Governors Demand Fiscal Autonomy Review Amid Rising Costs

A renewed push for fiscal restructuring has emerged as several state governors call for a review of Nigeria’s revenue allocation formula, citing rising governance costs and increasing financial pressure at the subnational level.

The governors, speaking through the Nigeria Governors’ Forum (NGF), argue that current allocations are no longer sufficient to meet growing demands in infrastructure, salaries, healthcare, and education.

They are proposing an upward review of state shares from the federation account, alongside greater control over internally generated revenue systems. Some governors also want expanded authority to access infrastructure loans without federal bottlenecks.

The Federal Government, however, has urged caution, warning that any fiscal restructuring must maintain national stability and prevent widening inequalities between richer and poorer states.

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Economic experts say the debate is not new but has gained urgency due to inflationary pressures, subsidy reforms, and fluctuating oil revenues.

Civil society organizations are calling for transparency in how states manage existing allocations before any increase is approved, stressing the need for accountability and fiscal discipline.

Meanwhile, state governments insist that without reforms, development projects may slow down, especially in rural areas where dependence on federal allocations is high.

The matter is expected to be discussed at upcoming National Economic Council meetings, where federal and state leaders will attempt to reach a consensus