Economy
Governors to meet Buhari over new revenue allocation formula
State Governors under the aegis of Nigeria Governors’ Forum, NGF have concluded plans to meet President Muhammadu Buhari on the need to present the draft new revenue allocation formula to the National Assembly as a bill for enactment before the expiration of the current administration. Speaking with Journalists at the end of the meeting of the Governors in Abuja, Chairman of NGF and Sokoto State Governor, Aminu Tambuwal said, “We also discussed the new revenue formula submitted to Mr President by the Revenue Mobilisation, Allocation and Fiscal Commission and the need for us to approach Mr President on the need for him to present the new draft formula to the National Assembly before this administration winds up. “We are going to meet with Mr President as a forum and we’ll appeal to him to present that formula to the National Assembly. We will see.” The Revenue Mobilisation, Allocation and Fiscal Commission had in April 2022 presented the report of the review of the vertical revenue allocation formula to President Buhari when it failed to meet the 2021 deadline.
In 2021, the Chairman of the commission, Elias Mbam had said that the report would be presented to the President by December 31, 2021, but at the end of the day. the Commission failed to meet this deadline. The New formula proposes 45.17% for FG, 29.79% for states, 21.04% for Local Government Areas, LGAs. According to him, under Special Funds, the report by the commission recommended 1.0 per cent for Ecology, 0.5 per cent for Stabilisation, 1.3 per cent for Development of Natural Resources, and 1.2 per cent for the FCT. The old revenue formula was designed during the tenure of former President Olusegun Obasanjo. With the new formula, the Federal Government gets 52.68 per cent, the 36 states get 26.72 per cent while the 774 local government areas in the country share 20.60 per cent every month. The proposed formula, therefore, suggested an upward review for states and local governments, but a downward review for the Federal Government. Explaining the major reasons for the exercise, Mbam had said that since the last review was conducted in 1992, 29 years ago, the political structure of the country had changed with the creation of six additional states in 1996, which brought the number of states to 36. The number of local governments councils also increased from 589 to 774. Mbam had said, ‘‘There have been considerable changes arising from the policy reforms that altered the relative share of responsibilities of the various tiers of Government such as deregulation, privatisation and the lingering controversies over funding of primary education, primary healthcare.”
Speaking further on the meeting of the governors that was earlier scheduled to be a valedictory session for the 17 outgoing Governors, but was put off for another day, Tambuwal said, “It’s nothing unusual. It’s a normal meeting of governors where we discussed issues concerning the country, the sub-nationals and of course, democracy and good governance. “Today, we discussed the guidelines by the NFIU on financial regulation that is working on how to ensure that Nigeria is taking out of the grey list of the Financial Task Force. We also discussed the issue of primary healthcare and the progress made so far during our induction course. Some states that have attained some milestones are going to receive awards for their performance. We also discussed the new revenue formula submitted to Mr President by the Revenue Mobilisation, Allocation and Fiscal Commission and the need for us to approach Mr President on the need for him to present the new draft formula to the National Assembly before this administration winds up.
“We also discussed the issue of stamp duties being owed to both the Federal Government and the states and warehoused by the Central Bank and we are working to make sure that it is released for disbursement to both the Federal Government and the states.” On his assessment of the NGF as the outgoing Chairman, the Sokoto State Governor said, “As a forum and an institution of governance that we inherited from our leaders, the past governors; I believe that a lot of achievements have been made, particularly as we made sure that we maintain tand unity the cohesion, the non-partisanship of this platform and making sure that in all that we do, it is about Nigeria first and of course, our various states.”
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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