Economy
FG to disburse $170M for clean-up exercise, $1bn over a 5-year period
The Buhari administration is not only committed to ensuring that the clean-up of Ogoniland is carried out, but also ensuring that it is done transparently, according to Vice President Yemi Osinbajo SAN. Prof. Osinbajo said this today following the ceremonial signing of the escrow agreement at the Presidential Villa, Abuja. It would be recalled that in 2016, the Buhari administration started the implementation of the 2011 United Nations Environment Programme (UNEP) report on Ogoniland devastated by decades of oil spills. The Vice President, representing President Muhammadu Buhari, flagged off the Ogoni clean-up exercise on June 2, 2016.
Also, the Hydrocarbon Pollution Restoration Project (HYPREP) under the Federal Ministry of Environment was established, which has since set up structures in place for the final take off of clean-up and restoration of the region. At the meeting today, the Vice President said, “I am very pleased that we have got to this point in the process of the Ogoni clean-up exercise. On June 2, 2016, I had the privilege of flagging off the clean-up exercise in Ogoniland. At that time, I, of course, was representing the President. We made the promise that the clean-up exercise would start as soon as practicable, especially considering that we were expecting funds from the donors.”
Noting that the Federal Government is concerned about issues in the Niger Delta, Prof. Osinbajo said the Buhari administration will ensure that its fulfils its New Vision for the Niger Delta. He said, “I want to emphasise that the Federal Government is committed to ensuring that the New Vision for the Niger Delta is faithfully executed, and the Ogoni clean-up is one of the critical component of the engagement. “This particular ceremonial signing of the escrow agreement is one that shows clearly that, not only are we committed to ensuring that the clean-up is done, but we are also committed that it is done transparently. We want to ensure that everyone is on board, and ensure that we achieve the results we want.
“We must also remind ourselves that it is an expensive process. We are told that the complete clean-up is one that may take a period of between 25 and 30 years. And this just shows the extent of the damage that has been done over decades in the homeland. We are certainly all looking forward to doing something quickly and to seeing that this exercise not only begin but is concluded expeditiously as possible. I think we must also remind ourselves that it is a very expensive process. We are told that the complete clean-up is one that may take a period of 25 to 30 years. This just shows the extent of the damage that has been done over decades in Ogoniland.”
Also in attendance were the Honourable Minister of State for Environment, Ibrahim Usman Jibril; the Chairman, Governing Council and the Board of Trustees (BoT), Ogoni Trust Fund, Mr. Wale Edun; Ogoni Representative and member, BoT, Ogoni Trust Fund, HRH Godwin Bebe Okpabi, other members of the BOT, as well as representatives of International Oil Companies (IOCs).
An initial $1 Billion has been earmarked for the clean-up exercise over a period of five years, Mr. Edun noted. He said, “As of now, we have already disbursed $10m for the initial arrangements for the clean-up. With this signing, we will now commence the draw down process for $170m. The $170m will be provided imminently from the first tranche of the $1 Billion of the Ogoni clean-up funding that was recommended by the UNEP, and was agreed by the authority. This is the first tranche and rest will come over the next few years.”
Similarly, the Honourable Minister of State for Environment, Ibrahim Usman Jibril, thanked the President and Vice President for “being the main drivers”, adding that the signing of the agreement marked “a significant milestone in the clean-up process.” In line with the recommendations of the UNEP report, some of the activities carried out by HYPREP so far include health impact assessment, evaluation of existing water facilities in Ogoni, demonstration of remediation technologies at sites in some of the impacted communities, among others. Also, recently, HYPREP commenced the procurement process for contracting experts for the remediation and clean-up of impacted sites, indicatingthe FG’s commitment to restore the region.
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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