Economy
NAICOM board, management biker over N4bn purchase building price
Indications emerged weekend that the Federal Executive Council may have been wrongly advised into approving the sum of N4 billion for the purchase of a new office complex in Abuja for the National Insurance Commission, NAICOM. The approval, according to reliable sources, was based on the presentation by the NAICOM management that they were buying a ready-to-use magnificent office complex that is better than what they are currently using in Garki 2 District of Abuja. The said building, which was initially valued at N2.5 billion but surreptitiously rose to N4 billion by the time the presidential assent was obtained. The cost of the building is expected to rise by the time agency fees and taxes are added but the commission may also need to expend additional N5 billion or more in order to put the carcass into a functional office use.
Disagreement was said to have reared its head between the board and management when the management of the commission went to draw down the cash but was promptly informed by the Director of Finance and Administration that there was no cash backing for the payment and that it would be imprudent to expend such cash towards the end of the year that could affect staff salaries and other recurrent expenditure. However many of the board members were dissatisfied with the discovery that the building for which the huge sum was to be committed into is still under construction against the position of management that it was a ready-to-use complex. Many of the board members were therefore opposed to paying the huge cash for the uncompleted structure. A source in NAICOM said that the Deputy Commissioner and other senior management staff of the commission are opposed the move on the ground that the building is not worth the huge amount and that the agency has a functional office complex in place.
But it was learnt that some top officials NAICOM working with some powerful officials in the Presidency have pushed for the cash to be taken out of the till of the commission on or before August 25, 2022. It was further gathered that moves are being made to get the money out of the Dollar Account of NAICOM with the CBN. Apparently to pave the way for the cash to be easily taken out and ‘spent on agreed formula’, the Director of Finance and Administration, who advised against the expenditure until the approval is cash-backed, has been removed from the headquarters and sent to Lagos office. In the place of the DFA, the leadership of NAICOM has handpicked an assistant director to handle the finances of the commission with immediate effect. Similarly, the commissioner for Insurance has gone ahead to effect the signatories with the accountant-general’s office so as to pave the way for the cash withdrawal. However, things came to a head when the Chairman of the Governing Board, led the members to inspect the building.
It was gathered that the board members discovered to their displeasure that the said completed office building was an uncompleted building originally meant for a hotel that could require another N5 billion to restructure before it can be put to office use. An inside said, “The Commissioner got the approval from FEC to acquire a befitting office complex for NAICOM but the approval is yet to be backed with cash.nSurprisingly, the man became desperate after being advised to get cash backing before drawing the cash. The commissioner decided to boycott necessary protocols by transferring the finance director and mounting pressure on an assistant director in the finance and accounts department to proceed to the Accountant General’s office to effect a change in the mandate to enable him move out the money.
The union and staff members are aggrieved and are battle ready should the purchase be carried out. This is so as some of them contacted claimed that there would be no money left in the account should the property be purchased in this budget year.
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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