Bagudu: North’s fiscal position stronger under Tinubu

By Abubakar Yunusa

Assessed by the quantum leap in revenue and massive debt reduction of the states, the North has made more significant economic progress under President Bola Tinubu, according to the Minister of Budget and Economic Planning, Senator Abubakar Bagudu.

Bagudu spoke on Wednesday in Kaduna during a presentation to the Sir Amadu Bello Memorial Foundation, which organised a two-day interactive session on Government-Citizen Engagement with the theme, ‘Assessing Electoral Promises: Fostering Government-Citizen Engagement for National Unity.’

The engagement, which commenced on Tuesday, was attended by over 60 Northern federal political appointees, including the Secretary to the Government of the Federation, Senator George Akume, who led the delegation, ministers and heads of some ministries, departments and agencies; Northern state governors, and thought leaders in the region, particularly the Arewa Consultative Forum.

The Foundation’s engagement was to evaluate Tinubu’s election promises to its members, attracting key Northern ministers, including Bagudu, the Minister of Information and National Orientation, Mr Mohammed Idris; the Minister of Defence, Mr Mohammed Badaru; and the Minister of Agriculture and Food Security, Senator Abubakar Kyari, as well as the National Security Adviser, Malam Nuhu Ribadu.

He stated that the president’s bold economic reforms had increased revenue for the states, even as their debts had fallen, freeing up more resources for social and infrastructural development.

Bagudu stated that this situation had greatly benefited the 19 Northern states, whose federally allocated revenue had increased significantly since Tinubu took office on 29 May 2023.

Bagudu explained that Tinubu’s reforms led to significant revenue growth for subnational governments, pointing out that between May 2023 and June 2025, total net statutory revenue and VAT allocation to States and Local Governments (excluding EMT levy, FX gains, and augmentations) more than doubled, rising from N458.81 billion to N991.81 billion.

He stated that this reflects an increase of N533 billion or 116.17%across the federation.

According to the minister responsible for budgeting and economic planning, this significant increase in allocation was mainly due to the Federal Government’s bold reforms, including the removal of the fuel subsidy.

He stated that, although the reforms caused some short-term pains, the fiscal space created allowed for direct transfers of more oil revenues to the Federation Account, thereby increasing statutory allocations to subnational governments.

He said, “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.”

Bagudu stated that while every state in the federation recorded significant increases in monthly allocations, the Northern states received a substantial raise.

He cited Gombe State, which he stated had the sharpest rise, from N6.69 billion in May 2023 to N24.91 billion in 2025, amounting to a 272.35% increase. He also referenced Kaduna State, whose allocation increased from N11.94 billion to N42.01 billion, a rise of N30.07 billion, a 251.84% leap.

According to him, a regional breakdown 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%.

“These show how removing subsidies and enhancing revenue-sharing mechanisms have directly benefited State Governments, enabling them to fund their development priorities,” the minister stated.