Economy
FG, States, LG share N8.15trn in 2019 – NEITI
The Nigeria Extractive Industries Transparency Initiative (NEITI) said the Federal, States, Local Governments and other statutory recipients by the Federation Accounts and Allocation Committee (FAAC) shared N8.15 trillion in 2019. NEITI disclosed this on it quarterly report released in Abuja, on Thursday. It said the figure is N377billion or 4.42 per cent lower than the 2018 figure of N8.524 trillion, but N1.728 trillion or 26.92 per cent higher than the total disbursements of N6.419 trillion made in 2017. Out of this amount, it said the Federal Government received N3.37 trillion, representing 41.4 per cent of total disbursements; the 36 states got N2.761 trillion (33.9%) while the 774 local governments shared N1.649 trillion (20.2%) of the total disbursements.
The publication which examined FAAC Disbursements to the Federal, States and Local governments in 2019, compared the disbursements of the previous years and made projections for the year 2020. It noted that in line with the revenue sharing formula, the FG received the highest disbursements from FAAC while local governments got the lowest. It further disclosed that revenue shared to the three tiers of government in the two previous years 2018 and 2017 followed the same pattern. “For 2018, total disbursements to FG, states, and local governments were N3.483 trillion, N2.850 trillion, and N1.667 trillion, respectively. For 2017, disbursements were N2.563 trillion to FG, N1.859 trillion to states, and N1.502 trillion to local governments,” it said. A comparative analysis of the disbursements made by FAAC to the federation in 2019 as against the sharing in the two previous years of 2017 and 2018 shows that the total disbursements to the Federal Government in 2019 were 3.08 per cent.
This, it said was lower than the disbursements in 2018, but 31.69 per cent higher than those in 2017.
Also, while the disbursements to the states in 2019 were 3.12 per cent lower than those in 2018, they were 48.54 per cent higher than those in 2017. It noted that the scenario was the same for the local governments in 2019, as their disbursements were 1.08 per cent lower than those in 2018, but 9.75 per cent %l higher than what was recorded in 2017. The NEITI Quarterly Review compared total FAAC disbursements between 2013 and 2019 and revealed that the total disbursements fell in three consecutive years from 2013 to 2016 and increased until 2018. However, the report revealed that increase in total disbursements stopped in 2019, as there was a decrease in 2019 over 2018 figures.
The Report further disclosed that over the seven-year period (2013 – 2019), 2013 recorded the highest disbursements of N9.742 trillion, followed by 2014 (N8.595trillion). ” 2018 came third with N8.524 trillion while 2019 had the fourth highest disbursements of N8.147 trillion.
“During the same period (2013-2019), 2019 witnessed the lowest percentage decline in disbursements (-4.42%) while 2018 had the highest percentage increase of 32.8 per cent,” it added.
The report identified a general rising trend in FAAC disbursements from the beginning of the year till about August 2019 when disbursements either fell slightly or remained relatively stable.
These figures, the report noted, “highlighted the volatile nature of government revenue in Nigeria owing to high fluctuations in oil prices. It added that central feature of these figures was that disbursements were higher in the second half of 2019 than the first half,” it said. It also disaggregated disbursements to the various tiers of government. The figures presented in the review show a wide disparity between net disbursements received by states.
According to the report, Osun and Cross River states have the lowest allocation of N24.14billion and N36.22Billion. It noted that Delta State received the highest disbursement of N218.58 billion.
“Put differently, if we assume that the net disbursements received by both states were fairly constant, then, the amount received by Delta State in 2019 alone can be used to cover disbursements to Osun State in nine years”, the Report further explained. It further stated that three states received less than N40 billion, nine states received between 40 billion and 49billion while fourteen states received between 50billion and 59billion respectively. ”Four states: Borno, Katsina, Edo and Kaduna got between 60 and 69billion and Kano State with N82.34 billion. Four states of the Niger Delta Region plus Lagos were among the big league of states that received over N100 billion from FAAC allocations. This is “Owed largely to the effects of 13 per cent derivation, ” it said.
The NEITI publication also highlighted other important aspects of the FAAC disbursements during the period under review.
These include significant increases in net disbursements to states between 2017 and 2018, in which Ebonyi State recorded the lowest percentage increase in net disbursements in 2017 while the highest percentage increase occurred in Osun State with 118.8 per cent increase in 2018. For most states (28 of them), it said that the percentage increase of the 2018 disbursements over the 2017 allocations were between 30 and 49 per cent. On the deductions from states’ allocations, the NEITI Quarterly revealed that Yobe State had the lowest deductions of N2.16 billion while Lagos State had the highest deductions of N44.45 billion. According to that Report,It is striking that the two states with the lowest net disbursements (Osun and Cross River) has the highest deductions (N27.19 billion and N18.55 billion respectively) after Lagos State. “However, deductions for most states (22 of them) were below N10 billion,” It added.
(NAN)
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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