Tinubu’s Fiscal Reforms Have Freed States from Bank Loans – Gov. Sule
Governor Abdullahi Sule of Nasarawa State has credited President Bola Ahmed Tinubu’s fiscal policies—particularly the removal of fuel subsidy and direct allocation of resources to subnational governments—with liberating Nigerian states from dependency on bank loans to fund development projects.
The Governor made this assertion on Friday while hosting the House of Representatives Committee on Health Services, led by Chairman Hon. Amos Magaji Gwamna. The committee was in Nasarawa for an oversight visit focused on the Basic Healthcare Provision Fund (BHCPF).
Governor Sule revealed that his administration recently declined a major loan offer from a commercial bank, citing the state’s improved financial standing. “They asked, ‘Why is it that no state wants to borrow?’ I said, because every state appreciates what President Tinubu has done,” he said.
He attributed this new financial stability to Tinubu’s policy of transferring funds directly to states and local governments, following the removal of the fuel subsidy.
“That is the reason today why you see states managing without borrowing anything from anybody,” Sule explained. “Every project in Nasarawa has been executed without borrowing a single naira.”
The Governor contrasted this approach with previous subsidy removal attempts, asserting that Tinubu’s reform has led to substantial fiscal gains for subnational governments. “When Asiwaju [Tinubu] removed the subsidy, there was real money,” he said. “Unlike before, the states now manage the resources prudently.”
Governor Sule also used the occasion to recommend stricter accountability mechanisms for the Basic Healthcare Provision Fund. He proposed a model similar to that used by the Universal Basic Education Commission (UBEC), where states must pay a counterpart fund before receiving federal allocations.
“If you make that kind of recommendation, every state will take it more seriously,” he told the lawmakers.
Hon. Amos Magaji Gwamna, Chairman of the House Committee on Health Services, praised Governor Sule’s administration for its efforts in transforming the state’s healthcare sector and public service system.
He explained that the committee’s visit aimed to evaluate how the BHCPF is being implemented across states. This is the first such oversight since the fund was launched in 2020.
“We visited several primary healthcare centres in Nasarawa and observed both areas of excellence and those requiring improvement,” Gwamna said. “This type of oversight is vital for learning and for ensuring accountability.”
He commended the state government for fostering an organised civil service and creating a conducive administrative environment.
“Nasarawa is working. You have realigned this state to become one of the most promising in the North and across Nigeria,” he noted.
The visit marks a shift from what Gwamna described as ineffective oversight in the past, commending Governor Sule for being receptive to constructive feedback and committed to reforms.
