The Federal Government (FG) has announced that State Governments (SGs) and Local Governments (LGs) have recorded a combined fiscal surplus of about N7.1 trillion under the current administration, boosted by higher statutory allocations and refunds from earlier deductions.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this during a press briefing in Abuja. He said the surplus reflects the government’s commitment to passing the benefits of fuel subsidy removal directly to Nigerians through increased resources for the sub-national levels.
“We are increasing resources available to the states for education, health, and infrastructure,” Edun stated. “We are also making repayments of past deductions to the federation account, funds which are legitimately owed to the sub-national governments. These payments are being made regularly.”
According to the minister, the combined fiscal balance of states has risen from 1.8% of GDP (N2.8 trillion) in the first half of 2023 to 3.1% of GDP (N7.1 trillion) in the first half of 2025.
He also revealed that the Federal Government achieved 37.4% of its revenue target in the first half of 2025, and that a review of the cost of revenue collection is underway to improve fiscal efficiency.
