Economy
Local Savings Can Help Reflate Economy—Finance Minister
By Dipo Olowookere
Nigeria’s Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has said the country’s economy can be reflated if local savings is encouraged.
The global economy is currently on a life support because of the coronavirus pandemic, which forced many countries to lockdown their economies.
Nigeria was not an exception as it only eased the lockdown early June after almost all economic activities were shut down for nearly three months in order to curb the spread of COVID-19.
Already, the fiscal authorities are looking ahead of post-COVID-19 era. It is believed that the virus will disrupt the ways things have been done in the past.
While speaking at the inauguration of the National Savings Strategy Working Group in Abuja at the weekend, the Minister canvased the need to mobilise local savings, saying it was capable of reflating the economy post COVID-19.
She tasked members of the group to develop easy instruments that are safe to be able to attract ordinary Nigerians to key into the strategy.
The terms of reference of the group include; To study the National Savings Strategy Paper and advise the federal government on the feasibility of the proposals or with recommended changes.
The team is also expected to advise on ways and means of mobilizing and channelling corporate and individual savings to accelerate domestic capital formation to support entrepreneurs and enterprise development in the urgent task of diversifying the economy and the deepening of the capital market;
The group is further expected to draft a National Working Paper that outlines a detailed roadmap on the implementation of the National Savings Scheme to be submitted for approval by the Federal Executive Council.
“Let us not forget the average Nigerian that wants to save and does not have huge sums, we need to develop easy instruments that are safe to be able to attract them. look at creating retail savings scheme to allow these Nigerians to save quickly by being able to enter and exit without unnecessary rigours.
“We need to mobilise local savings to reflate the economy, increase productivity by creating new enterprises and ensure that existing ones also thrive,” she said.
Mrs Ahmed commended the acting Director General of the Securities and Exchange Commission (SEC), Ms Mary Uduk, her team and the members of the Capital Market Master Plan Implementation Council (CAMMIC) for their dedication and commitment to the implementation of the masterplan so far.
She expressed optimism that ongoing efforts to review the masterplan to align the assumptions and projections with current realities, would redefine the road map for stakeholder participation in the Nigerian capital market.
“My expectation when the review is concluded is that we would have a strategic document that provides a clear pathway that would enable the Nigeria’s capital market achieve the goal to be Africa’s deepest, most liquid and largest capital market contributing not only to Nigeria’s socio-economic development but also serve as a global financial hub offering opportunities to other parts of Africa,” she said.
In her remarks, Ms Uduk said the SEC launched a 10-year capital market masterplan in 2015, a market wide strategic blueprint that had the buy-in of all stakeholders, aimed at making the market deeper, vibrant and more effective.
Ms Uduk said the implementation of the initiatives in the 10-year plan will transform the Nigerian market, facilitate the diversification of the economy, encourage savings and create wealth.
“This will no doubt grow investors’ confidence, improve the depth and breadth of the market in terms of product offerings, engender market integrity, and contribute to the country’s economic growth.
“I am glad to report that we have taken up the initiatives outlined in the masterplan document in a systematic manner while engaging with the government, and other critical stakeholders to successfully implement key initiatives while driving the execution of others,” she stated.
Ms Uduk disclosed that the need to establish a National Savings Strategy was outlined in the masterplan as one of the key strategies to enhance capital formation by mobilizing domestic funds for investment to drive rapid economic growth.
She said it envisaged the deliberate provision of risk capital as venture capital and private equity that are naira based and more committed to the long-term prosperity of Nigeria, as well as create a buffer to the instability created by foreign investors.
“On July 16, 2016, CAMMIC set up a 7-man technical committee as a first step towards achieving that goal.
“The technical committee developed a 102-page, 7-chapter position paper which reviewed historical data and information on the Nigerian savings-investment culture, the Nigerian financial system, population and economy and the savings and investment strategies of select countries.
“The purpose of the position paper was to ascertain the need for a national savings strategy in Nigeria and make recommendations on an implementation strategy.
“The position paper forms the basis for the work expected to be carried out by the national working group being inaugurated today,” Ms Uduk added.
She, therefore, assured that SEC will provide the necessary support and every other assistance within its capacity to the national working group to ensure that their job is done in a timely and efficient manner.
Also speaking, Chairman of the team, Mr Fola Adeola, said savings is one of the fundamentals of highly developed economies and pledged the readiness of the group to help drive the Nigeria economy.
“This assignment is coming at a most difficult time as people are worried about the effect of COVID-19 on the economy, but if we get it right now, by the time we ease into good times, we will be better for it,” he added.
Recall that the capital market masterplan proposed the National Savings Strategy (NSS) as one of the key initiatives to drive capital formation and investment necessary to support entrepreneurs and enterprise development in the urgent task of diversifying the economy and deepening of the capital market.
To lift the equity markets, galvanize new start-ups and expand existing projects, there should be deliberate provision of Naira based risk capital.
In essence nurturing, growing and channelling domestic savings to fund the creation of new enterprises will result in rapid economic growth, diversification of the economy, acceleration in the rate of job creation and increasing the productivity and output of the Nigerian economy.
