Economy
FG, States, LGAs, Others Share N3.88trn in Six Months
By Adedapo Adesanya
The Nigeria Extractive Industries Transparency Initiative (NEITI) has said the federal, 36 states, 774 local governments and other statutory recipients shared the sum of N3.88 trillion in the first six months of the year.
This was contained in the latest edition of the agency’s quarterly report on disbursements by the Federation Accounts and Allocation Committee (FAAC).
A breakdown of the disbursements showed that N1.53 trillion went to the federal government, while the 36 states got N1.29 trillion with the 774 local government areas receiving N771.34 billion.
A look at the amount received by the highest tier of government showed that the N1.53 trillion was 4.3 per cent lower than N1.59 trillion it got in the same period of last year and 7.36 per cent lower than the N1.65 trillion it received in the first half of 2018.
For the states, the N1.29 trillion received was lower for the second straight year. By comparison, it was 2.8 per cent lower than the N1.35 trillion disbursed in the first half of 2019 and 5.6 per cent lower than the N1.37 trillion disbursed in the first half of 2020.
Equally, for local government areas, the 2020 first half disbursements were 2.64 and 3.04 per cent lower than the corresponding disbursements for 2019 and 2018, respectively.
On a quarterly basis, disbursements in the second quarter of the year were 1.09 per cent higher than total disbursements in Q2 2019 and 3.66 per cent lower than the one for Q2 2018.
According to the report, “FAAC disbursements in the second quarter of 2020 stood at N1.934 trillion.
“This was made up of N739.2 billion to the Federal Government, N629.3 billion to state governments, and N375.4 billion to the 774 local government areas.”
According to the report, the total FAAC disbursements in the second quarter of 2020 was slightly lower than the N1.945 trillion disbursed in the first quarter of 2020.
This aligned with the projections made in the previous issue of the NEITI Quarterly Review, which projected lower FAAC disbursement in the second quarter.
The report said the 0.55 per cent decrease in Q2 2020 would have been worse but for a rebound in oil prices in the second quarter as a result of ease of lockdowns by countries across the world.
Another factor that contributed to the reasonable decline in the period was the adjustment of the official exchange rate by the Central Bank of Nigeria (CBN) from N307 to a Dollar to N360, which resulted into more Naira earnings.
NEITI noted that FAAC disbursements in the first quarter and second quarter of 2020 were very volatile, with the difference in total distributable amount between months ranging between N58.9 billion and N199.3 billion.
It said, “During this period, the disbursements were very volatile in the first half of 2020, compared to 2018 and 2019.
“Unlike 2018 and 2019 where aggregate disbursements increased and decreased in successive months, in 2020, they fell for two straight months, increased in one month, and then decreased for two straight months.”
It further explained that during the period in 2020, aggregate disbursements fluctuated by large amounts, compared to 2018 and 2019.
“Aggregate disbursements were N716.3 billion in January and this fell to N647.4 billion in February.
“Thereafter, disbursements fell to N581.6 billion in March, before increasing to N780.9 billion in April.
“Disbursements then fell to N606.2 billion in May and to N547.3 billion in June.
“These figures indicate differences of N68.9 billion between January and February, N65.7 billion between February and March, N199.3 billion between March and April, N174.7 billion between April and May, and N58.9 billion between May and June.
“For comparison, the highest inter-month difference in the first half of 2018 was N62.9 billion, while the corresponding figure for 2019 was N63.5 billion.
“Thus, there have been very wide fluctuations in aggregate disbursements so far in 2020,” the report stated.
By Adedapo Adesanya
Businesses in the country expect the Naira to gradually appreciate against the US Dollar between now and January 2027, according to the Central Bank of Nigeria’s (CBN) July 2026 Business Expectations Survey Report released on Thursday.
The report showed that the Business Confidence Index (BCI) remained positive throughout the review period despite perceived macroeconomic challenges. It noted that all sectors expressed optimism about the economy, with the electricity, gas and water sector posting the highest Business Confidence Index of 59.4 points and the strongest expansion prospects for August 2026.
According to the report, “In July 2026, the Business Confidence Index was 5.7 points, reflecting continued optimistic sentiment among formal businesses.”
It attributed the positive sentiment mainly to increased demand (22.3 per cent), economic diversification (21.4 per cent), and improved access to finance (15.0 per cent). However, respondents identified inflation (27.7 per cent), energy-related challenges (23.4 per cent), insecurity (22.4 per cent), and heightened geopolitical uncertainties (16.5 per cent) as the major factors weighing on business confidence.
On the outlook by broad sector, the central bank said confidence remained positive across all sectors in July. The Industry sector recorded a modest improvement, with its index rising to 11.5 points from 10.5 points, while the Services sector increased to 3.6 points from 2.9 points.
By contrast, the Agriculture sector recorded a significant moderation, with its index falling to 3.4 points from 12.2 points.
