outside the CBN.’
To strengthen financial accountability, Edun said a new federal billing system had been launched to track payments for goods and services.
The system, he said, ensures that every transaction is traceable and accurately captured.
On inflation, the minister said government interventions began with deliberate fiscal policy adjustments and smarter spending priorities.
DMO: Focus on revenue, not just debt size
Director-General of the Debt Management Office (DMO), Ms. Patience Oniha, said that Nigeria’s public debt level remains sustainable, stressing that the real challenge lies in revenue generation, not debt accumulation.
‘When people talk about Nigeria’s debt-to-GDP ratio, they often forget that the international benchmark for countries like ours is about 70 per cent,’ she explained.
‘At 40 per cent, Nigeria remains below that threshold.’
Ms Oniha noted that the critical issue is the debt service-to-revenue ratio, which determines how much of the nation’s income goes into paying debts.
‘If a large portion of revenue goes to debt service, less will be left for development projects,’ she said.
Ms Oniha emphasised that raising revenue is the most effective way to manage debt sustainably.
‘The focus should be on growing revenue so that the debt service-to-revenue ratio can be lower,’ she said.
‘When revenues rise significantly, the rate of borrowing will slow down, and the government can service debts conveniently while still funding critical projects.’
She added that all debt servicing provisions are integrated into the Medium-Term Expenditure Framework (MTEF) and the national budget, ensuring predictability and transparency in Nigeria’s debt strategy.
Both Edun and Ms Oniha agreed that ongoing fiscal reforms – including stronger revenue mobilisation, transparent spending, and disciplined borrowing – are crucial to achieving a stable and inclusive economy by 2030.
Bagudu: we will implement development plans
Bagudu said Nigeria’s next National Development Plan (NDP 2026-2030), guided by the Nigeria Agenda 2050, targets a $1 trillion GDP by 2030.
He said achieving this goal would require an average annual GDP growth rate of 8.78 percent, a 17.18 percent manufacturing contribution to GDP, and a 24.78 percent manufactured export share by 2030.
He said: ‘The process of developing the NDP 2026-2030 will be consultative, participatory, and inclusive. We will involve the private sector, state and local governments, political parties, civil society organizations, labour unions, and other key stakeholders.’
The minister explained that the Renewed Hope Ward-Based Development Programme would be one of the key focus areas of the summit.
He described it as ‘an ambitious, people-centred initiative designed to uplift economically active citizens and ensure that ordinary Nigerians, particularly those at the grassroots, directly feel the positive impact of government reforms.’
Fed Govt mobilising 49% of $2b fibre optic investment
Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijjani, said that the Federal Government is mobilising 49 per cent of Nigeria’s $2 billion fibre optic network project to deepen broadband access nationwide.
Speaking at a session hosted by IHS Towers, Tijjani said the project will connect every state, local government, and ward with fibre infrastructure.
‘For Nigerians to have connectivity, we must invest in fibre optic networks, which will cost about $2 billion,’ he said. ‘Government is bringing 49 per cent, and the private sector will provide the rest.’
Tijjani said improving broadband access could raise national GDP by 2.5 per cent for every 10 per cent increase in connectivity.
He noted that 11 states have already eliminated Right of Way (RoW) charges, facilitating faster deployment.
Beyond broadband, Tijjani said the government is integrating Artificial Intelligence (AI) and innovation policies to position Nigeria as a digital hub.
IHS Nigeria CEO Mohamad Darwish added that bridging the digital divide will require ‘massive investments in broadband coverage, innovation, and talent.’
He stressed that public-private partnerships and digital literacy programs are essential to ‘unlock productivity, drive growth, and position Nigeria as a future-ready economy.’
NESG urges focus on job creation
NESG Chairman Niyi Yusuf advised that Nigeria’s next phase of reform must focus on job creation, productivity, and inclusive growth.
‘The challenge before us is to move decisively into the consolidation phase, embedding reforms in ways that drive jobs, growth, and inclusion, while simultaneously laying the foundations for long-term transformation that secures prosperity for every Nigerian,’ Yusuf said.
He stated that while past policies had concentrated on macroeconomic stabilisation, the time has come to translate those efforts into sustained job creation and real improvements in living standards.
NESG advised that Nigeria needed to create at least 4.5 million jobs annually for five years to curtail rising unemployment.
The group, in a report titled: ‘From Hustle to Decent Work: Unlocking Jobs and Productivity for Economic Transformation in Nigeria,’ stated that the nation’s working-age population could expand to 168 million within the decade.
It warned that without decisive action, unemployment and underemployment could double by the end of the decade, trapping millions of Nigerians in low-skilled, low-paying, and vulnerable work.
According to the NESG, the future of Nigeria’s workforce depends on how quickly the country can move from a ‘hustle economy’ dominated by informal activities to one that delivers decent and productive employment.
NESG Senior Economist Wilson Erumebor, who presented the report, said the job crisis in the country has gone beyond employment numbers to a fundamental development challenge.
‘This is not just a labour market issue; it is a huge development challenge. Without decisive reforms to create decent and productive jobs, an entire generation risks being trapped in vulnerable work that neither lifts families out of poverty nor moves the nation forward,’ he warned.
‘The weak private sector capacity and reliance on the government for wage employment in some states have left millions of Nigerians with the option of finding work in the informal economy,’ he said.
‘The informal sector has become the default employer, absorbing a significant share of the country’s workforce.’