The National Vice Chairman (South East) of the All Progressives Congress (APC), Dr Ijeomah Arodiogbu, has attributed improved fiscal conditions across Nigeria’s states to the economic reforms introduced by President Bola Ahmed Tinubu.
Arodiogbu stated this in a statement issued in Awka while assessing the impact of the Federal Government’s economic reforms on the finances of the 36 states and the Federal Capital Territory.
He said Nigeria’s fiscal situation before President Bola Ahmed Tinubu assumed office was characterised by severe revenue constraints, high debt-service obligations and inadequate resources for many tiers of government.
“Before President Tinubu came into office, we had a situation where many states were struggling with salary arrears, pension obligations and other recurrent expenditures and often resorted to borrowing or issuing bonds simply to meet payroll. The Federal Government was equally under tremendous fiscal pressure.
“The old system was not sustainable. Government was spending enormous resources to subsidise petrol while states and local governments were receiving insufficient resources to meet their obligations. The consequence was salary arrears, accumulated debts and declining capacity to fund development,” Arodiogbu said.
The APC chieftain stated that President Bola Ahmed Tinubu’s decision to remove the petrol subsidy and implement reforms in the foreign exchange and fiscal sectors was aimed at addressing longstanding structural challenges in the economy.
“Today, that ugly narrative has changed. No state is owing salary. This is a direct result of President Tinubu’s reforms, which have injected more resources into the system and given governors the fiscal space to prioritise the welfare of public servants.
“The result is that more resources are now flowing to the Federal Government, states and local governments. That is why we are seeing a different fiscal reality across the country,” he stated.
Arodiogbu cited developments in the South-East, particularly the upward review of minimum wages in Imo and Ebonyi states beyond the national benchmark of N70,000.
According to him, Imo State, under Governor Hope Uzodimma, increased its minimum wage to N104,000, while Ebonyi State raised its minimum wage to N90,000.
He further explained that improved revenue allocations had enabled states to review salaries upward, clear outstanding gratuities and pension arrears, and invest in infrastructure and social programmes.
“We have moved from a situation where governments were constantly battling to survive to a situation where states have greater resources and greater responsibility.
“President Tinubu has changed the fiscal architecture. The challenge now is for every level of government to convert increased revenue into tangible improvements in the lives of Nigerians,” the APC chieftain stated.
Arodiogbu called on Nigerians, particularly people of the South-East, to continue supporting the administration of President Bola Ahmed Tinubu.
He also expressed confidence that Ndigbo in the South-East and across Nigeria would support President Bola Ahmed Tinubu’s re-election bid in 2027.
