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Agriculture must get ‘rightful place’ in financial system – CBN

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The Central Bank of Nigeria (CBN) hopes to lift agricultural lending above the current level of less than five per cent of banks’ credit, with Governor Olayemi Cardoso declaring that agriculture must receive its “rightful place in our financial system and national priorities.”

Cardoso spoke in Abuja on Tuesday at the inauguration of the newly constituted Board of the Agricultural Credit Guarantee Scheme Fund.

He told the audience that the event marked “a defining moment — a bold statement of intent that signals a new dawn for agricultural financing in Nigeria.”

He said agriculture remained the backbone of the economy, contributing more than one-fifth of GDP and employing most Nigerians, yet “it receives only a small fraction of formal credit — less than 5 per cent of banks’ lending goes to the agricultural sector.

According to him, this chronic underfunding has stifled productivity and expansion for millions of farmers.

“It is a reassessment of norms: we will no longer accept business-as-usual,” he said. “Instead, we embrace a future where agriculture is accorded its rightful place.”

Cardoso said the fund, which guarantees up to 75 per cent of the value of agricultural loans, had helped banks lend to farmers for decades, including those considered “unbankable.”

He noted that the scheme had been strengthened following a 2019 amendment that expanded its share capital from N3bn to N50bn and broadened its mandate.

He said the reform was designed to deepen inclusivity, adding that the revised Act now provides for a board composed not only of government officials but also of farmers’ representatives.

“Such inclusivity is strategic: it enshrines partnership between policymakers, financiers, and the farming community in guiding the Scheme’s activities,” he said.

Cardoso described the sector as standing at the “crossroads of unprecedented opportunity” under the Federal Government’s Renewed Hope agenda.

He said the vision was to build a resilient, technologically advanced and inclusive agricultural economy that “ensures food security, reduces poverty, and creates wealth for millions of Nigerians.”

According to him, smallholder farmers constitute 80 per cent of Nigeria’s farmers and produce about 90 per cent of food, yet they continue to face high barriers to credit.

“Many lack collateral or credit history — a situation we can no longer afford, given that these same smallholders feed our nation and drive our rural economy,” he said.

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He urged the new board to focus on strategic priorities that could unlock value quickly.

He called for deeper financial inclusion to reach women and young farmers, noting that rural women were key actors in agriculture but often had less access to credit and technology.

“Studies indicate nearly 60 per cent of rural women do not use mobile internet, limiting their access to emerging digital services,” he said.

He asked the board to collaborate with microfinance banks, cooperatives, and fintech firms, and to use group lending, mobile money, and agent banking to ensure that “a lack of collateral or a remote location is no longer an insurmountable barrier to financing.”

Cardoso also tasked the board with establishing stronger oversight, monitoring, and evaluation systems using technology and data.

He said modern tools, including satellite imagery and digital dashboards, should be deployed to track loan performance, crop progress and emerging risks.

“Every naira guaranteed must deliver real value on the farm and in the marketplace,” he said.

The governor warned that the task ahead may appear daunting, given the size and complexity of agricultural value chains.

But he insisted that success depended on “innovation, integrity, and unyielding dedication.”

“With today’s inauguration, we have filled a void and renewed our commitment to a prosperous, food‑secure Nigeria,” he said. “Let us cultivate a future where every farmer can easily access the financing they need, every field yields its full potential, and every Nigerian can enjoy affordable, plentiful food on their table.”

Cardoso congratulated the newly inaugurated board and assured them of the central bank’s support.

Also speaking, the chairman of the newly inaugurated board, Dr Olusegun Oshin, said the scheme must focus on the grassroots, where the majority of farmers struggle without credit or storage facilities.

He told the gathering that “those that feed us are those weak, poor farmers very far away in the villages and who don’t have access to credit,” adding that even when they manage to raise funds, “they don’t even store it properly because they don’t have the capacity for storage.”

Oshin said the board would ensure the fund was impactful at the level of peasant farmers and smallholders.

“This fund… will be focused on ensuring that it is impactful at the grassroots level, at that level where Nigeria is faced, the level of the peasant farmers,” he said.

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He also welcomed the inclusion of agribusiness and allied sectors, noting that technology and accountability would be central to implementation.

Oshin noted that proper reporting must show that money given to clusters of farmers produced measurable results.

He added that detailed monitoring and evaluation would strengthen the case for more resources, while stressing that reaching more farmers efficiently would improve food supply nationwide.

Oshin thanked the apex bank for the opportunity and assured that board members would uphold ethical standards.

The PUNCH earlier reported that the agricultural sector contributed N30.5tn, in nominal terms, to the Gross Domestic Product in the third quarter of 2025.

