Connect with us

Business

FG disburses N2.45tn to states for infrastructure, security

Published

on

The total amount disbursed to state governments and the Federal Capital Territory as financial support for infrastructure and security projects has increased to N2.45tn, official records from the Office of the Accountant-General of the Federation have revealed.

The amount disbursed between March 2024 and August 2025, which spanned over 17 months, was aimed at bolstering infrastructure development and strengthening security operations at the subnational level, as part of ongoing efforts to address widespread insecurity and bridge critical infrastructure gaps across the country.

These details were contained in internal documents from the OAGF, submitted at the December 2025 Federal Accounts Allocation Committee meeting, obtained on Friday.

The disbursements were made under a special intervention programme funded through non-oil revenue savings, as part of efforts to ease fiscal pressure on subnational governments and accelerate project execution at the grassroots.

The document, titled “Ledger of Savings on Intervention to States Infrastructure and Security,” showed that the payments were drawn from non-oil revenue savings, totalling N2.45tn within the 17 months. However, the document did not disclose how much each state received or whether the funds were disbursed separately from the monthly revenue allocation.

Details of the transactions indicated that the total receipts by the Federal Government over the period stood at N2.45tn, from which N2.45tn was paid out to state governments and the Federal Capital Territory, leaving zero balance as of 25 August 2025.

The document disclosed that total disbursements in 2024 amounted to N1.184tn, following four transactions in April (N259bn), May (N222bn), September (N370bn), and December (N333bn).

In 2025, payments rose further to N1.266tn, driven by six transfers spread across February (N216bn), April (N200bn), May (N250bn), June (N250bn), July (N250bn), and August (N100bn), underscoring a sustained pace of funding releases to beneficiaries over the two-year period.

Each payment is recorded as a “Payment for Intervention to States and FCT”, while corresponding inflows are titled “Transfer from Non-Oil Savings.”

Recall that on July 20, 2023, President Bola Tinubu approved the establishment of the Infrastructure Support Fund for the 36 states of the federation as part of measures to cushion the effects of the petrol subsidy removal on the people.

Providing more details on the establishment of the ISF for the 36 states, the then Special Adviser to the President, Special Duties, Communications and Strategy, Dele Alake, said, in a statement, “The new infrastructure fund will enable the states to intervene and invest in the critical areas of transportation, including farm to market road improvements; agriculture, encompassing livestock and ranching solutions; health, with a focus on basic healthcare; education, especially basic education; power and water resources, that will improve economic competitiveness, create jobs and deliver economic prosperity for Nigerians.

See also  Cooking gas prices ease as supply improves

“The committee also resolved to save a portion of the monthly distributable proceeds to minimise the impact of the increased revenues, occasioned by the subsidy removal and exchange rate unification, on money supply, as well as inflation and the exchange rate.”

He added, “These savings will complement the efforts of the ISF and other existing and planned fiscal measures, all aimed at ensuring that the subsidy removal translates into tangible improvements in the lives and living standards of Nigerians.”

A breakdown of the transactions shows that monthly receipts into the account and subsequent disbursements largely followed a predictable pattern, punctuated by periods of sharp spikes that reflected major intervention payments to states. In March 2024, the Federal Government received N300bn as a transfer from non-oil savings but did not make any disbursement to states in that month. This was followed in April 2024 by a payment of N259bn to states, even as only N100bn was received into the account during the period.

In May 2024, inflows remained modest, with N100bn saved into the account, while a larger sum of N222bn was paid out to sub-national governments. Savings of N100bn were again recorded in June 2024, with no corresponding disbursement reported. The trend continued in July and August 2024, when N100bn was received in each month, also without any payments to states.

A major shift occurred in September 2024, when N100bn was received into the account before a substantial N370bn was disbursed to states as intervention funding. Inflows of N100bn resumed in October 2024, followed by a higher savings of N200bn in November 2024, reflecting an effort to rebuild balances after the heavy September payout. By December 2024, another significant intervention was executed, with N333bn shared among benefiting states.

The pattern extended into 2025, beginning with savings of N100bn recorded in both January and February. This was followed by a disbursement of N216bn in February, paid to states as intervention support. In March and April 2025, the Federal Government again saved N100bn in each month, before transferring N200bn to states in April.

See also  Nigeria crude output misses OPEC quota eighth straight month

By May 2025, both savings and disbursements increased, with N250bn saved and an equal N250bn paid to states within the same month.

This one-to-one pattern continued through June and July, when states received N250bn in each month, matching the amounts saved. In August 2025, the trend moderated, with N100bn saved and the same amount subsequently shared among states, underscoring a closer alignment between inflows and intervention payments in the latter part of the period.

The regular monthly payments, typically N100bn, reflect a structured intervention strategy by the FG to provide fiscal support to subnational governments.

