Economy
FG, states and LGAs shared N8.8 trillion in 2012
* Outrage greets govts squandering of N80 trn in 9 years
THE sum of N8.8 trillion was disbursed to the three tiers of Nigerian government from the Federation Account between January and December 2012 from the statutory and Value Added Tax (VAT) allocations. The receipt came mostly from oil revenue, customs duties and VAT receipts.
According to a table compiled by Economic Confidential, this amount exclude other allocations that were occasionally made to the states from the Excess Crude Account, Domestic Crude Account, SURE-P, NNPC Refund and foreign exchange differentials. It also excludes states and councils’ internally generated revenue.
The disclosure is coming as outrage trailed the squandering of N80 trillion by the three tiers of government between 2005 and 2013 going by their budget appropriations and allocations to the local councils.
A careful scrutiny of the N8.8 disbursements showed that the states can be conveniently categorized into the ‘boys and men’s clubs’ with a few of the states taking hundreds of billions, others taking a little less and the majority going home with ‘paltry’ amounts.
Akwa Ibom State appears to be the ‘king of boys’, coasting home with a princely N217 billion followed by Rivers which received N177 billion and Lagos N168 billion in the 12 months of 2012. States like Ebonyi (N45bn), Gombe (N48bn) and Nassarawa (N49bn) emerged as the poorest states. The allocation to the states included the share of their respective local government councils which they cornered since almost all the funds to the councils are controlled by governors who determine the administrators at the third tier of government.
The disparity in the allocations to the states came as a result of the indices developed by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) upon which the monthly disbursements are made by the Federation Accounts Allocation Committee (FAAC) chaired by the Minister of State for Finance. The indices include population, land mass, derivation, equality, internally generated revenue and other social development factors like school enrolment, hospital beds and road networks.
Outrage greets squandering of N80 trn
Director, League for Human Rights, Jos, Mr. Nankin Bagudu, said it was sad that after spending such a huge of sum money, most of the citizenry were still swimming in poverty:
“If the figures are correct then they are mind-blowing. There is no way we can spend such huge amount and remain how and where we are today. The challenge then is not the lack of money but using it prudently and creatively,” he said.
First civilian Governor of Edo State, Chief John Odigie- Oyegun spoke in like manner lamenting that the three tiers of government had not provided the much-sought democracy dividends to Nigerians.
His words: “Only a few states are beginning to show that they are trying to put in place democratic dividends for their people. But for the Federal Government, it has not been a success story on the use of its share of the resources to provide democracy dividends for the people. We always raise issues in this country, but we never follow up, so, we always give them the license to do what they like. It is a sad commentary and one day, the people will rise up either with their votes or something; all these nonsense will stop.”
On his part, the Minority Whip in the House of Representatives, Mr. Samson Osagie while noting that N80 Ttillion allocation also included funds for personnel cost, however agreed that not much had been achieved in the provision of democracy dividends to Nigerians in the last nine years.
“I agreed with the principle that not much has been achieved in terms of development. This has been underpinned by corruption cases by the various individuals and people that have managed the resources in the last nine years. Virtually, all the resources managers since 2007 are facing one form of corruption charges or the other. We also run an expensive government and bureaucracy and that have affected our level of spending in the country”, he said.
Money spent in 9 years has not impacted positively on Nigerians
Chairman Board of Trustees of International Society for Civil Liberties and the Rule of Law, INTERSOCIETY, said that the N80 trillion spent by the three tiers of government in the past nine years had not impacted on the lives of majority of Nigerians.
Speaking with Vanguard in Onitsha, Umeagbalasi regretted that the chunk of the money was borrowed from local and foreign creditors, adding that even as the country’s debt profile continues to rise, the people have continued to wallow in abject poverty.
He said: “This staggering amount ought to have boosted the infrastructure in the country, including power, but the reverse is the case. Every year, Nigerians are given reasons for non-functioning of basic things of life in spite of the enormous resources the country has.
“If you look at the three tiers of government, the only one that has recorded some form of success is the state. The federal and local governments have remained drain pipes on the economy. For instance, the condition of the 34000 kilometers of Federal Government roads across the country has been a source of worry to Nigerians as more than 80 per cent of them are in terrible condition.
“The roads tagged state government roads are much better, while those expected to be the responsibility of the local governments are the worst. As far as we are concerned, 95 per cent of allocation to the local governments is a waste.
Relatedly, Bauchi State Chairman of the Action Congress of Nigeria, (ACN), Alhaji Bappa Mohammed Dafida regretted that the N80 trillion was not channeled towards laudable projects that would change the lives of the masses.
According to him, “N80 trillion naira in nine years is more than enough to take Nigeria out of the woods. But up till now, there is still abject poverty among the people. The question is: Can the federal, state and local government actually account for the money allocated to them?”
Lamenting that the local governments are not autonomous with State Governors taking advantage of the operation of joint account to misappropriate funds, Dafida said: “The Governors who are receiving huge allocations from the Federal Government are the ones kicking against the autonomy of the local government councils because they have their own hidden agenda. They are enjoying how they are misusing the funds meant for local government for their personal gains and that is why up till now there are no real capital projects at the grassroots”.
Also, Adamawa State Chairman of the Congress for Progressive Change, CPC Alhaji Ibrahim Waziri, said he would not be surprised if 60 – 70 per cent of the N80 trillion went into private pockets as there is nothing on ground to show that such amount was spent on developmental projects.
“It is sad for such a colossal amount to have been disbursed to the three tiers of governments in the country within the last nine years and within the same period the nation is witnessing decay in infrastructure, high level of corruption and poverty, decline in our educational standard and growing insecurity among others.”
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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