Economy
Senate urges CBN to extend deadline for old Naira notes to May 31
Senate has urged the Central Bank of Nigeria, CBN to extend the deadline for the exchange of old Naira notes from the January 31 deadline to May 31, 2023. The Senate has also urged the CBN to open an exchange window where people that don’t have bank accounts to deposit their old notes. The resolution of the Senate was sequel to a motion by Senator Sadiq Umar, APC, Kwara North who demanded for the extension to July 31, just as he was worried by the insistence of the apex bank that there would be no such extension. The CBN had on October last year, said the old naira notes would seize to be legal tender as from January 31, but the Senate in December passed a resolution urging the CBN to extend the deadline to June 30. Moving the motion, Umar recalled that the Senate in it’s resolution on Dec. 28, 2022, urged the CBN to extend the use of the old notes from Jan. 31 to June 30. He said however, that the apex bank had insisted on terminating the use of the old Naira notes by end of Jan.
The Senator who lamented that there was no enough new Naira notes in circulation and as such, moved that the date should be extended to July 31, said: “Experiences around the world have shown that such abrupt decision if not controlled usually created chaos. The Senate should extend the use of the old notes to July 31.” In their contributions, most Senators overwhelmingly threw their weight behind the extension, citing scarcity of the new notes both in the banks and at the various Automated Teller Machine points across the country. Supporting the motion, Senator Ibrahim Hadejia, noted that the call for extension was for their constituents and not for lawmakers personal benefits. He said “in my constituency, no Automated Teller Machine (ATM) is dispensing the new notes.” On his part, Senator Adamu Aliero, said that the the policy would inflict untold hardship on people living in the rural areas, “The CBN governor should be invited.”
Also contributing, Senator Adamu Bulkachuwa said that the extension was necessary otherwise there would be chaos. In her contribution, Senator Biodun Olujimi, who decried that in her local government area, about 90 per cent of the people have not seen a glimpse of the new Naira notes, called on the apex bank to “look away from the elections”. She said that if the date was not extended, it would lead to collateral damage which would not augur well for the economy. On his part, Senator Ali Ndume called on the Senate to use its oversight responsibility on the CBN to “order the the CBN governor to extend the date”. He said that the power of the senate should not be played down calling on the senators to stand firm on the call for extension. For Senator Sam Egwu who was the only Senator that opposed the motion, “Nigerians do not have the culture of keeping their money in the bank. It is in Nigeria where cash is used arbitrarily; other countries use electronic means. Nigerians are just averse to change.”
In his remarks, the President of the Senate, Senator Ahmad Lawan who noted that most of the senatorial districts did not have banks, said: “In rural Nigeria, there are no banks and people transact businesses with cash more often. There is no doubt that we must have window for exchange. We must have policies by the CBN to have bank branches established in rural areas. We need this extension for the most ordinary Nigerians.” Lawan then put the prayers in the motion to vote and the lawmakers voted in support of the extension of the deadline from January 31 to July 31.
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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