Crop production drove the agro-sector’s growth, which stakeholders attributed to improved investor confidence.

The figure from the National Bureau of Statistics represents one of the sector’s strongest quarterly showings in recent years, with crop production alone accounting for N20.13tn or 65.99 per cent.

The sector also posted a real GDP growth rate of 3.79 per cent year-on-year, surpassing its Q3 2024 performance of 2.55 per cent by 1.24 percentage points, and outperforming its 2.82 per cent growth in Q2 2025 by 0.97 points amid poor access to bank credit.New Nigeria People’s Party, Femi Aina, has been re-elected for another term of four years.

Aina, according to a statement on Tuesday, was elected alongside other executives during the state party’s congress held at the party’s secretariat at Adatan, Abeokuta, the capital of the state.

Prof Tajudeen Gambo, Chairman of the Organising Committee of the state congress, alongside the Secretary of the committee, Abdullahi Dogonnama, as well as Alhaji Ibrahim Sai Kure, and Alhaji Hamza Masu, who are members of the committee, supervised the congress.

The congress was also monitored by INEC officials and security agents.

Aina, in his acceptance speech, said that his re-election marked a new dispensation for the state chapter of the party to begin massive mobilisation ahead of the 2027 elections.

The party chairman pledged to foster unity, bringing everyone on board irrespective of tribes, tongues and religion, with the sole aim of strengthening the party membership in the state.

Aina said, “This is no doubt a new dispensation for Ogun NNPP. We are going to ensure equal representation of various groups within the party. We are going to kick off massive mobilisation ahead of 2027 because everyone is important to our resolve to chase APC out in 2027.

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“We will reach out to the Kwa Kwa Siya group, we will reach out to women, and we will make sure that women decide issues affecting women. It will be a new leadership with renewed dedication and vigour to serve and deliver Nigerians from the incompetent government of the APC.”

He thanked the delegates for the confidence reposed in him and other executive members promising to provide a leadership that will further help deepen democratic ideals of fairness, justice and good governance.

Other executive members include  Alhaja Sakirat Arowolo, the Deputy Chairman, Rasaq Segun Sofowora as Secretary, as well as Mrs Yetunde Akindele, Women Leader, among others.

Speaking earlier, Gambo commended the resilience of  NNPP members in the state despite challenges, urging the newly elected and sworn-in executives to be determined to push NNPP stronger come 2027.

He disclosed that the intention of the party to take over the leadership of Nigeria across all levels comes 2027, lamenting that the present APC administration is not mass-oriented

Gambo said, “Our strong intention is to take over Nigeria in 2027.  We are determined, and we are working very hard, because the present government is running the affairs of the country to address the needs of the masses.

“Whereas NNPP is for the masses, it is free education for everybody; everybody must be educated, so we are really confident that we are going to succeed in 2027 by the special grace of God. That’s our dream and vision, and we call on all Nigerians to team up with us on this rescue mission.”

Opposition parties have always faulted the APC-led government, accusing it of foisting hardship on Nigerians, particularly with the subsidy removal, as well as the rising wave of insecurity across the country.

They have always threatened massive mobilisation ahead of 2027, with the sole aim of getting the party out of power.

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Customs hand over seized N40.7m petrol to NMDPRA

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The Comptroller-General of Customs, Adewale Adeniyi, on Friday handed over 1,650 jerrycans of Premium Motor Spirit, worth N40.7 million, to the Nigerian Midstream and Downstream Petroleum Regulatory Authority for further investigation.

Addressing journalists at the handover ceremony held at the Customs Training College in Ikeja, Adeniyi said the seized fuel was intercepted at various locations, including Badagry, Owode, Seme, and other axes within Lagos State.

Represented by the National Coordinator of Operation Whirlwind, Deputy Comptroller-General Abubakar Aliyu, Adeniyi said the contraband was intercepted over the past nine weeks.

“In the space of nine weeks, our operatives intensified surveillance and enforcement across critical border communities. A total of 1,650 jerrycans of 25 litres each were seized along notorious smuggling routes, including Adodo, Seme, Owode Apa, Ajilete, Idjaun, Ilaro, Badagry, Idiroko, and Imeko. The total duty-paid value of the PMS is N40.7 million,” Adeniyi said.

He added that three tankers used to transport the fuel were carrying 60,000, 45,000, and 49,000 litres respectively, totalling 154,000 litres of PMS.

According to Adeniyi, the interception was the result of intelligence-driven operations and the vigilance of Operation Whirlwind in safeguarding Nigeria’s economy and energy security.