The payments, made monthly under the Federation Account framework, are aimed at supporting subnational governments to address pressing infrastructure gaps and security-related challenges. However, questions remain over how the funds are being utilised by states, especially given rising public concern about transparency in state-level spending.

Reacting in an earlier interview, the Executive Director of the Civil Society Legislative Advocacy Centre, Auwal Rafsanjani, criticised the Federal Government and state governors over what he described as the poor and unaccountable use of the N1.6tn disbursed for infrastructure and security between March 2024 and May 2025.

Rafsanjani, speaking in an interview with The PUNCH, said the funds, which were meant to address critical developmental challenges across the country, have not achieved their objective, considering the level of insecurity in the country.

He noted that with political actors already preoccupied with the 2027 elections, public spending has become more about power retention than people-oriented development.

He said, “First and foremost, we are in the era of financial recklessness. We are in the era of the collapse of responsible governance, accountability, and a collapse in poor projects and programmes that would impact the Nigerian people. So we are not surprised to see this level of lack of poor utilisation of these savings to ameliorate the suffering of Nigerians in terms of infrastructure, insecurity, healthcare, education, and basic amenities that are needed for the society or for the people to be productive and protected in Nigeria.

See also  2026 National Revenue Service half-year performance jumps by 50%

“Instead, we are seeing democratic scrambling of public resources without accountability for personal use. This is what we are experiencing, and unfortunately, this is what public officials and political officials are doing in the country. Right now, the only preoccupation is 2027, so wherever they can make money to invest in the 2027 election at the expense of development in Nigeria. This is why you can’t have any accountable public spending in Nigeria.”

“No, this can’t be judiciously spent, because if it were, we would have seen the positive impact on the nation. But because it is not judiciously spent, that’s why you can’t see any manifestation of benefits to the Nigerian people.

“The whole idea was probably not to allow the public to know these things, where questions would be asked. We need to make a serious issue, it would continue, and this is happening at all levels.”

It was recalls that, beyond these interventions, the Federal Government continues to fund major infrastructure projects, including the approval of a N1tn Metropolitan Rail Service for Kano State, designed to improve urban transportation, stimulate economic activities, and ease traffic congestion in the state capital.

The approval was disclosed by Kano State Governor, Abba Yusuf, while addressing members of the state contingent that participated in the 2025 National Qur’anic Recitation Competition held in Borno State.

“The Federal Government has approved the construction of a N1 trillion Metropolitan Rail Service for Kano State in a major move aimed at transforming urban transportation,” the statement read.

Yusuf said the rail project would provide a modern, efficient, and affordable mass transit system linking major districts within the Kano metropolis, thereby enhancing mobility and stimulating trade and investment.

“The Kano Metropolitan Rail Service will transform public transportation in the state by providing a reliable, safe, and affordable means of movement for residents across the metropolis,” the governor was quoted as saying.

Kano’s receipt of the large-scale infrastructure intervention comes against the backdrop of recent political realignments in the state, following the defection of key political actors to the ruling All Progressives Congress.

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Tinubu launches N52,500 minimum pension for 173,209 retirees

Published

on

President Bola Tinubu on Tuesday launched a N52,500 monthly minimum pension guarantee for 173,209 eligible retirees under the Contributory Pension Scheme, ending a 22-year delay in implementing the provision of the Pension Reform Act.

The President also inaugurated the Pension Industry Healthcare Plan for Retirees, known as PenCare, to provide free essential healthcare services to low-income pensioners.

Tinubu, who was represented by Senate President Godswill Akpabio, announced the initiatives during the Presidential Pension Security Initiatives ceremony at the State House Banquet Hall, Abuja.

Declaring the minimum pension guarantee operational, he said, “By the authority vested in me as President, Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, I hereby declare the Minimum Pension Guarantee Scheme commenced.”

The President explained that the guarantee, first provided for under the Pension Reform Act of 2004 and retained in the 2014 legislation, had remained unimplemented despite successive administrations.

“From this day, there is a floor beneath the Nigerian retiree. No one who contributed under the Contributory Pension Scheme will ever be allowed to fall below,” he said.

Tinubu urged future administrations to maintain the guarantee, declaring, “Raise it. But never remove the floor.”

On healthcare, he said the PenCare initiative would protect vulnerable retirees from medical expenses capable of exhausting their pension savings.

“PenCare gives our low-income retirees access to essential health care without charge,” he said, adding that beneficiaries would begin receiving healthcare access cards in the coming months.

The President also disclosed that his administration had issued a N758bn bond to address longstanding pension arrears and approved a N32,000 monthly consequential adjustment for affected federal pensioners.

He said states had spent over N1tn settling pension obligations, attributing their improved financial capacity partly to subsidy removal.

