Economy
Press Statement: Federal Government Debunks AFDB Report On The Nigerian Economy
Reports in several print and social media have cited the African Development Bank (AfDB) in its 2013 African Economic Outlook as rating Nigeria’s poverty reduction drive “low”. We believe it is necessary to dispel the bogus claims and disingenuous innuendos contained in the report, and instead invite attention to the steady progress the country is making in creating wealth and reducing the ranks of the poor.
2. In the first place, the Nigerian economy is doing much better than any other of its size on the continent, and the poverty statistics which were rehashed by the media from the 1996–2010 figures on which the AfDB report is based have been overtaken by the various interventions by President Goodluck Jonathan’s administration in the last two to three years.
3. The facts even in today’s newspapers (Monday12 August 2013) including Businessday and the Nation Newspaper Editorial, speak of a Nigerian economy that is witnessing impressive growth and improvement in performances in our schools.
4. It is pertinent to point out that we are growing the Nigerian economy faster than any other country’s economy on the continent, with this year’s GDP growth put at 6.7%.
5. Nigeria remains the highest destination for Foreign Direct Investment inflows into Africa over and above South Africa and Egypt. This is the direct result of the fundamental reforms being implemented under President Jonathan’s Transformation Agenda.
6. The Nigerian Capital Market has fully recovered, recording impressive performance as reported in the front page lead story of Businessday today (Monday, 12 August 2013).
7. Our public schools are gradually recovering from decades of decline as WAEC performances have risen to 64.2% from 39.57% of students who pass with minimum of five credits (The Nation’s Editorial Monday, 12 August 2013).
8. The Trains are back on our railways from Lagos to Kano, while we fix the Port Harcourt-Maiduguri line in readiness for use by 2014. New standard gauge Rail-Lines are in the works from (Lagos-Ibadan; Abuja-Kaduna; Warri-Ajaokuta-Itakpe; Abuja City Light Rail; etc).
9. Our Airports terminals now look like modern airports with space and beauty.
10. Reforms in the Power Sector and the new power projects being completed will stabilise power from next year.
11. Our Gas Master Plan has attracted huge investments by Chevron, Shell, Dangote Group and other investors who are now transforming our gas into major income earner for the country.
12. New Industrial City at Ogindingben in Delta State is unfolding with the construction of a petro-chemical industries complex. About 100,000 workers will be employed for the construction phase, which has begun.
13. New Gas Pipelines are on the way from the South-South to the North and South-West to utilise gas for power generation and for the domestic economy.
14. These and many more are the reasons why the opposition is desperate to highlight negative stories taken from outdated statistics which ignore current efforts and results, just to give the opposition opportunity to mislead Nigerians.
15. As earlier stated, it is important to point out that the AfDB report is a dated report considering that the data being referred to cover between 1996 and 2010. Over the past 2—3 years, the administration of President Goodluck Jonathan has done a lot to fight poverty, create jobs, and reduce inequality. This government has undertaken significant policy reforms targeted at addressing the challenges identified in the report. These policy interventions have contributed positively to turning things around beyond the picture painted in the report.
16. Poverty is a national challenge that transcends the whole country cutting across party divides. In reality, the responsibility of fighting poverty does not rest solely with the Federal Government. States and Local Governments share in this responsibility too. State governments hold the key to fighting poverty in their states. Dealing with poverty as a partisan phenomenon would be trivializing the problem. All hands need to be on deck to fight poverty. Federal Government efforts are mainly at the policy level, while actual projects/programmes are carried out by the states. In spite of this, Federal interventions to reduce poverty have taken place in Agriculture; Health; Education; Housing; Communication Technology; Works; Transportation and other sectors of the economy.
17. The AfDB report presents poverty, inequality, and unemployment in Nigeria without the appropriate and illuminating global context. Yet, these three challenges have increasingly become global issues, which policymakers around the world are grappling with everyday. For example, South Africa’s unemployment rate and Gini Coefficient, which measures the dispersion in income and wealth amongst individuals, is 26% and 0.63, respectively, compared to Nigeria’s 24% and 0.45. The Gini Coefficient for other comparator countries like Brazil, China, and Singapore are 0.52, 0.47, and 0.48, respectively. Despite our favourable comparisons, these numbers trouble us. And that is why the Administration of President Goodluck Jonathan has been working very hard to address them.
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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