Governor Abdullahi Sule of Nasarawa State has attributed the renewed fiscal stability of several Nigerian states to the far-reaching Tinubu reforms introduced at the start of the current administration.
According to him, decisive economic measures taken by President Bola Ahmed Tinubu helped steer many subnational governments away from the brink of bankruptcy.
Sule made the remarks at the Government House in Lafia while receiving the North Central management team of the Federal Radio Corporation of Nigeria (FRCN), led by its Zonal Director, Babayo Askira.
During the meeting, he reflected on the economic turbulence that greeted the early days of the administration and the gradual recovery that has followed.
Central to the governor’s argument is the increase in allocations from the Federation Account.
He explained that following the fuel subsidy removal and exchange rate unification, revenue accruing to the Federation Account rose significantly, enabling federal, state, and local governments to meet pressing financial obligations.
He stressed that without these changes, many states would have struggled to survive mounting debt pressures.
The governor described the Tinubu reforms as bold and politically risky decisions that few leaders would have embraced at the onset of their tenure.
In his view, scrapping the fuel subsidy and harmonising the multiple foreign exchange windows required uncommon courage.
He said such measures are often postponed by first-term leaders wary of public backlash, yet they were implemented immediately.
Sule noted that while the fuel subsidy removal initially triggered economic strain, particularly through higher transportation and commodity prices, the long-term fiscal gains are now evident.
He argued that the policy freed up substantial resources that previously went into subsidy payments and redirected them into the Federation Account for shared distribution.
On exchange rate unification, the governor explained that the previous multiple-rate regime created distortions and opportunities for arbitrage.
By aligning the rates, he said, the government restored transparency and improved investor confidence.
The exchange rate unification also strengthened federal revenue-generating agencies by closing loopholes that had drained public finances.
Reflecting on the situation of Nasarawa State, Sule said prudent financial management shielded the state from severe shocks.
Drawing from his private sector background, he revealed that he deliberately avoided contracting foreign exchange-linked loans during his first term.
According to him, many states that borrowed when the naira traded around N350 to the dollar are now facing repayment difficulties at rates exceeding N1,000 to the dollar.
He warned that currency volatility can rapidly inflate debt burdens, especially when loans are denominated in foreign currencies.
In contrast, Nasarawa State maintained a cautious borrowing profile, a decision he said has allowed it to benefit fully from improved Federation Account inflows without being weighed down by escalating debt service costs.
The governor acknowledged that inflation surged above 30 percent during the peak of economic adjustments but maintained that recent figures show a marked decline.
He credited enhanced non-oil revenue generation and stricter fiscal discipline for the improvement.
In his assessment, the Tinubu reforms laid the groundwork for a more realistic and sustainable economic structure.
Sule also referenced a recent meeting between the President and state governors in Abuja, where prudence and accountability were emphasised.
He said the message was clear: increased revenue must translate into tangible development, not reckless spending.
According to him, responsible management of public funds will determine whether the gains of the reforms endure.
Beyond fiscal matters, the visit by the FRCN delegation provided an opportunity to discuss media collaboration and state development.
Sule commended the national broadcaster for promoting peace and unity in Nasarawa State.
He acknowledged the contributions of traditional rulers, security agencies, and media organisations in sustaining relative calm across communities.
In his response, Askira said the visit was intended to strengthen institutional relationships and appreciate the governor’s support.
Having previously served as General Manager of Precious FM Lafia, he expressed surprise at the scale of transformation across the state.
He cited infrastructural expansion from Karu to Keffi and Akwanga, noting that some areas have undergone dramatic change.
Askira specifically mentioned the Mararaba flyover as a landmark project that has improved traffic flow and urban mobility.
He described the governor’s leadership style as pragmatic and development-focused, adding that sustained peace has created an enabling environment for growth.
As debates continue nationwide over the social costs and benefits of economic restructuring, Sule insisted that history will judge the Tinubu reforms as necessary interventions.
He argued that temporary hardship must be weighed against the risk of systemic collapse that loomed before the policy shifts.
For many states, he concluded, the enhanced allocations from the Federation Account have provided critical relief.
In his estimation, the combination of fuel subsidy removal, exchange rate unification, and strengthened revenue systems has redefined fiscal federalism in Nigeria.
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