Economy
Nigeria improves in U.S. fiscal transparency assessment
The United States has classified Nigeria among 14 countries that made “significant progress” towards meeting its minimum fiscal transparency requirements in 2019. The classification came in the 2020 Fiscal Transparency Report released by the U.S. Department of State. The document, released annually, assesses budget transparency of 141 national governments that receive U.S assistance. It uses criteria such as “public availability, substantial completeness and reliability of budget documents” in its assessment. The report also judges the countries based on the transparency of the process of awarding government contracts and licenses.
The 2020 edition, which covers Jan. 1 to Dec. 31, 2019, stated that 76 of the 141 countries met the minimum requirements of fiscal transparency. Fourteen of the 65 governments that did not meet the minimum requirements, including Nigeria, made “significant progress” during the review period.
The 13 other countries that made progress alongside Nigeria are Bahrain, Benin, Ecuador, The Gambia, Madagascar, Maldives, Mali, Mauritania, Niger, Somalia, Ukraine, Uzbekistan and Yemen.
In the 2019 edition, which covered Jan. 1 to Dec. 31, 2018, Nigeria was neither among 74 countries said to have met the minimum requirements nor among 13 adjudged to have made significant progress.
“Nigeria made significant progress by including allocations to and earnings from its state-owned enterprises in its budget documents. During the review period, the government made its executive budget proposal, enacted budget, and end-of-year report accessible to the general public, including online. Information on debt obligations was publicly available,” the latest edition said. It added that the government’s 2019 budget documents provided detailed estimates for revenues and expenditures. However, it said the documents provided “only high-level earnings and expenditures estimates from state-owned enterprises”. The Nigerian National Petroleum Corporation (NNPC), according to the report, did not make fully audited financial reports available to the public. “Actual revenues and expenditures varied significantly from estimated figures making budget documents unreliable. Nigeria’s supreme audit institution completed audits of the government’s budget and reportedly made audit reports on its website. The criteria and procedures by which the national government awards contracts or licenses for natural resource extraction were specified in law and regulation.
“The government has appeared to follow applicable laws and regulations in practice.
“Basic information on natural resource extraction awards was publicly available,” the report said.
It suggested three steps that the Federal Government should take to improve its fiscal transparency.
They include publishing its executive budget proposal within “a reasonable period of time”. A “reasonable period of time”, according to the report, means not less than one month before the start of the fiscal year and before the National Assembly passes the budget. It also means “within three months of enactment for the enacted budget, and within 12 months of the end of the fiscal year for the end-of-year”. The Federal Government has also been advised to produce and publish details of its supplementary budget “when actual revenues and expenditures do not correspond to those in the enacted budget”. The report urged the government to make “full audit reports for significant, large state-owned enterprises publicly available”. It, however, noted that while lack of fiscal transparency could be an enabling factor for corruption, it did not assess corruption. “A finding that a government ‘does not meet the minimum requirements of fiscal transparency’ does not necessarily mean there is significant corruption in the government. Similarly, a finding that a government “meets the minimum requirements of fiscal transparency” does not necessarily reflect a low level of corruption,” the report said.(NAN)
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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