Economy
Dependence on Federal Allocation by States, LGs no Longer Sustainable—FG
By Dipo Olowookere
States and local governments in Nigeria have been informed by the Federal Government that their dependence on federal allocation was no longer sustainable because of dwindling revenues from crude oil sales.
In view of this, they have been challenged to consider looking for alternative sources of revenue for sustainable development in their areas.
Minister of Budget and National Planning Minister, Mr Udoma Udo Udoma, speaking on Monday at a two-day workshop organized by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), noted that commitment in the pursuit of the objectives of the economic diversification initiatives of the Federal Government will help in increasing the revenue generating activities of states and Local Governments.
The Minister explained that it was for the purpose of shoring up liquidity levels and ensuring the continuous provision of critical services and obligations pending improvement in revenue flows that in 2016, the Federal Government initiated a series of programmes with the states.
Represented at the workshop by his Special Adviser, Mr Bassey Akpanyung, the Minister said he was glad about the relative fiscal stability that the interventions have so far brought to the states; noting however that a lot still needs to be done, which was why the workshop became imperative.
In order to gain further traction on the achievements made so far, the Minister said states and Local Governments must exploit areas of their comparative advantage to promote economic diversification for enhanced revenue generation, job creation and improved livelihood for the teaming populace.
He was convinced that all the states and local governments have diverse but untapped opportunities to generate significant internal revenues through economic diversification. agriculture, solid minerals, tourism, entertainment, arts and culture, and ICT are all emerging sectors that hold the potentials in the states and local governments, he pointed out.
Beyond ramping up internal revenue generation capacity, the Minister said states and Local Government must equally pay attention to efficiency in its utilization.
“The ideals of fiscal sustainability, accountability and transparency demands that we avoid wasteful spending of our scare resources, plug all identified leakages from our system, and channel the funds properly towards delivering the common goods to the people,” he said.
Consequently, he said it is logical to argue that the citizens will be more willing and committed to pay their taxes when public resources are seen to be better managed than otherwise; and if government expects the people to pay their taxes, it must also deliver on expectations.
Mr Udoma drew attention to the fact that the circumstances leading to the current hash economic conditions resulted from the abandonment of the non-oil revenue generating sources and surrendering to the fortunes of crude oil revenue earnings.
“Today, sadly, we are paying heavily for the many years of neglect and failure to diversify the country’s revenue sources away from crude oil,” he added.
Pointing out that the path to change usually comes through tough choices and decisions, the Minister said Nigeria has come to that point where making such choices with regard to the country’s economic survival has become imperative.
“Indeed, the time has come for us to embrace the various opportunities outside the oil sector in response to the current changing realities, to achieve sustainable growth and development,” Mr Udoma said.
Business Post reports that the workshop was organized to discuss alternative sources of revenue generation to foster sustainable growth and development of the country.
By Adedapo Adesanya
Vert, a global cross-border payments platform, has announced a new solution under Verto Business Accounts that enables US-registered businesses to move money seamlessly between the United States and Africa.
With the ability to open a US Dollar account in their business name and have access to trusted emerging market payment rails, companies can now receive, hold, and transfer funds faster, more cost-effectively, and with greater control.
US-registered businesses with operations in Africa often encounter significant banking limitations, with US banks frequently delaying or blocking transactions to or from African markets, imposing high or hidden FX costs, and offering limited access to Emerging Market payment corridors. Businesses without a US bank account registered in their own name must rely on fragmented tools or intermediaries to move funds to Africa, creating operational inefficiencies and slowing growth.
Verto’s new solution directly addresses these challenges by giving US-domiciled businesses access to named USD accounts and a robust cross-border payment infrastructure, enabling them to move funds and settle transactions in local currencies with speed and efficiency.
Built for venture-backed startups, import-export SMEs, and investors funding emerging market innovation, this solution will enable clients to receive funds directly into a named USD business account from US based customers or investors, convert and settle between USD and local currencies such as NGN and KES quickly and at lower cost, as well as hold, receive, and pay in 48 currencies from a single dashboard.