See also  Investors demand CBN refund of N100.35m after licence issuing suspension

Citing a World Bank report, Tinubu said states’ revenues increased by about 93 per cent in real terms between 2023 and 2025, while the share of their budgets devoted to capital projects rose from 46 to 61 per cent.

He also disclosed that government-backed credit initiatives had unlocked over N64bn for 174,000 borrowers, while more than 350,000 Nigerians had accessed approximately N53bn in consumer credit.

In her opening remarks, the Director-General of the National Pension Commission, Omolola Oloworaran, announced that the guaranteed minimum pension had been fixed at N52,500 monthly.

“The minimum pensions in the Federal Republic of Nigeria is 52,500 naira every month,” she said.

According to her, 173,209 retirees qualify for the guarantee, comprising 34 per cent from federal service, 12 per cent from state employment and 54 per cent from the private sector.

She explained that the amount had been actuarially validated and would be subject to periodic review.

“The figure was not plucked from the air. It has been validated by an actuary, and it is subject to review,” Oloworaran noted.

She disclosed that more than N400bn was available in the Pension Protection Fund to finance the guarantee, while more than 65 per cent of private-sector retirees currently earned below the new threshold.

The PenCom boss also revealed that states inherited over N2tn in pension liabilities, of which N1.07tn had been settled.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

WHATSAPP CHANNEL

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

NERC okays N30bn to meter Band A customers, read details

Published

on

The Nigerian Electricity Regulatory Commission (NERC) has approved N30bn for the third phase of the Meter Acquisition Fund to accelerate the installation of electricity meters for unmetered Band A customers and expand coverage among Band B consumers.

The regulator has also directed electricity distribution companies to complete all meter installations under the programme by 31 May, 2027, warning that customers must not be charged for meters provided through the initiative.

The commission disclosed this in Order No. NERC/2026/121 on the operationalisation of Tranche C of the Meter Acquisition Fund, effective 2 November, 2026. It announced the order in a post on its official X handle on Tuesday.

The post read, “The Nigerian Electricity Regulatory Commission (NERC or the Commission) hereby informs electricity consumers and stakeholders of the issuance of Order No. NERC/2026/121 on the Operationalisation of Tranche C of the Meter Acquisition Fund, effective 2 November 2026.

“The Commission has approved N30 billion for Tranche C, to be allocated among the eleven Distribution Companies (DisCos) in proportion to their respective contributions to the Fund. The funding is intended to meter all remaining unmetered Band A customers and accelerate the metering of Band B customers, with equitable distribution across states within the respective DisCo franchise areas.”

The latest funding is part of the Federal Government’s Presidential Metering Initiative, which seeks to close the country’s persistent electricity metering gap, protect consumers from estimated billing and improve accountability in the power distribution system.

According to the order, the approved N30bn will be shared among the 11 electricity distribution companies in proportion to their respective contributions to the Meter Acquisition Fund.

See also  Musk spends $276m backing Republicans in midterms — Report reveals

The funds will be used to provide meters for all remaining unmetered Band A customers while accelerating installations for Band B consumers. The commission also directed that the distribution should be equitable across states within each DisCo’s franchise area.

Under the arrangement, the distribution companies are required to conduct transparent procurement exercises involving eligible Local Meter Manufacturers and Assemblers and Meter Asset Providers with verified meter stocks.

NERC said it had prescribed maximum procurement prices based on the median national bid prices submitted by Meter Asset Providers during the September 2026 bidding cycle.

The commission also introduced a two-stage payment arrangement to strengthen accountability and ensure that providers deliver the meters before receiving full payment.

Under the arrangement, 70 per cent of the contract payment will be released after verification of delivered meter stocks, while the remaining 30 per cent will be paid after the complete installation of the meters has been confirmed.

The regulator reiterated that all meters supplied and installed under the fund must be provided free of charge to electricity consumers, warning against attempts by distribution companies or their agents to sell them.

It further directed that every meter supplied under the programme must prominently display the name of the relevant distribution company, the applicable tranche of the Meter Acquisition Fund and the inscription, “NOT FOR SALE”.

“The Commission reiterates that all meters supplied and installed under the MAF programme shall be provided FREE OF CHARGE to customers. Every meter must prominently display the relevant DisCo’s name, the applicable MAF tranche and the inscription “NOT FOR SALE.

See also  Iran-US conflict may raise Nigeria’s fuel prices

“Where a DisCo initiates the relocation of an existing customer’s connection point for revenue protection purposes, the cost shall be borne by the DisCo. The Order also provides sanctions where DisCo defaults impede meter installation,” the report added.

The order also addressed situations where distribution companies relocate customers’ existing connection points for revenue protection purposes.

According to NERC, where a DisCo initiates such relocation, it must bear the associated cost rather than transfer the financial burden to the affected customer.

