Economy
$500m World Bank loan, $322m Abacha loot for cash transfer
Centre for Social Justice has said that a total of $822 million is the amount available to the federal government in its cash transfer programme. In a report of the meeting it had with the National Social Investment Office it said “All the money paid out so far has come from funds received through appropriation. “However, Nigeria signed a loan $500 million agreement with the World Bank for Conditional Cash Transfer Programme (CCTP) which will be starting this month, July 2018. Another sum of $322.5m will also be available from the proceeds of the returned Abacha Loot bringing the total to $822m.
“The Abacha Loot was channeled to the CTS due to the fact that the Swiss authorities who were repatriating the loot insisted on the oversight and monitoring role of the World Bank. The World Bank on its part insisted that the monitoring role had to align with existing World Bank projects, to ensure that they do not incur additional costs since they were already involved in a cash transfer scheme. The Federal Government selected the programme, out of various World Bank projects, and the World Bank agreed to engage with the role assigned to it since no new monitoring mechanism will be required or additional costs for the monitoring.
“So far, the NSIO is only doing cash transfer and not CCTP. For payments, the NSIO uses payment service providers, currently four in number. The payment is N5,000 a month but paid as N10,000 every two months. The payment service providers go to the communities for a period of ten days. And in the event they do not meet the recipient, money is held for the family for three payment circles which is 6 months before they payment is stopped. Each family, apart from nominating a recipient also nominates an alternate in the event the recipient is not available. Action Aid coordinates the civil society monitoring team.
“The process for the selection of beneficiaries is not arbitrary. It has inbuilt mechanisms to avoid abuse. Only persons who fall within the selection threshold/criteria are paid. First, there is a process for the compilation of a Social Register. The NSIO collaborates with the states through their focal person and coordinating unit domiciled in the respective Ministries of Planning. A memorandum of understanding is signed with every state. There is an existing National Living Standards Survey which gives information about poverty and living standards across the Federation. The NSIO team goes into the field focusing on the poorest 30 per cent in each state they are working in. Household and other relevant data is collected, analysed and verified through a process involving inter alia focused group discussions with groups such as women, youths, men and community leaders.
“Also, a check list has been developed which captures essential points that speak to poverty. The checklist involves a proxy means test in terms of ownership of assets, sources of income and access to services by the families that have been recommended as falling within the threshold. In the process, the first six decile is selected which represents the poorest of the poor. This process leads to the compilation of a Social Register in the state which will be used to determine those who are eligible and fall within the threshold required for disbursements. The Social Register is also used for other social interventions apart from the CTS. The Social Register contains bio data details, finger prints, photograph, etc. of persons who are to receive payments on behalf of families.
“The NSIO insists that state governors or senior government officials do not hijack the scheme in terms of nominating unqualified beneficiaries. Even the membership of state coordinating units is vetted to ensure that they are properly qualified and experienced and are not relatives of top government officials. Another level of review and verification is then done by the payment section of the NSIO to ensure that those on the Social Register and recommended as beneficiaries are actually qualified to receive payment. Sometimes, in the process of this second level of verification, families who were apparently qualified in the first phase of the recommendation may be disqualified if the information provided is found to be false.
“The payment targets families rather than individuals because the recipients are expected to use the payment to lift their families from poverty. Those who qualify after this second level of verification get paid. It is imperative to clarify that not everyone on the Social Register gets paid but the selection of the beneficiaries is from the Register. Some states had started the groundwork process of cash transfer before the commencement of the current federal programme. The states include Bauchi, Kogi, Osun, Niger, Kwara, Cross River and Oyo; they had signed direct agreements with the World Bank. Thus, they were the first to start benefiting considering that they were already ahead of other states when the process started. The payments are not done on the basis of federal character; it is about the individuals and families meeting the threshold criteria”.
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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