The solution will also allow users to pay contractors, suppliers, and offshore teams instantly via local payment rails. It also equips teams with virtual cards to spend in 11 currencies without fees and leverage specialised onboarding and monitoring that navigates both US and African regulatory requirements
By combining US and African compliance expertise, Verto’s Business Accounts empowers companies to maintain a US domestic presence for investors, customers, and suppliers while using deep-liquidity rails to pay global contractors and settle trades in local currencies efficiently, ensuring uninterrupted trade, payroll, and investment flows, without the risk of blocked or delayed transactions.
“We believe founders building across borders should not be constrained by the limitations of traditional banking,” said Ola Oyetayo, CEO of Verto. “Providing named accounts in the US empowers businesses with the funds they need to operate globally, connecting the US and Africa more efficiently without friction.”
With over 8 years of experience and $25 billion in annual global cross-border transaction volume, Verto continues to provide the infrastructure, expertise, and trusted payment rails businesses need to operate confidently across borders and scale globally.
By Adedapo Adesanya
The Presidential Enabling Business Environment Council (PEBEC) has directed Ministries, Departments, and Agencies (MDAs) to suspend the introduction of new policies and regulatory changes to prevent disruptions to businesses.
The directive was issued in a statement by PEBEC director-general, Mrs Zahrah Mustapha-Audu, on Monday in Abuja, noting that the move is part of the Federal Government’s broader effort to improve regulatory quality, ensure policy consistency, and strengthen Nigeria’s ease of doing business environment.
The council emphasised that the suspension will remain in place until all MDAs fully comply with the Regulatory Impact Analysis (RIA) Framework, which governs evidence-based policymaking across government institutions.
The council said the directive is aimed at ensuring that all government policies are backed by verifiable data and do not negatively impact businesses or investors.
“It is imperative to emphasise that no new reform or policy will be permitted to proceed without being grounded in clear, verifiable evidence,” said Mrs Mustapha-Audu.
“The framework provides the structured mechanism through which such evidence-based decisions can be rigorously developed, assessed, and validated.
“This directive is necessary to prevent policy shocks that may adversely affect businesses, investors, and citizens, as well as to eliminate policy inconsistencies and frequent reversals.”
She added that the government remains committed to working collaboratively with regulators and does not intend to embarrass any institution.
The Regulatory Impact Analysis (RIA) Framework, introduced in January 2025, is designed to improve transparency and ensure that policies undergo proper evaluation before implementation.
All MDAs are required to align new policies and amendments with the RIA framework before approval and rollout.
The framework has been circulated by the Office of the Secretary to the Government of the Federation (SGF) and is available on the PEBEC website.
MDAs are encouraged to seek technical support from the PEBEC Secretariat to ensure proper implementation.
Exceptions to the directive will only be granted in cases of urgent national interest, subject to appropriate approvals.
PEBEC noted that the framework will help institutionalise evidence-based policymaking, enhance transparency, and improve stakeholder confidence in government decisions.
By Aduragbemi Omiyale
Subscription for the Federal Government of Nigeria (FGN) savings bonds for April 2026 has opened, a circular from the Debt Management Office (DMO) on Tuesday, April 7, 2026, confirmed.
The debt office is selling the retail debt instrument for this month in two tenors of two years and three years.
Offer for the savings bonds opened today and will close on Friday, April 10, 2026, a part of the disclosure stated.
The 2-year FGN savings bond due April 15, 2028, is being sold at a coupon rate of 13.082 per cent per annum, while the 3-year FGN savings bond due April 15, 2029, is being sold at a coupon rate of 14.082 per cent per annum.
The interests are paid every quarter, and the bullet repayment to subscribers on the maturity date.
The bonds are sold at N1,000 per unit, subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.
Interested investors are required to reach out to the stockbroking firms appointed as distribution agents by the DMO via the agency’s website.
An FGN savings bond qualifies as securities in which trustees can invest under the Trustee Investment Act. It also qualifies as government securities within the meaning of the Company Income Tax Act (CITA) and the Personal Income Tax Act (PITA) for tax exemption for pension funds, amongst other investors, meaning it is tax-free.
It can be used as a liquid asset for liquidity ratio calculation for banks, and is listed on the Nigerian Exchange (NGX) Limited to allow for easy exit (liquidation) before maturity by selling at the secondary market.
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