He explained that the transportation and movement of petroleum products are governed by regulatory frameworks and standard operating procedures designed to prevent diversion, smuggling, hoarding, and economic sabotage.

“These items contravened the established Standard Operating Procedures of Operation Whirlwind,” Adeniyi said, emphasising that such violations undermine government policy, distort market stability, and deprive the nation of critical revenue.

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He warned that border corridors such as Owode, Seme, and Badagry remain sensitive economic arteries. “These routes have historically been exploited for illegal cross-border petroleum movement. Under our watch, there will be no safe haven for economic sabotage,” he said.

Adeniyi said the handover to NMDPRA reflects inter-agency collaboration. “While Customs enforces border control and anti-smuggling mandates, NMDPRA regulates distribution and ensures compliance with downstream laws. This collaboration ensures due process, transparency, and regulatory integrity,” he said.

Representing NMDPRA, Mrs. Grace Dauda said the agency ensures that petroleum products produced in Nigeria are consumed domestically. “It is unfortunate that some businessmen attempt to smuggle the product out of the country. The public must work together to stop economic sabotage,” she said.

Operation Whirlwind is a special tactical enforcement operation launched by the Nigeria Customs Service in 2024 to combat cross-border smuggling of petroleum products, particularly PMS, and other contraband that threaten Nigeria’s economic security. It was established in response to a surge in illegal fuel diversion across the country.

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Stocks drop, oil rises after Trump Iran threat

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Most Asia equities fell and oil prices rose on Friday after Donald Trump ratcheted up Middle East tensions by hinting at possible military strikes on Iran if it did not make a “meaningful deal” in nuclear talks.

The remarks fanned geopolitical concerns and cast a pall over a tentative rebound in markets following an AI-fuelled sell-off this month.

Traders are also looking ahead to the release of US data later in the day that will provide a fresh snapshot of the world’s top economy.

A slew of forecast-beating figures over the past few days have lifted optimism about the outlook but tempered expectations for more interest rate cuts.

The US president told the inaugural meeting of the “Board of Peace”, his initiative to secure stability in Gaza, that Tehran should make a deal.

“It’s proven to be over the years not easy to make a meaningful deal with Iran. We have to make a meaningful deal otherwise bad things happen,” he said, as he deployed warships, fighter jets and other military hardware to the region.

He warned that Washington “may have to take it a step further” without any agreement, adding: “You’re going to be finding out over the next probably 10 days.”

Israeli Prime Minister Benjamin Netanyahu earlier warned: “If the ayatollahs make a mistake and attack us, they will receive a response they cannot even imagine.”

The threats come days after the United States and Iran held a second round of Omani-mediated talks in Geneva as Washington looks to prevent the country from getting a nuclear bomb, which Tehran says it is not pursuing.

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The prospect of a conflict in the crude-rich Middle East has sent oil prices surging this week, and they extended the gains Friday to sit at their highest levels since June.

Equity traders were also spooked.

Hong Kong fell as it reopened from a three-day break, while Tokyo, Sydney, Wellington and Bangkok were also down. However, Seoul continued to rally to a fresh record thanks to more tech buying, with Singapore, Manila and Mumbai also up.

City Index market analyst Matt Simpson said a strike was not certain.

“At its core, this looks like pressure and leverage rather than a prelude to invasion,” he wrote.

“The US is pairing military readiness with stalled nuclear negotiations, signalling it has credible strike options if talks fail. That doesn’t automatically translate into boots on the ground or a regime-change campaign.

“While military assets dominate headlines, diplomacy is still in motion. The fact talks are continuing at all suggests both sides are still probing for a diplomatic off-ramp before tensions harden further.”

Shares in Jakarta slipped even after Trump and Indonesian President Prabowo Subianto reached a trade deal after months of wrangling.

The accord sets a 19 percent tariff on Indonesian goods entering the United States. The Southeast Asian country had been threatened with a potential 32 percent levy before the pact.

Jakarta also agreed to $33 billion in purchases of US energy commodities, agricultural products and aviation-related goods, including Boeing aircraft.

– Key figures at around 0700 GMT –

Tokyo – Nikkei 225: DOWN 1.1 percent at 56,825.70 (close)

Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,508.98

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Shanghai – Composite: Closed for holiday

West Texas Intermediate: UP 0.9 percent at $67.05 per barrel

Brent North Sea Crude: UP 0.9 percent at $72.27 per barrel

Euro/dollar: DOWN at $1.1756 from $1.1767 on Thursday

Pound/dollar: DOWN at $1.3448 from $1.3458

Euro/pound: DOWN at 87.42 pence from 87.43 pence

Dollar/yen: UP at 155.17 yen from 155.07 yen

New York – Dow: DOWN 0.5 percent at 49,395.16 (close)

London – FTSE 100: DOWN 0.6 percent at 10,627.04 (close)

AFP

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FG defers 70% of 2025 capital budget to 2026

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The Federal Government has said it will implement 30 per cent of the 2025 capital budget before the end of November, as part of measures to fast-track project execution and clear outstanding obligations.

