General
CBN Urges States to Reduce Reliance On Overdrafts, Short-term Financing
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has called on state governments to cut down on overdrafts and short‑term financing.
According to a statement by the apex bank on Sunday, the advice was given by its Deputy Governor in charge of the Economic Policy Directorate, Mr Muhammad Abdullahi, during an engagement with sub‑national stakeholders, facilitated through the Nigerian Governors Forum Secretariat.
Mr Abdullahi advised them to ensure that borrowing decisions align with debt sustainability thresholds, improve budget realism and revenue forecasting, prioritise expenditure, and better synchronise fiscal calendars with prevailing macroeconomic conditions.
He emphasised the critical role of State Governments in ensuring a successful transition to an Inflation Targeting (IT) monetary policy framework, stressing that sustained price stability can be achieved only through coordinated fiscal discipline across all tiers of government.
Mr Abdullahi described the move toward inflation targeting as a shift to a more rule‑based, transparent, and forward‑looking monetary framework that demands close collaboration with state authorities.
According to him, while the CBN retains responsibility for deploying monetary policy tools to control inflation, fiscal actions, particularly at the sub-national level, play a significant role in shaping inflation outcomes within a federal system such as Nigeria’s.
Mr Abdullahi explained that inflation targeting is fundamentally about managing expectations, warning that uncoordinated or expansionary fiscal actions by State Governments could either reinforce or undermine monetary policy signals.
He noted that states influence inflation through multiple channels, including borrowing decisions, domestic debt accumulation, expenditure patterns, wage bills, capital project execution, salary arrears, overdrafts, contractor financing, and weak coordination on the Federation Account Allocation Committee (FAAC) receipts, cash management, and debt servicing.
“In an inflation‑targeting regime, persistent, unpredictable or expansionary fiscal behaviour at the sub‑national level can significantly undermine price stability,” he said.
The Deputy Governor emphasised that the absence of fiscal dominance, where government borrowing pressures compel the bank to monetise deficits, is a core prerequisite for successful inflation targeting.
He noted that this principle applies not only at the federal level but equally to State Governments.
He urged the states to reduce reliance on overdrafts and short‑term financing, ensure that borrowing decisions align with debt sustainability thresholds, improve budget realism and revenue forecasting, prioritise expenditure, and better synchronise fiscal calendars with prevailing macroeconomic conditions.
Under the inflation‑targeting framework, Mr Abdullahi outlined four key responsibilities for state governments: maintaining fiscal discipline and predictability; pursuing responsible borrowing aligned with medium‑term fiscal frameworks; strengthening coordination on cash and debt management; and enhancing internally generated revenue mobilisation.
He warned that unplanned expenditures, excessive supplementary budgets, and unsustainable debt accumulation could trigger liquidity shocks and elevate inflationary risks.
He reiterated that inflation targeting is a collective national commitment to stability, credibility, and long-term prosperity.
While the CBN remains accountable for delivering price stability, he said the framework’s success ultimately depends on disciplined fiscal behaviour across all tiers of government.
By strengthening coordination and embedding price stability as a shared objective, he added, state governments would support the new framework and lay firmer foundations for growth, job creation, and improved social welfare.
On his part, the Director-General of the NGF, Dr Abdullateef Shittu, represented by Mr Olalekan Yunusa, commended the Governor of the apex bank and the bank’s leadership for what he described as the strategic foresight behind the engagement, particularly the decision to involve sub‑national fiscal authorities at an early stage of the transition process.
He noted that the shift from a monetary-targeting framework to inflation targeting reflects a deliberate commitment to price stability as the central anchor of economic policy.
He added that sustainable macroeconomic stability cannot be achieved through monetary policy alone and requires disciplined coordination across all tiers of government.
By Modupe Gbadeyanka
The Nigeria Agricultural Quarantine Service (NAQS) has asked to be integrated into the B’Odogwu platform of the Nigeria Customs Service (NCS).
This call was made by the head of NAQS, Mr Vincent Isegbe, during a meeting with the Comptroller-General of Customs, Mr Adewale Adeniyi, in Abuja on Wednesday.
Mr Isegbe, who used the visit to congratulate Mr Adeniyi on the extension of his tenure as Chairperson of the World Customs Organisation Council, which he described as recognition of his dedication and leadership, praised what he called an excellent working relationship with Customs.
He outlined areas for closer partnership, including integrating NAQS into Customs’ B’Odogwu platform, joint enforcement operations, and coordinated efforts to detect fake certification and fraudulent documentation.
In his remarks, Mr Adeniyi commended his guest for the partnership, promising that NAQS will provide technical support for the new Customs laboratory.
According to him, this is one of the avenues to deepen collaboration between the two agencies on intelligence sharing, trade facilitation and national security.
