Economy
Fashola presents N497.3 bn Budget for 2013
Gov. Babatunde Fashola of Lagos State on Wednesday presented a budget of N497.3 billion to the State Assembly for the year 2013. The estimates represent an increase of 1.08 per cent, compared with the 2012 figure of N491.9 billion. The capital to recurrent ratio of the budget is 54:46 per cent, as against the 53:47 per cent in 2012. The deficit financing requirement proposed in the budget is N40.537bn which is 0.3 per cent of the state’s Gross Domestic Product (GDP), compared to the 1.19 per cent for 2012.
Capital Receipts for the 2013 budget is put at N22.912bn and is made up of: Grants, N3bn; Investment Income, N0.332bn and Other Capital Receipts, N19.580bn. The capital expenditure of N268.364bn consists of: Core Capital, N237.209bn; Capital Development (Dedicated), N19.580bn; Grants, N3bn; Counterpart Funding, N2.5bn; Special Expenditure, 5bn, Risk Retention Fund, N0.075bn and Contingency Reserve of N1bn.
The sector allocation of the budget in size and percentage are: General Public Service, N114.076bn (22.94 per cent); Public Order and Safety, N18.799bn (3.78 per cent); Economic Affairs, N156.273bn (31.43 per cent); Environmental Protection, N44.131bn (8.87 per cent). Others are; Housing and Community Amenities N46.149bn (9.28 per cent); Health N42.498bn (8.55 per cent); Recreation, Culture and Religion N5.749bn (1.16 per cent); Education N64.343bn (12.94 per cent); Social Protection N3.259bn (0.66 per cent); and Contingency N2.000bn (0.44 per cent). Fashola said that all hands must be on deck to ensure that the proposed bill, when approved, was implemented to impact meaningfully on the lives of the citizens.
He explained that the 2012 budget recorded a remarkable achievement. He also said that the government was working toward improving the budget performance in the fourth quarter. The governor stated that the 2013 budget represented 54 per cent of capital expenditure and 46 per cent recurrent expenditure, as against 53 percent and 47 percent for the year 2012.
“Also, there would be N6.992 bn Overheads; Dedicated Expenditure: N21.753 bn; Subvention: N31.892bn; Debt Charges External: N.069bn, and Debt Bond of N15.938bn,’’ he said. Fashola also stated that the Capital Receipt for the fiscal year would be N22.192bn, while Capital Expenditure would gulp N268.64bn. He said the state had defined the core aspects of its administration with the acronym (PATH)- Power, Agriculture, Transportation and Housing.
Fashola said that the state government had planned to install 141 transformers in 40 communities in the entire state before the end of the year. The governor also promised that the ongoing light up project, in which not less than 36 streets had been taken care of, would benefit from more street lights “as the year gradually comes to an end”. He said the state government had taken a bold step on agriculture, by acquiring 75 hectares of land in Badagry for rice, and for job initiative.
Fashola also said that the state would collaborate with Ogun government to acquire additional land ”which is bigger than the entire Lagos State”—for agriculture.
“We have made giant leaps in agriculture, in spite of our challenges. The Imota Rice Mill is a project that is doing fine, providing food and jobs for our people.’’ He said that the state government had achieved tremendously in the area of transportation.
“The Public Works Corporation (PWC) has done tremendously well by repairing 593 roads in the last one year. It is equivalent of 104.47 km, while a total of 390 roads have been constructed in the last one year,’’ he said. Fashola advised those people who opposed the Traffic Law to embrace change, because the rewards were many even if they could not see them today. The law is the critical driver of our economy in the state.’’ On housing, the governor said that apart from the already constructed houses for the people, 15 more sites were also being planned for.
He said that the housing projects were cited in Ilupeju, Mushin, Alimosho, Ogba, Igando and Surulere. On sports, Fashola said that 15, 000 athletes would be participating in the National Sport Festival (NSF), tagged “Eko 2012’’. The governor said that the event would bring about an increase in trade and tourism. The event would facilitate trade, tourism and exhibit our unmatchable hospitality in the state,’’ the governor said.
Mr Adeyemi Ikuforiji, the Speaker of the House, said that the governor had done well for the state in the last five years of his being in office. “I commend your resilient nature, you work assiduously for the state and put the state on the world map as far as good governance and democratic experience is concerned,’’ he said. He described the governor as dependable, conscientious and insightful. The Speaker however, advised the governor to brace up for more challenges, as shown in the recent development.
“This is no time for you to rest on your oars as Lagos residents’ hope must be kept alive. May I urge you to use your unique position to address the challenges of our deplorable roads. It is believed that democracy should translate to good roads,’’ he said. The lawmaker also advised the governor to pay attention to the deplorable state of education, youth unemployment and dwindling value system. He said that the budget proposal would be carefully scrutinised, to meet the expectations of the people. “We will scrutinise it with an eagle eye, and give prompt and comprehensive attention.’’
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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