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World Bank again urges Nigeria to end N6trn subsidy, injects proceeds in infrastructure

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3 years ago

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As food prices continue to rise across the country, President Muhammadu Buhari, Tuesday, launched $575 million Rural Access and Agricultural Marketing Project, RAAMP, to provide roads for farmers and boost rural economy. Buhari who was represented by the Governor of Borno State, Prof Babagana Zulum, in his speech vowed to leave no Nigeria hungry and that would be one of his legacies he wishes to leave behind in 2023. According to him, the project is consistent with his developmental vision since he became President in 2015.Meanwhile, RAAMP an initiative of the Federal Government aimed to improve rural access and agriculture marketing in participating States is to strengthen the financing and institutional base for effective development, maintenance, and management of the rural road network.

The project is supported by the World Bank, French Development Agency (AFD), and International Development Association (IDA).The project with a total outlay of $575 million will be jointly financed by the International Development Association, IDA, with a contribution of $280 million; French Development Agency (AFD) is contributing $230 million, and the Government is contributing $65 million respectively. The project has 19 participating States, which later will include other states in future. He said: “This occasion underscores my deepest desire to leave behind an enduring legacy of a Nigeria where no citizen goes to bed on an empty stomach. “For me the institution launch of this project signals the restoration of hope to our teeming rural population that their welfare remains a key objective of my administration.

“Over the cause of this administration we have midwifed several projects in partnership with various development partners, notably the World Bank, French Development Agency, African Development Bank, and others. These projects range from infrastructure to agriculture. We have made all efforts to make that these projects aligns with the Economic Recovery and Growth Plan.”In a good will message the World Bank Country Director, Shubham Chaudhuri, said Nigeria should suspend subsidy of N6 trillion on Premium Motor Spirit, PMS, and inject the money into agricultural development.

Chaudhuri said, “The development aids of the RAAMP is about connecting farmers to markets and giving hope to farmers in Nigeria depends on agriculture, connecting the poor, and also for Nigeria’s potential in casing of moving up the agricultural value chain that as road to shared prosperity for everyone. We are very happy to be supporting Nigeria, the Federal Government as well as the States on this. Second point is scale; you have to scale up, we can have it achieved anywhere as Nigeria did like 230,000 kilometers of rural or secondary roads because Nigeria offers over 87 per cent as far as we can tell, which we can get 30,000 kilometers of roads that are passable but the remaining 170,000 are not.

“So if you think of tackling that problem and scale you think of issue of affordability. We are interested in providing financing not just for RAAMP but so many other development needs all over Nigeria in the last two and half year. The board has approved over $9.2 billion and seems to be the largest for any country in the world but for me is almost a footnote relative to the kind of financing Nigeria needs. The vision to achieve national programme in this case rural roads and connectivity, which is basically affordable as well and is a real partnership, our financing is a little bit of contribution. The federal government comes in with their contribution. The scale of financing is needed would be achieved, we will also remain be happy to contribute as much as we can for this and other priorities.

“For the states and federal governments to be able to provide such financing there have to be some choices that are made and one of the biggest choices Nigeria needs to make whether Nigeria can continue to put N5 trillion to its PMS subsidies every year or N6 trillion probably next year. What could be done with this N6 trillion both at your state and local government levels?” However, he said, the road projects’ challenge is maintenance, which he asserted that they do not become the proverbial ‘sand castles on the beach’. “You have to scale up, we can have it achieved anywhere as Nigeria did like 230,000 kilometers of rural or secondary roads because Nigeria offers over 87 per cent as far as we can tell, which we can get 30,000 kilometers of roads that are passable but the remaining 170,000 are not. So if you think of tackling that problem and scale you think of issue of affordability. We are interested in providing financing not just for RAAMP but so many other development needs all over Nigeria in the last two and half years.

“The board has approved over $9.2 billion and seems to be the largest for any country in the world but for me is almost a footnote relative to the kind of financing Nigeria needs. The vision to achieve national programme in this case rural roads and connectivity, which is basically affordable as well and is a real partnership, our financing is a little bit of contribution. The federal government comes in with their contribution. The scale of financing is needed would be achieved, we will also remain be happy to contribute as much as we can for this and other priorities. For the states and federal governments to be able to provide such financing there have to be some choices that are made and one of the biggest choices Nigeria needs to make whether Nigeria can continue to put N5 trillion to its PMS subsidies every year or N6 trillion probably next year. What could be done with this N6 trillion both at your state and local government levels?”     

Speaking on sidelines of the presidential launch of RAAMP, the Bayelsa State Governor, Senator Douye Diri, who hailed the launch of RAAMP said the intervention will go a long way to solve most of the problems occasioned by the recent devastating flood in the State. Diri said, “We are looking for every avenue of assistance and RAAMP readily comes into it for access roads, especial agriculture, and Bayelsa State is more of a rural State. So keying it RAAMP will also alleviate damages caused by the flood we have experienced this year.”

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Nigeria champions African-Arab trade to boost agribusiness, industrial growth

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2 days ago

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December 5, 2025

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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.

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FEC approves 2026–2028 MTEF, projects N34.33trn revenue 

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2 days ago

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December 4, 2025

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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.

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Economy

CBN hikes interest on treasury Bills above inflation rate

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2 days ago

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December 4, 2025

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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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