Governor Hope Uzodimma of Imo State and the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, have called for stronger fiscal federalism, improved internally generated revenue and economic diversification to help Nigeria withstand global economic shocks.
The call came in Owerri during the 2026 National Council on Finance and Economic Development (NACOFED) Retreat, a five-day meeting focused on the theme, “Strengthening Fiscal Federalism for Equity, Sustainable Development and Economic Resilience in a Volatile Global Economy.”
Oyedele said the retreat provides an opportunity for policymakers to critically examine Nigeria’s existing fiscal structure, including how revenue is generated and shared among the three tiers of government. He argued that the country must move away from dependence on federal allocations and build an economy driven by production, investment and job creation.
Represented by his deputy, Lady Chinyere Ekomaru, Governor Uzodimma said states must be given greater capacity to generate and manage their own revenue. He warned that continued dependence on oil revenue was no longer sustainable and urged participants to develop practical solutions for improving fiscal autonomy and resource management.
The governor said Imo had taken steps to strengthen its finances by digitising revenue collection, blocking leakages and increasing internally generated revenue. He added that his administration was investing in agriculture, the digital economy, tourism, power, education, small and medium-sized enterprises and infrastructure to create jobs and expand opportunities for young people.
Oyedele disclosed that monthly Federation Account allocations have risen sharply following recent economic reforms, including the removal of fuel subsidy and the unification of the foreign exchange market. He said allocations that averaged between N300 billion and N600 billion before 2023 now exceed N2 trillion, with N2.8 trillion distributed by FAAC in June 2026.
However, the minister cautioned that higher government revenue would not automatically translate into development. He called for greater accountability, prudent borrowing and stronger public financial management, stressing that increased resources must produce better infrastructure, human capital development, productivity and public services.
Oyedele also urged governments to attract investment, expand their revenue base and create jobs rather than rely heavily on federal allocations. He challenged participants to have an evidence-led discussion on Nigeria’s fiscal future and ensure that fiscal federalism evolves alongside the country’s changing economic realities.
Earlier, Permanent Secretary, Special Duties, Federal Ministry of Finance, Mohammed Sanusi, described the retreat as timely amid Nigeria’s ongoing economic reforms. The meeting brought together senior officials including representatives of RMAFC, the Accountant-General of the Federation, state commissioners for finance, revenue agencies and development partners, alongside senior Imo State officials and other dignitaries.