He informed Mr Isegbe that his organisation was moving to harmonise inspection procedures across the country’s ports and border stations, a step he described as critical to promoting consistency, transparency and efficiency in cargo clearance nationwide.
He also stated that customs training facilities would be opened up to NAQS officers as part of a broader capacity-building push.
“We must expose our officers to the broader concept of national security. Border management goes beyond revenue collection,” Mr Adeniyi said, stressing that Customs sees itself as the anchor institution coordinating Nigeria’s multi-agency border protection efforts.
By Adedapo Adesanya
Nigeria’s solid minerals sector recorded a boom of 337 per cent in two years, jumping from N16 billion in 2023 to over N70 billion in 2025, according to the chief executive of the Solid Minerals Development Fund (SMDF), Mrs Fatima Umaru Shinkafi.
She disclosed that the sector also recorded a remarkable 33.5 per cent real growth in 2025, while reforms attracted fresh investment commitments worth about $2.6 billion, including a $1.3 billion alumina refinery described as the single biggest mining investment in Nigeria’s history.
Mrs Shinkafi gave out these figures at the maiden Annual Lecture of the Faculty of Physical and Earth Sciences, University of Lagos (UNILAG), where she declared that stronger collaboration among government, industry and academia is the master key to unlocking Nigeria’s vast mineral wealth.
Delivering the keynote lecture titled Building Nigeria’s Solid Minerals Future: The Power of Academia, Government and Industry in Partnership, she lamented that despite Nigeria’s deposits of more than 44 commercially viable minerals spread across over 500 locations, the industry still contributes less than one per cent to the nation’s Gross Domestic Product (GDP).
She, however, said the story is changing under the Seven-Point Agenda of the Minister of Solid Minerals Development, Mr Dele Alake, with reforms already repositioning mining as a major driver of economic growth.
The SMDF boss also unveiled the Early-Stage Mineral Exploration and Research Grant Endowment (EMERGE), describing it as Nigeria’s first competitive research funding platform dedicated to geoscience studies in universities.
According to her, the initiative will fund mineral exploration, critical minerals research and postgraduate studies, while equipping successful applicants with technical training and access to investment opportunities.
She challenged UNILAG researchers to seize the opportunity by submitting quality proposals, insisting that research remains the foundation for building a globally competitive mining industry.
Mrs Shinkafi then urged young women to embrace careers in science and mining, stressing that Nigeria’s hidden mineral wealth can only be fully unlocked through the innovation, skills and determination of the next generation.
By Modupe Gbadeyanka
The chief executive of Dangote Cement Plc, Mr Arvind Pathak, has championed net-zero cement production at the Global Cement and Concrete Association (GCCA) CEO Strategic Dialogue in Madrid, Spain.
He specifically charged African producers to lead the next phase of sustainable industrial growth by accelerating decarbonization while expanding cement production to meet the continent’s rising infrastructure needs.
“With Africa’s infrastructure demand continuing to rise, the sector must pursue growth while embracing innovative pathways to reduce carbon emissions,” Mr Pathak said.
“A key takeaway, especially for the African cement sector in the context of the evolving global economic and regulatory landscape, is the need to accelerate our decarbonization pathway through increased utilisation of alternative fuels, reduction of clinker content in cement and investment in innovative cement technologies suited to local realities,” he added.
Mr Pathak said the forum reinforced the opportunity for Africa’s cement industry to deliver sustainable growth while reducing carbon emissions, stressing that Dangote Cement remains committed to reducing its carbon emissions intensity by 20 per cent by 2030, using 2021 as the baseline year.
It was gathered that the two-day event allowed participants to discuss strategies to achieve net-zero emissions and drive sustainable growth across the cement and concrete value chain.
The meeting also highlighted the industry’s growing role in global climate action, particularly through the GCCA’s engagement at international climate platforms and its efforts to advance collaborative solutions for sustainable infrastructure development.
It also provided a platform for industry leaders to address critical priorities, including low-carbon construction, industry outlook, policy advocacy and financing mechanisms needed to accelerate the transition to net-zero.
Participants also reviewed GCCA’s global climate leadership efforts, particularly its engagement at COP30, where the industry is positioning itself as a key partner in climate solutions through initiatives such as the Cement Breakthrough and other multi-stakeholder collaborations.
Discussions underscored the growing importance of innovation, technology and strategic partnerships in supporting the cement and concrete sector’s net-zero ambitions while helping to meet global infrastructure needs.
Dangote Cement pledged to reduce its carbon emissions intensity by 20 per cent by 2030 from a 2021 baseline, as part of a broader strategy that includes increased use of alternative fuels, renewable energy investments, improved operational efficiency and clinker optimisation.
