Economic Progress in Northern Nigeria Under President Tinubu

Strategic Insights -

Senator Abubakar Bagudu, the Minister of Budget and Economic Planning, presented a comprehensive overview of the economic progress in northern Nigeria under President Bola Tinubu. The presentation highlighted significant increases in revenue allocation to states and local governments, a substantial reduction in domestic debt, and the implementation of bold reforms aimed at promoting fiscal transparency and equitable distribution of resources.

The minister noted that the total net statutory revenue and Value Added Tax (VAT) allocation to states and local governments increased to N991.81 billion in June 2025, from N458.81 billion in May 2023, reflecting an increase of N533 billion or 116.17 per cent across the federation. This increase was mainly due to the federal government's bold reforms, including the removal of the fuel subsidy, which created a fiscal space for direct transfers of more oil revenues to the Federation Account.

Bagudu stated that while every state in the federation recorded significant increases in monthly allocations, the northern states received a substantial raise, with Gombe State experiencing the sharpest rise of 272.35 per cent, followed by Kaduna State with a 251.84 per cent increase.

Key Takeaways:

  • The total net statutory revenue and VAT allocation to states and local governments increased to N991.81 billion in June 2025, reflecting an increase of N533 billion or 116.17 per cent across the federation.
  • The northern states recorded a significant increase in revenue allocation, with Gombe State experiencing the sharpest rise of 272.35 per cent.
  • The debt portfolio of the 36 states and Abuja was reduced by 33.4 per cent, from N5.8 trillion to N3.8 trillion, under the president's deft financial engineering.
  • The northern states experienced a 42.06 per cent reduction in their debt portfolio, from N1.98 trillion to N1.14 trillion, during the same period.
  • The Renewed Hope Agenda is delivering real value to citizens through improved subnational fiscal capacity.
  • The Tinubu administration has demonstrated a comprehensive and strategic approach to addressing economic, social, and governance challenges in northern Nigeria.

Statistics:

  • N991.81 billion: Total net statutory revenue and VAT allocation to states and local governments in June 2025.
  • N458.81 billion: Total net statutory revenue and VAT allocation to states and local governments in May 2023.
  • N533 billion: Increase in total net statutory revenue and VAT allocation to states and local governments from May 2023 to June 2025.
  • 116.17 per cent: Increase in total net statutory revenue and VAT allocation to states and local governments from May 2023 to June 2025.
  • 272.35 per cent: Increase in Gombe State's monthly allocation from May 2023 to June 2025.
  • 251.84 per cent: Increase in Kaduna State's monthly allocation from May 2023 to June 2025.
  • 33.4 per cent: Reduction in the debt portfolio of the 36 states and Abuja from N5.8 trillion to N3.8 trillion.
  • 42.06 per cent: Reduction in the northern states' debt portfolio, from N1.98 trillion to N1.14 trillion.

Sources:

  • Senator Abubakar Bagudu, Minister of Budget and Economic Planning
  • Sir Ahmadu Bello Memorial Foundation (SABMF)
  • Daily Trust Newspaper
  • Vanguard Newspaper