Despite this, the apex bank said the six-month outlook remained upbeat, with confidence indices across all sectors indicating positive expectations over the review period.
On the macroeconomic outlook by region, the report noted a divergence in sentiment, with businesses in Northern Nigeria expressing stronger confidence than their Southern counterparts in July. Nevertheless, respondents across all regions maintained positive expectations for August.
By Aduragbemi Omiyale
A programme, tagged Probate and Unclaimed Monies Awareness and Investor Clinic, has been organised by the Securities and Exchange Commission (SEC).
The event, held on Thursday, August 6, 2026, was put together to educate investors and beneficiaries on how to recover unclaimed monies and inherited investments in the Nigerian capital market.
It is part of a nationwide awareness campaign launched by the capital market regulator in collaboration with Meristem Registrars and Probate Services Limited to improve investor protection, financial literacy and confidence in the capital market.
According to the Director General of the agency, Mr Emomotimi Agama, the campaign is to help investors and beneficiaries understand the procedures for recovering investments due to them while strengthening public confidence in the Nigerian capital market.
Thousands of investors and beneficiaries across the country remain unaware that they may be entitled to unclaimed funds arising from scheme consideration, return monies or inherited investments belonging to deceased relatives, largely because they are unfamiliar with the required documentation and claims procedures.
“Investor protection remains at the heart of the Commission’s mandate. Through this awareness campaign and Investor Clinic, we are bringing regulators and market operators together to help investors and beneficiaries understand the claims process, recover investments due to them and strengthen public confidence in the Nigerian capital market,” the SEC DG stated.
At the programme, participants received one-on-one support from SEC officials, registrars and other capital market professionals on issues relating to unclaimed investments, share ownership, probate, share transmission and beneficiary claims.
By Adedapo Adesanya
President Bola Tinubu has reaffirmed plans to list the entire Nigerian National Petroleum Company (NNPC) Limited on the Nigerian Exchange (NGX) Limited.
The President made this known on Thursday while receiving a delegation of the NGX Group Plc at the State House, Abuja.
The team was led by the NGX Group chairman, Mr Umaru Kwairanga, and its chief executive, Mr Temi Popoola. The President was briefed on the capital market’s growth from about N30 trillion in 2023 to N160 trillion.
According to a statement by the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, President Tinubu said the planned listing of NNPC would form a key part of his administration’s ongoing economic reforms.
He described the move as part of broader reforms aimed at expanding investment opportunities for Nigerians and deepening the country’s capital market.
“One day, not just the arms and legs, the totality of it will be listed on the Nigerian Exchange,” he said.
The President also reaffirmed that his administration’s target of building a $1 trillion economy remained achievable, citing Nigeria’s population and human capital as major advantages.
“I can see the excitement in the room. All I can do is to celebrate you all today. When we took over, it was very challenging. I had to talk to myself and define my background to accept the assets and liabilities of my predecessor. I asked for the job, and I have to do it,” President Tinubu said.
Reflecting on the administration’s monetary reforms, the President praised the Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso’s role in restoring confidence in the financial system.
“My capable partner in one of the thinking and reasoning days was Yemi Cardoso, whom I put at CBN. We were in the negative with monetary policy and the reserve. We had N30 trillion printed, and there were liabilities. I thank you very much, Yemi Cardoso,” he said.
President Tinubu said the performance of the stock market reflected broader improvements in the Nigerian economy.
“If the stock market is doing well, then we are doing well. We can teach this in classrooms to our undergraduates. If they can be in the classroom without the harrowing feeling of how to pay and what to pay, then we can build a nation of success and prosperity. My assurance to you is that I won’t stop reading, thinking and supporting you,” he said.
The President also reiterated his belief in private sector-led investments, recalling his longstanding support for the Dangote Refinery project.
“If we can push the private sector to invest in the economy wisely, then we will grow. It is one reason why I backed Aliko Dangote even before I became President. God bless the soul of Muhammadu Buhari. We discussed how we can support the private sector to go into the refinery business,” he added.
On his part, NGX Group CEO Temi Popoola told the President that the total value of listed equities had increased from nearly N30 trillion when the administration assumed office in 2023 to about N160 trillion, with projections to reach N230 trillion before the end of the year.
“The picture today is that when you took office in 2023, the total value of stocks listed in Nigeria was just shy of N30 trillion. Today, Mr President, that figure is N160 trillion. By the end of this year, with the listings we are seeing in our market, we expect that figure to rise to N230 trillion,” Popoola said.
He added that the Nigerian All-Share Index had risen from 52,000 points to 244,000 points, while the reforms had created an estimated 500,000 to 900,000 new millionaires, attributing the market’s performance to the administration’s reforms and expressing confidence that Nigeria could attain a $1 trillion economy before 2030.
