Reforms help boost state revenues, reduce borrowing – Gov Abdulrazaq

Kwara State Governor and Chairman of the Nigeria Governors’ Forum (NGF), Abdulrahman Abdulrazaq, says the removal of fuel subsidy has significantly improved the financial position of states, boosting revenues and reducing dependence on borrowing.

He stated this on Friday while speaking in his capacity as NGF chairman during a meeting with President Bola Tinubu and other state governors in Lagos.

Abdulrazaq said the fiscal reforms introduced by the federal government have strengthened the capacity of subnational governments to meet key obligations, including payment of salaries and pensions, as well as funding development projects.

According to him, many states that previously relied on loans and bond issuances to stay afloat are now in a better position financially. He said the improved revenue inflows have allowed some states to reduce debt levels and focus more on infrastructure and social investment.

“The nation was shocked by the audacity of Mr President to implement that serious policy, but today, it has benefited immensely from that policy,” he said.

Abdulrazaq also noted that states are now experiencing greater fiscal stability, adding that the reforms have improved coordination between the federal and state governments in managing public finances.