The commission also provided for sanctions where defaults by distribution companies obstruct or delay meter installations, reinforcing the responsibility of operators to ensure that the programme is implemented within the stipulated period.

To prevent diversion of funds and ensure proper implementation, the regulator prescribed monitoring, reporting and evaluation requirements for the Fund Manager, distribution companies and participating meter providers.

It also directed that all supply and installation contracts executed under Tranche C must be submitted to the commission.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

WHATSAPP CHANNEL

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

NDIC laments debtors’ refusal to repay failed bank loans

Published

on

The Nigeria Deposit Insurance Corporation has expressed concern over the refusal of some debtors of failed banks to repay outstanding loans, accusing them of deliberately frustrating recovery efforts through asset concealment, legal delays and intimidation.

The corporation warned that such practices undermine efforts to recover funds belonging to depositors and delay the payment of outstanding claims to customers of liquidated financial institutions.

The Director of the Asset Management Department of the NDIC, Ogungbemi Theophilus, raised the concerns on Monday during the Stakeholders’ Seminar and Public Relations Workshop held at Exclusive Serene Hotels and Suites, Wuye, Abuja.

Speaking on the challenges confronting the corporation in recovering assets of failed banks, Theophilus said, “Some debtors of failed banks believe that because a bank’s licence is revoked, he is not obliged to fulfil his responsibilities anymore. They hide assets. They frustrate service. Employ delay tactics in court. Sometimes, they try to intimidate. But we have to always do our job and professionally too.”

He explained that recovering outstanding loans remained one of the most difficult aspects of bank liquidation, particularly when borrowers failed to honour their obligations before the affected institutions lost their operating licences.

“A loan that was not repaid when the bank was alive does not become easier to recover when the bank is dead,” he noted.

The director noted that delays in recovering loans and disposing of physical assets could significantly reduce their value, ultimately affecting the amount available for distribution to depositors.

According to him, buildings left unoccupied for extended periods depreciate, while equipment deteriorates and outstanding loans become increasingly difficult to recover.

See also  2026 National Revenue Service half-year performance jumps by 50%

“Every delay slows payment to depositors,” he warned.

Theophilus explained that the Asset Management Department was responsible for managing the loans, physical assets and investments of closed deposit money banks, primary mortgage banks and microfinance banks.

He said the department was mandated to recover outstanding loans, dispose of properties and investments, and convert recovered assets into cash to settle uninsured depositors.

He stressed that the corporation’s ability to compensate depositors whose balances exceeded the insured limits depended largely on the success of these recovery efforts.

The director explained that depositors of deposit money banks, non-interest banks and mobile money operators were insured up to N5m per depositor per bank, while those of microfinance banks, primary mortgage banks and payment service banks were covered up to N2m.

He said the existing coverage fully protected approximately 99 per cent of depositors, but customers with balances above the insured limits depended on liquidation dividends for the recovery of their outstanding funds.

“For them, the insured payment is only the first instalment. The balance — the uninsured deposit — can only be paid as liquidation dividend, from the proceeds of the assets we are able to realise and the loans we are able to recover,” he explained.

Theophilus disclosed that the corporation conducted public auctions through competitive sealed bidding on November 3 and 4, 2026, to dispose of physical assets belonging to three banks in liquidation.

He identified the institutions as Union Homes Savings and Loans, Heritage Bank, and Resort Savings and Loans, adding that the auctions took place in Lagos, Taraba and Adamawa states.

See also  Musk spends $276m backing Republicans in midterms — Report reveals

He said the exercises were coordinated by the Asset Management Department and executed by appointed auctioneers.

The director also cautioned against excessive recovery costs, stressing that expenses incurred in recovering debts must not outweigh the value of recovered assets.

“If it costs us N10m to recover N8m, the depositor has lost. We must be disciplined about costs, timelines and reporting,” he said.

He further warned professionals engaged in asset recovery against insider dealing, deliberate undervaluation, collusion with buyers and diversion of proceeds.

“The Corporation has zero tolerance for insider dealing, under-valuation, collusion with buyers, diversion of proceeds, or any conduct that short-changes depositors,” he declared.

Theophilus announced that the NDIC was developing a comprehensive Asset Management Policy to strengthen asset identification, documentation, valuation, disposal procedures and accountability in recoveries.

He said the corporation would also deepen collaboration with auctioneers, valuers, sales agents, surveyors and other professionals to improve loan recoveries and accelerate the settlement of depositors’ claims.

The director explained that the Abuja workshop formed part of three stakeholder seminars scheduled for Abuja, Enugu and Lagos, aimed at identifying operational challenges, strengthening professional relationships and improving asset recovery outcomes.

He maintained that successful collaboration would ultimately benefit depositors awaiting payment following the collapse of their banks.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

WHATSAPP CHANNEL

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Trending