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Economic Issues > Blog > Uncategorized > States Applaud Tinubu’s Economic Reforms
Uncategorized

States Applaud Tinubu’s Economic Reforms

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By Reporter May 21, 2025
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States Applaud Tinubu’s Economic Reforms

…Urge Strategic Use of Increased Revenues

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By Patience Ikpeme 

 

President Bola Tinubu’s economic reform agenda has drawn commendation from the Community of Practice (CoP), a coalition of Budget and Economic Planning Commissioners from Nigeria’s 36 states, for generating increased revenues and reducing debt burdens across the federation.

 

In a communiqué released at the end of their 18th meeting held in Umuahia, Abia State, the commissioners acknowledged a marked improvement in fiscal inflows to states and local governments, attributing it to recent economic policy decisions at the federal level.

 

“We note the significant increase in revenues accruing to states and local governments and debt reduction resulting from the positive impact of the federal government’s economic reforms,” the commissioners said. “We, therefore, commend the federal government for its bold economic reforms that have positively impacted revenue accruing to the sub-nationals.”

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The three-day session, which ran from May 6 to 8, 2025, brought together 104 participants, including officials from federal and state governments, development partners, and members of the media. It was jointly convened by the Federal Ministry of Budget and Economic Planning in collaboration with the Abia State Government.

 

At the heart of the discussions were issues affecting local governance, with a focus on strengthening fiscal and administrative structures to support sustainable development. Topics covered included local government autonomy, inclusive planning, good governance practices, and coordination among different levels of government.

 

The commissioners pointed to the expanded fiscal space created by rising revenue flows, urging subnational governments to channel the additional funds into sectors capable of stimulating economic growth and improving the welfare of citizens, particularly in local and ward-level communities.

 

They encouraged investments in critical infrastructure and productivity-enhancing projects that would deepen economic activity at the grassroots and recommended improved planning and budgeting frameworks to make the most of the revenue surge.

 

On the matter of local government autonomy, the commissioners reflected on the 2023 Supreme Court ruling which granted financial and political independence to Nigeria’s 774 local government councils. While acknowledging this milestone, they maintained that autonomy must be accompanied by a robust governance structure to ensure that local councils function effectively.

 

“Autonomy is not absolute; hence, there is a need for a framework that would work for all the local government areas to make them more effective,” the communiqué stated.

 

The CoP advocated for a collaborative governance model where local governments in each state can pool resources for joint developmental initiatives. According to the commissioners, this strategy would enhance the delivery of services in both urban and rural areas and should be integrated into any framework guiding local government operations.

 

In line with this vision, the group recommended the establishment of a State Joint Economic Planning Board (SJEPB) in accordance with the Supreme Court judgment. Such a board, they argued, would help coordinate grassroots development efforts and improve planning outcomes.

 

States that already have SJEPB legislation in place were encouraged to share their legal frameworks to develop a model law that other states can adopt or adapt. The commissioners believe this step will help harmonize economic planning structures nationwide and ensure consistency in the implementation of development policies.

 

The CoP also threw its support behind the federal government’s proposal to introduce a ward governance system, describing it as a viable tool for local-level planning. To make it effective, they called for strong collaboration between states and the National Bureau of Statistics (NBS) to promote data-driven planning and decision-making.

 

In a bid to improve capacity among planning and budget officers, the commissioners appealed to the Federal Ministry of Budget and Economic Planning to sustain its ongoing training programs and professional development initiatives. They said such efforts would equip stakeholders with the necessary skills to execute effective and forward-looking plans at the subnational level.

 

Throughout the conference, the emphasis remained on shared responsibility and strategic partnerships across all tiers of government. The commissioners reaffirmed their commitment to leveraging improved revenue positions for inclusive development, stronger institutions, and improved service delivery to citizens.

 

The meeting concluded with a consensus that policy continuity, transparent governance, and institutional collaboration remain key to realizing the long-term goals of Nigeria’s national development agenda.

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Reporter May 21, 2025 May 21, 2025
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