Economy
Abia, Ebonyi, Ondo, Taraba, others owe arrears of salary to workers – BudgIT
BudgIT, a civic-tech organisation leading the advocacy for transparency and accountability in Nigeria’s public finance, has said that Abia, Adamawa, Ebonyi, Ondo and Taraba owe their workers 3 years or less in payments. It said this after its survey across the 36 states in the federation showed that at least 12 states owe their workers at least one month’s salary as at July 28, 2022. BudgIT conducted the survey to spotlight and identify state governments that have consistently failed to meet the essential requirement of governance and employee compensation, thereby subjecting their workers to unpaid labour and harsh living conditions. The survey showed that Abia state currently owes its state tertiary institution workers Six (6) months’ salary, while Ebonyi has not paid its pensioners in the last six (6) months. Secretariat workers in Taraba complained of irregular salary payments for up to six (6) months, while lecturers at state tertiary institutions and midwives in the state-owned hospital in Ondo State have not been paid a dime in the last four (4) months.
According to Mr Joseph Anthony (Pseudonym), a secondary school health institution worker in Abia, the Abia state government has not paid salaries in the last 10 months. The payment made to him in 2021 was his basic salary, which did not include other allowances. While speaking about the current realities of affected workers, Iniobong Usen, BudgIT’s Head of Research and Policy Advisory, said that civil Servants’ remuneration, whether at the state or federal level – as and when due – is a necessary part of the employer/employee relationship. This affects the smooth working of the government. This is not only because the survival and livelihood of civil servants depend on timely salary payment but also because the government’s refusal to pay smacks of the disregard for the legal obligation to pay.
“Nigerian civil servants are unfortunately no strangers to delays and gaps in monthly salary payments. Despite belonging to the executive implementing arm of the government, they have been left without payments in many instances. With several states guilty of this non-payment, civil servants are often at wit’s end at ‘month end’,” he added. The delay in salary payments for civil servants in Nigeria has been prominent for at least half a century. To make the situation even worse, these delays are evident at the national and sub-national levels. This state of affairs has been affirmed to constitute a breach of the basic contractual provisions that exist between an employer and employee and failed to recognise national legislation on employee rights at the continental and international levels. Despite relatively small coverage, there is clear evidence that several states are struggling to meet up with paying the new Minimum Wage, which moved to Thirty Thousand Naira (N30,000.00k), a situation which is worse off when compared to the periodic payment of the previous Eighteen Thousand Naira (N18,000.00k) minimum wage.
Without a doubt, many state governments are currently battling with the inability to meet up with salary obligations, alongside rising debt, interest rates and inflation. BudgIT posits that this state of affairs is a combination of ‘governance failure’ bordering on mismanagement and administrative inefficiency, an unnecessarily large wage bill which itself may be due to poor planning and hiring practices, and a problem of broader macroeconomic downturns which in some sense are beyond the control of the state governments, as they have little influence over monetary and fiscal policies. Therefore, BudgIT calls on the various state governments to urgently address this glaring inability to pay state workers’ salaries as the attitude, enthusiasm, productivity and survival of state workers and their families are directly related to the timeliness of their remuneration.
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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