Oyedele advocates stronger fiscal federalism, economic diversification in Nigeria

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has called for stronger fiscal federalism, improved revenue generation and economic diversification to strengthen Nigeria’s resilience to economic shocks.

Oyedele said this at the commencement of the 2026 National Council on Finance and Economic Development (NACOFED) holding at Emmanuel Iwuanyanwu International Convention Centre with the theme: “Strengthening Fiscal Federalism for Equity, Sustainable Development and Economic Resilience in a Volatile Global Economy.”

The Minister emphasised that the purpose of the five-day summit in Owerri is to interrogate Nigeria’s current fiscal architecture, insisting on the Retreat interrogating the current allocation and derivation principles.

He called for greater fiscal responsibility, accountability and cooperation among Nigeria’s three tiers of government to achieve sustainable economic growth.

He said, “Nigeria must move from an allocation-dependent economy to one driven by production, investment and job creation.”

According to the Minister, 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 monthly Federation Account allocations, which averaged between N300 billion and N600 billion before 2023, now exceed N2 trillion.

For instance, Oyedele disclosed that the Federation Account Allocation Committee (FAAC) distributed N2.8 trillion to the Federal, State and Local Governments in June 2026.

However, he cautioned that higher allocations alone could not guarantee development, insisting that increased revenues must translate into improved infrastructure, human capital development, productivity and public services.

The Minister urged state governments to strengthen their internally generated revenue, attract investments and create jobs rather than rely heavily on federal allocations.

He also advocated prudent borrowing and greater transparency in public finance, warning governments against accumulating liabilities without credible repayment plans.

To the participants, he advised them to use the Retreat to promote “an evidence-led conversation, not a positional one,” while ensuring that “fiscal federalism evolves in response to Nigeria’s changing economic realities.”

Declaring the NACOFED summit open, Governor Hope Uzodimma of Imo State, represented at the event by his Deputy, Lady Chinyere Ekomaru, said that states must be empowered to generate more revenue and efficiently manage available resources, pointing out that continued dependence on oil revenue was no longer sustainable.

While commending the Federal Government and the organisers for choosing Imo as host for the Retreat, Uzodimma described the theme as timely given growing global economic pressures.

He disclosed his administration’s resolve to make “Shared Prosperity” a reality through its 3R agenda, adding that Imo State had digitised her revenue collection, blocked leakages and increased its internally generated revenue (IGR).

Uzodimma added that the state had also invested in agriculture, the digital economy, tourism, power, education, small and medium-sized enterprises and infrastructure as part of efforts to create jobs and expand economic opportunities for its growing youth demography.

He urged participants at the Retreat to develop practical measures that would deepen fiscal autonomy, improve revenue generation and promote equity among the federating units.

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The Governor assured development partners that Imo State is today the preferred destination for investment in the country and remains open for business, citing improved security, political stability and the state government’s commitment to partnerships.

He reiterated that because Imo had risen, her real meaning today, literally, stands as Investment Meets Opportunities (IMO), while he urged Oyedele and the NACOFED participants to use the opportunity of their visit to explore the hospitality of the people of Imo State.

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Earlier, in his welcome address, the Permanent Secretary, Special Duties, Federal Ministry of Finance, Mr Mohammed Sanusi, described the 2026 NACOFED Retreat as timely, saying it came at a critical period when Nigeria was implementing major economic reforms to strengthen macroeconomic stability and promote sustainable development.

Sanusi said the Retreat provides an important platform for policymakers and stakeholders to evaluate issues affecting the nation’s economy.

He expressed appreciation to the Imo State Government for hosting the event and commended Oyedele for his leadership and commitment to economic reforms.

The Permanent Secretary urged participants, including commissioners for finance, accountants-general, revenue-generating agencies, development partners and other stakeholders, to engage in constructive discussions capable of producing practical recommendations for strengthening revenue generation and improving economic management.

Among those present at the occasion was the Accountant-General of the Federation, Shamsudeen Babatunde Ogunjimi.