Economy
Senate to provide legislative support for CBN Naira redesign
Senate has resolved to provide necessary legislative support for Central Bank of Nigeria (CBN) Naira redesign. As a result the Senate mandated its Committee on Banking, Insurance, and other Financial Institutions to embark on an aggressive oversight to ensure that Nigerians are adequately protected from the CBN, Banks, and other agencies involved in the process. Resolutions of the Senate were sequel to a motion on the policy by the Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Uba Sani. Senate has thus urged Nigerians and the general public to comply with the central Bank of Nigeria’s directive to deposit cash holdings at their respective commercial banks, just as it called on the the Senate to support the decision of the CBN given the aforementioned benefits of the currency redesign to the nation.
However, there was a rowdy session on the floor of the Senate when Senators debated the motion on the Naira Redesign Policy of the Central Bank of Nigeria. In their contributions, though Senators threw their weight behind the move to redesign the Naira, several were not too comfortable with the deadline of January 31st, 2023 to pay all cash in circulation into banks, saying the period was too short. The Senators who called for aggressive enlightenment on the part of the CBN especially in the rural areas to ensure that all Nigerians are made aware of the new policy, however insisted that such mass awareness creation would help Nigerians in the rural areas to comply with the policy so as not to lose their hard earned income. The lawmakers also urged the CBN to put measures in place in the face of ubiquitous Financial Technology (FinTech) to ensure that the local populace are able to bank their cash with ease within the stipulated time, adding that such a measure of would also ensure the security of the local population who might be waylaid and dispossessed of their cash by criminal elements like bandits and insurgents.
Earlier in his presentation, Senator Uba said that the Senate, “Notes that terrorism will also be halted as assess to the large volume of money outside the banking system used as a source for funds to pay ransom to bandits/terrorists. Notes also that the redesign of the currency would assist in the fight against corruption as the exercise would rein in the higher denomination used for this purpose and the movement of such funds from the banking system could be tracked easily. Aware that the CBN’s policy directs that new design notes are to be introduced on 15 December 2002 while the current will cease to be legal tender after 31 January 2023. Further aware that Nigerians have legitimate concerns about the time-frame within which to comply with the policy however there is a need for Nigerians to comply with the time-frame considering the importance of the process to the economy. Convinced that the introduction of any new banknote is a proud and important sment for the country.” Trouble started when senators Philip Aduda; Ali Ndume; James Manager; Sabi Abdullahi; Biodun Olujimi; Betty Apiafi, Barau Jibrin, Chukwuka Utazi, and Orji Uzor Kalu, supported the CBN policy, but suggested the extension of the deadline for compliance.
On his part, Kalu specifically urged the Senate to invite the Governor of the CBN, Godwin Emefiele, to throw more light on the policy while he should be persuaded to extend the deadline to April 30, 2023. But Senator Gabriel Suswan who disagreed with Kalu and others, claimed that CBN Governor has always shunned the Senate invitations, just as he urged his colleagues to ignore the CBN policy and let the country damn the consequences. Senator Bassey Akpan, stressed the need to support the CBN Governor. He said there should be no discussion on the matter. However, the submissions of Suswan and Akpan did not go down well with those seeking the extension of the deadline and the chamber turned rowdy. When Akpan started his presentation at 11.44am, he was still standing even as at 11. 49, the Deputy President of the Senate, Senator Ovie Omo-Agege, tried frantically to have Akpan have his seat as there was hot argument and normalcy returned to the Senate after ten minutes.
Senator Ovie Omo-Agege said it was the prerogatives of the CBN to redesign the naira and put deadline for compliance and the Senate, after the rowdy session, offered to provide legislative support for the policy.
In his contribution, Senator Ali Ndume said that there are are only five banks in the entire 27 local government areas in Borno State since the emergence of insurgency in the state. On her part, Senator Biodun Olujimi, who noted that one and half month was too short to withdraw all the money in circulation to avoid shutting down the economy, said thaf the Senate should invite the CBN Governor for further explanation on the issue. For Senator Betty Apiafi, rural banking had been shut down hence the January deadline should be extended, just as she said that counterfeiting wasn’t enough to change the Naira, adding that the implications of the redesign should be criticality examined in view of the fact that bandits have said they would be collecting ransom I’m foreign currencies. Senator Barau Jibrin, said that Naira redesign cannot not halt terrorism but could only reduce it. On his part, Senator Chukwuka Utazi said, “because of the rural nature of the country, the leadership of the Senate should interface with the CBN Governor to explain the implications on the peculiarity of the country. CBN should visit all the rural communities to get first hand information.” On his part, Senator Orji Uzor Kalu, suggested the extension of the deadline from January 31 to April 31. The Committee on Banking and Finance should meet with the CBN Governor on the matter.
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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