Sanwo-Olu Commends Tinubu’s Fiscal Reforms, Says States and LGs Enjoy Increased Allocations

Lagos State Governor, Babajide Sanwo-Olu, has applauded President Bola Ahmed Tinubu’s economic policies, noting that they have significantly improved the financial standing of state and local governments across the country.

Speaking at a public lecture held at the Arewa House in Kaduna to mark Nigeria’s 65th Independence Anniversary, Sanwo-Olu said subnational governments now receive more funds from federal allocations, enabling them to undertake more developmental projects.

According to the governor, the present administration’s fiscal and tax reforms have strengthened the country’s federal system by granting states and local councils greater financial autonomy. He explained that between 2023 and 2024, state allocations rose by about 62 percent, while local governments recorded a 47 percent increase.

Sanwo-Olu further disclosed that recent tax reforms have adjusted the sharing formula for Value Added Tax, giving states 55 percent and local councils 35 percent, while the Federal Government now retains 10 percent. He described the move as a deliberate step to bring governance closer to the people and enhance accountability at the grassroots.

He also praised the Federal Government’s efforts to entrench local government autonomy, referencing the Supreme Court ruling that strengthened council independence. Sanwo-Olu added that the next phase of the administration’s reforms will focus on restructuring Nigeria’s security system through the creation of state police an initiative he described as “long overdue and crucial to national safety.”

Highlighting the unity-focused nature of the Renewed Hope Agenda, Sanwo-Olu said the framework was designed to promote inclusive growth, bridge regional divides, and strengthen Nigeria’s socio-economic fabric.

He reaffirmed Lagos State’s commitment to supporting federal initiatives aimed at sustainable national development, stressing that collaboration across all levels of government is key to building a prosperous and secure Nigeria.