The Minister of Finance and Coordinating Minister of the Economy, Prof. Taiwo Oyedele, has urged state governments to develop mechanisms for improved revenue generation and economic diversification, noting that federal allocations alone cannot guarantee prosperity for states.
Oyedele spoke in Owerri, the Imo State capital, on Wednesday at the ongoing 2026 National Council on Finance and Economic Development (NACOFED) Retreat.
He said the conference was aimed at addressing prevailing economic challenges amid the volatility in the global economy, particularly the impact of the ongoing conflict in the Middle East.
The minister noted that Nigeria, whose economy remains heavily dependent on oil, could not afford to overlook developments in the Middle East and their potential implications for the country’s economy.
He said, “Nigeria must move from an allocation-dependent economy to one driven by production, investment and job creation.
“Recent economic reforms, including the removal of fuel subsidy and the unification of the foreign exchange market, have significantly increased revenues available for distribution through the Federation Account.”
According to him, the conference was also an opportunity to assess whether the benefits of federal allocations were being felt beyond state capitals and in communities across the regions.
Oyedele stressed the need for states to look beyond federal allocations and develop their productive capacities to achieve sustainable economic development.
In his remarks, Imo State Governor, Senator Hope Uzodimma, said his administration was investing in agriculture, the digital economy, power and infrastructure as part of efforts to diversify the state’s economy.
Uzodimma, who was represented by his deputy, Dr Chinyere Ekomaru, said states must be deliberate and intentional about diversifying their economies.
The governor said his administration had also improved security in the state as part of measures to create an enabling environment for economic activities and attract investment.
He added that Imo was moving towards a more vibrant economy, stressing that his administration remained committed to driving investments and expanding economic opportunities for residents.