By Adedapo Adesanya
TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the divestment of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
The Renaissance JV, formerly known as the SPDC JV, is an unincorporated joint venture between Nigerian National Petroleum Company Limited (55 per cent), Renaissance Africa Energy Company Ltd (30 per cent, operator), TotalEnergies EP Nigeria (10 per cent) and Agip Energy and Natural Resources Nigeria (5 per cent), which holds 18 licences in the Niger Delta.
In a statement by TotalEnergies on Wednesday, it was stated that under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil.
Production from these licences, it was said, represented approximately 16,000 barrels equivalent per day in company’s share in 2025.
The agreement also stated that TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the three other licences of Renaissance JV which are producing mainly gas, namely OML 23, OML 28 and OML 77, while TotalEnergies will retain full economic interest in these licences, which currently account for 50 per cent of Nigeria LNG gas supply.
Business Post reports that the conclusion of the deal is subject to customary conditions, including regulatory approvals.
“TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the sale of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
“Under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell to Vaaris its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil. Production from these licences represented approximately 16,000 barrels equivalent per day in the company’s share in 2025.
“TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the 3 other licenses of Renaissance JV, which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses, which currently account for 50 per cent of Nigeria LNG gas supply. Closing is subject to customary conditions, including regulatory approvals,” the statement reads in part.
The development is part of TotalEnergies’ strategies to dump more assets to lighten its books and debt.
By Aduragbemi Omiyale
The trading licence of Monument Securities and Finance Limited has been revoked by the regulatory arm of the Nigerian Exchange (NGX) Group Plc.
Known as NGX Regulations Limited (NGX Regco), the regulator said it took back the operating licence of the organisation after it shut down its operations.
The revocation of the licence was approved by Regulation and New Business Committee (RNBC) at its meeting held on September 24, 2025, a notice from the signed by the Head of Market Regulations at the agency, Chinedu Akamaka, said.
“This is to formally notify all trading license holders that the board of NGX Regulation Limited (NGX RegCo) has approved the decision of the Regulation and New Business Committee (RNBC)” in respect of Monument Securities and Finance Limited, a part of the disclosure stated.
Monument Securities and Finance Limited was earlier licensed to assist clients with the trading of stocks in the Nigerian capital market.
However, with the latest development, the firm is no longer authorised to perform this function.
Economy
NEITI Advocates Fiscal Discipline, Transparency as FG, States, LGs Get N6trn in Three Months
By Adedapo Adesanya
The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for fiscal discipline and transparency as data showed that federal government, states, and local governments shared a whopping N6 trillion Federation Account Allocation Committee (FAAC) disbursements in the third quarter of last year.
In its analysis of the FAAC Q3 2025 allocation, the body revealed that the federal government received N2.19 trillion, states received N1.97 trillion, and local governments received N1.45 trillion.
According to a statement by the Director of Communication and Stakeholders Management at NEITI, Mrs Obiageli Onuorah, the allocation indicated a historic rise in federation account receipts and distributions, explaining that year-on-year quarterly FAAC allocations in 2025 grew by 55.6 per cent compared with Q3 of 2024 while it more than doubling allocations over two years.
The report contained in the agency’s Quarterly Review noted that the N6 trillion included 13 per cent payments to derivative states. It also showed that statutory revenues accounted for 62 per cent of shared receipts, while Value Added Tax (VAT) was 34 per cent, and Electronic Money Transfer Levy (EMTL) and augmentation from non-oil excess revenue each accounted for 2 per cent, respectively.
The distribution to the 36 states comprised revenues from statutory sources, VAT, EMTL, and ecological funds. States also received additional N100 billion as augmentation from the non-oil excess revenue account.
The Executive Secretary of NEITI, Mr Sarkin Adar, called on the Office of the Accountant General of the Federation, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) FAAC, the National Economic Council (NEC), the National Assembly, and state governments to act on the recommendations to strengthen transparency, accountability, and long-term fiscal sustainability.
“Though the Quarter 3 2025 FAAC results are encouraging, NEITI reiterates that the data presents an opportunity to the government to institutionalise prudent fiscal practices that will protect the gains that have been recorded so far in growing revenue and reduce vulnerability to commodity shocks.
“The Q3 2025 FAAC results are encouraging, but windfalls must be managed with discipline. Greater transparency, realistic budgeting, and stronger stabilisation mechanisms will ensure these resources deliver durable benefits for all Nigerians,” Mr Adar said.
NEITI urged the government at all levels to ensure the growth of Nigeria’s sovereign wealth and stabilisation capacity, by committing to regular transfers to the Nigeria Sovereign Wealth Fund and other related stabilisation mechanisms in line with the fiscal responsibility frameworks.
It further advised governments at all levels to adopt realistic budget benchmarks by setting more conservative and achievable crude oil production and price assumptions in the budget to reduce implementation gaps, deficit, and debt metrics.
This, it said, is in addition to accelerating revenue diversification by prioritising reforms that would attract investments into the mining sector, expedite legislation to modernise the Mineral and Mining Act, support reforms in the downstream petroleum sector, as well as the full implementation of the Petroleum Industry Act (PIA) to expand domestic refining and value addition.
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