It also stated that the remaining 70 per cent has been rolled over into the 2026 capital budget to ensure seamless implementation. The move follows a directive to Ministries, Departments, and Agencies to comply strictly with procurement rules in the execution and payment of capital projects under the extended 2025 budget cycle.

In a statement on Thursday by the Director of Press and Public Relations at the Office of the Accountant-General of the Federation, Bawa Mokwa, the government said MDAs had been instructed to align fully with the Public Procurement Act in implementing the 2025 and 2026 capital budgets.

The Minister of State for Finance, Mrs Doris Uzoka-Anite, gave the directive during a stakeholders’ meeting on the implementation of the extended 2025 Capital Budget held at the Federal Ministry of Finance in Abuja.

She stressed that capital disbursements must follow due process.

The statement read, “Mrs Uzoka-Anite emphasised that all capital payments must comply with the principles of the Procurement Act and that capital projects must be backed by cash before execution. She warned that no capital payment should be processed outside approved procurement procedures.”

She added that the country has sufficient funds to settle outstanding obligations and urged MDAs to update their documentation to enable quicker processing of payments.

The statement noted, “The Minister further stated that the nation has adequate funds to settle pending payments and urged MDAs to review and update their documentation to facilitate the timely processing of payments.”

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Providing further details, the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, disclosed that the Government Integrated Financial Management Information System had been fully restored.

Ogunjimi reiterated that warrants had already been issued to MDAs and announced that Treasury House would begin implementation of the 30 per cent component of the 2025 budget by the end of next week.

The statement read, “Dr Ogunjimi explained that 30 per cent of the 2025 Capital Budget will be implemented between now and 30 November 2026, while the remaining 70 per cent has been rolled over into the 2026 Capital Budget to ensure seamless implementation, in line with the directive of President Bola Tinubu.

“He reiterated that warrants have already been issued to MDAs and announced that Treasury House will commence implementation of the 30 per cent component of the 2025 Budget by the end of next week.”

The decision effectively means that a significant portion of last year’s capital allocations will now be executed within the current fiscal window, while the bulk has been carried forward into the 2026 capital framework to avoid disruption of ongoing projects.

Earlier in his welcome address, the Director of Funds, Mr Steve Ehikhamenor, cautioned MDAs against exceeding approved allocations. He urged them to avoid budget overruns and to adhere strictly to approved project items and their corresponding values.

He also advised agencies not to exceed the amounts specified in their warrants, to return any unutilised or excess funds to the Treasury, and to work closely with GIFMIS officials for technical support.

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The PUNCH earlier in December 2025 exclusively reported that the Federal Government ordered ministries, departments, and agencies to carry over 70 per cent of their 2025 capital budget into the 2026 fiscal year as the administration moved to prioritise the completion of existing projects and contain spending pressures in the face of weak revenues.

The directive was contained in the 2026 Abridged Budget Call Circular issued by the Federal Ministry of Budget and Economic Planning and circulated to ministers, service chiefs, heads of agencies, and other senior government officials in Abuja.

The circular stated that only 30 per cent of the 2025 capital budget would be released within the year, while the remaining 70 per cent would form the basis of the 2026 capital budget, replacing the traditional rollover approach.

However, the Federal Government did not release the 30 per cent earmarked for 2025, resulting in its deferral into 2026, as ministers raised concerns over the non-release of funds for capital projects.

The PUNCH earlier reported that ministers in charge of key infrastructure and service-delivery agencies are grappling with a severe funding squeeze, as figures showed that MDAs received less than N1tn for capital projects in the first seven months of 2025.

The data used for this report was the most up-to-date available from the Budget Office of the Federation, as the agency had yet to release comprehensive full-year implementation figures, despite the fiscal year being well advanced.

An analysis of data from the Budget Office of the Federation’s Medium-Term Expenditure Framework and Fiscal Strategy Paper (2026–2028) showed that while N18.53tn was appropriated for capital expenditure for “MDAs and others” in 2025, the January–July pro rata benchmark stood at N10.81tn.

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However, actual capital releases to MDAs and related entities during the period amounted to just N834.80bn. That left a pro rata shortfall of about N9.98tn and a performance rate of only 7.72 per cent within the seven-month window.

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