Allocation to states has surged by over 111 per cent, the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, announced yesterday.

Speaking at the 31st Nigerian Economic Summit (NES31) in Abuja during a session titled “The Reform Imperative: Building a Prosperous and Inclusive Nigeria by 2030”, Edun said: “States are now awash with cash,” noting that the additional funds empower sub-national governments to drive growth and enhance service delivery.

Highlighting key economic reforms, Edun identified exchange rate unification and the removal of fuel subsidies as pivotal measures, freeing up about five per cent of Nigeria’s GDP into the Federation Account.

On budget execution, he revealed that the government had reached an agreement with the National Assembly to ensure timely implementation and restore adherence to the fiscal calendar.

“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,” he said.

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Edun stressed that consistent and disciplined budget implementation is essential for transparency, effective project delivery, and credible public expenditure tracking. He noted that both the 2024 and 2025 budgets are currently running simultaneously, with the potential for Budget 2025 to extend into 2026 due to its delayed start.

Addressing debt management, the minister said the government is adopting a new borrowing mix to reduce reliance on Eurobonds and other external loans.

“The government will make greater use of Sukuk, green bonds, and diaspora bonds instead of Eurobonds,” he explained, adding that this approach will boost domestic investment while aligning debt issuance with Nigeria’s sustainable development goals.

On fiscal transparency, Edun revealed 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 further strengthen accountability, a new federal billing system has been launched to track payments for goods and services, ensuring every transaction is traceable and accurately recorded.

On inflation, the minister said that government interventions are guided by deliberate fiscal policy adjustments and smarter spending priorities to mitigate economic pressures.