Bagudu: Northern States See Stronger Fiscal Position Under Tinubu’s Administration
By Patience Ikpeme
Senator Abubakar Bagudu, the Minister of Budget and Economic Planning, announced on Wednesday that the Northern states of Nigeria have experienced significant economic advancement under President Bola Tinubu’s leadership, evidenced by a substantial increase in revenue and a considerable reduction in debt.
He made these remarks during a presentation at the Sir Ahmadu Bello Memorial Foundation’s two-day interactive session on “Government-Citizen Engagement” in Kaduna, themed ‘Assessing Electoral Promises: Fostering Government-Citizen Engagement for National Unity.’
The engagement, which began on Tuesday, brought together over 60 Northern federal political appointees, including the Secretary to the Government of the Federation, Senator George Akume, who led the delegation, as well as ministers and heads of various ministries, departments, and agencies, Northern state governors, and regional thought leaders, notably the Arewa Consultative Forum.
The Foundation organized the session to evaluate President Tinubu’s election promises to its members. Key Northern ministers, including Mr. Mohammed Idris (Minister of Information and National Orientation), Mr. Mohammed Badaru (Minister of Defence), Senator Abubakar Kyari (Minister of Agriculture and Food Security), and the National Security Adviser, Malam Nuhu Ribadu, were in attendance.
Minister Bagudu explained that the President’s bold economic reforms have led to increased revenue for the states, while simultaneously reducing their debt burdens, thereby freeing up more resources for social and infrastructural development. He stated that this situation has greatly benefited the 19 Northern states, which have seen a considerable rise in their federally allocated revenue since President Tinubu assumed office on May 29, 2023.
Bagudu detailed how President Tinubu’s reforms contributed to significant revenue growth for subnational governments. He pointed out that between May 2023 and June 2025, the total net statutory revenue and VAT allocation to states and local governments (excluding EMT levy, FX gains, and augmentations) more than doubled, increasing from N458.81 billion to N991.81 billion. This represents an increase of N533 billion, or 116.17%, across the federation.
According to the Minister, this substantial increase in allocation was primarily a result of the Federal Government’s bold reforms, including the removal of the fuel subsidy. He acknowledged that these reforms caused some short-term difficulties but noted that the fiscal space created allowed for direct transfers of more oil revenues to the Federation Account, thus increasing statutory allocations to subnational governments.
Bagudu stated that, “by ending the fuel subsidy, President Tinubu made a hard but necessary call—liberating trillions of naira to expand federal allocations by over 340%. States now have the means to invest in their future.”
The Minister continued that while every state in the federation recorded significant increases in monthly allocations, the Northern states received a considerable raise.
He cited Gombe State as an example, which saw the sharpest rise, from N6.69 billion in May 2023 to N24.91 billion in 2025, a 272.35% increase. Kaduna State also experienced a substantial increase, with its allocation rising from N11.94 billion to N42.01 billion, a leap of N30.07 billion or 251.84%.
A regional analysis of the benefits to the North showed that the North Central’s share of revenue increased by 145%, the North East by 149%, and the North West by 143%. The Minister explained, “These show how removing subsidies and enhancing revenue-sharing mechanisms have directly benefited State Governments, enabling them to fund their development priorities.”
Bagudu further informed the audience that the fiscal position of subnational governments had improved due to a significant reduction in domestic debt, facilitated by the availability of additional funds from the Federation Account.
He clarified that the debt portfolio of all 36 states and Abuja was reduced by 33.4%, decreasing from N5.8 trillion to N3.8 trillion under the President’s financial management. Focusing on the North’s contribution to this, the Minister noted that the region’s 19 states experienced a 42.06% reduction, moving from N1.98 trillion to N1.14 trillion.
Bagudu told his audience, “These results demonstrate the tangible benefits of macro-fiscal reforms. The Renewed Hope Agenda is delivering real value to citizens through improved subnational fiscal capacity. The Tinubu administration at the center remains committed to fiscal transparency, equitable distribution, and continued collaboration with states and LGAs.” He added that the President’s administration has shown a comprehensive and strategic approach to addressing the economic, social, and governance challenges in Northern Nigeria.
“By implementing bold reforms, investing in critical infrastructure, empowering local governments, and prioritizing security and social welfare, the administration is working to create an environment conducive to sustainable development and improved quality of life for the people of the region,” he said.
Bagudu supported his claims by mentioning key infrastructural projects of the Federal Government in the North, including the Sokoto-Badagry Superhighway, the dualization of the Kano-Maiduguri Road, the Sokoto-Gusau-Funtua-Zaria Highway, the Abuja-Keffi-Makurdi Road, the Ilorin-Jebba-Minna Road, the Abuja-Lokoja Road, and the Kano-Katsina Road dualization. Other road projects he listed included the Abuja-Kaduna-Kano Expressway, the Malando-Garin Baka-Ngaski-Warra Road, the Bid-Zungeru-Kagara Road, the Gombe-Biu Road, the Yola-Numan-Jalingo Road, the Kaduna-Kano Railway, the Light Rail Projects in Kaduna, Kano, and the FCT, and the AKK Gas Pipeline.
The Minister also mentioned the enhancement of healthcare facilities under President Tinubu, stating that over 1,003 primary healthcare centers were revitalized in two years, and that 10 of the nation’s upgraded medical warehouses are located in the North.
He noted a significant upgrade in federal teaching hospitals and medical centers across Katsina, Bauchi, Yobe, Borno, Zaria, Adamawa, Kebbi, Taraba, and Kano. He pointed out that under the MAMII programme, the region recorded 13.1 million antenatal visits, 4.2 million safe deliveries, 4,000 free Caesarean sections, and 6 million women receiving nutritional support. “This is not charity. It is health justice delivered with intent,” he stated firmly.
Bagudu concluded by stating that President Tinubu’s policies are equitable and fair to all regions, explaining that the President ensures his Renewed Hope legacy projects are distributed equally across the country. According to him, “President Bola Ahmed Tinubu’s administration has demonstrated a comprehensive and strategic approach to addressing the economic, social, and governance challenges in Nigeria.”
The citizen engagement, which took place from Tuesday to Wednesday, assessed the implementation of the election promises President Tinubu made to the Foundation during the 2023 general election. While some Northern leaders held the belief that the region had not been treated fairly, 19 governors and federal political appointees presented a different view, supported by data and facts regarding the President’s programs in the area.
