The Central Bank of Nigeria has reported a remarkable 110 percent increase in federation transfers to state governments, rising to N11.38 trillion in 2024. This significant growth reflects the impact of President Bola Ahmed Tinubu’s economic reforms aimed at strengthening subnational finances, promoting fiscal transparency, and driving inclusive national development. The rise in allocations marks one of the most substantial improvements in intergovernmental fiscal distribution in recent years.

According to the CBN, the increase was largely driven by higher oil and non-oil revenue inflows, alongside fiscal and monetary policy adjustments under the Renewed Hope Agenda. Reforms such as the removal of fuel subsidies, the unification of exchange rates, and improved tax administration have boosted national revenue and enhanced the fiscal performance of all tiers of government. These policy measures have restored investor confidence and ensured more consistent revenue flows to the federation account.

The surge in transfers has provided state governments with greater financial capacity to invest in infrastructure, education, healthcare, and other critical sectors. Analysts have commended President Tinubu’s administration for its pragmatic approach to fiscal management, noting that the sustained growth in federation allocations is strengthening state-level economies and advancing balanced national development across Nigeria.