Former Minister of State for Science and Technology and Abia State Renewed Hope Ambassador, Henry Ikoh, has praised President Bola Ahmed Tinubu for economic reforms that have ended the era of state governments borrowing to pay workers’ salaries.
Ikoh explained that states now receive significantly higher monthly allocations, enabling them to fund salaries and developmental projects without resorting to loans. He highlighted that federation allocations to states have increased nearly fourfold following the removal of fuel subsidies, a move he described as commendable.
“Before now, many states were practically bankrupt and had to borrow just to pay salaries. Today, that is no longer the case. States now have enough funds to run their affairs effectively,” Ikoh said.
He noted that Tinubu’s reforms are producing tangible dividends nationwide. “Mr. President’s reforms are working. States now have more funds. Governors no longer borrow to pay salaries. Workers are paid as and when due, contractors are being settled, and salaries have improved because money is available,” he added.
Ikoh also observed that Nigeria is gradually transitioning from a consumption-driven economy to a productive one. “There is fuel everywhere, no more queues. The dollar has stabilised. We no longer have multiple exchange rates. Unfortunately, many people refuse to give Mr. President credit for these gains,” he lamented.
Addressing critics who argue that federal allocations are constitutional entitlements rather than presidential benevolence, Ikoh maintained that Tinubu deserves credit for his political will to implement reforms that expanded the distributable pool. “The President could have chosen a different path, as we saw in the past. But he took bold decisions that strengthened states financially,” he stated.
The former minister concluded that the reforms have improved fiscal management across states, enhancing workers’ welfare and ensuring smoother funding of projects nationwide.
