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

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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.

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“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.

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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.

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“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.

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Taiwo Oyedele rules out fuel tax, calls report fake news

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The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has ruled out plans to introduce a fuel tax, describing reports suggesting otherwise as “fake news”.

Oyedele said the Federal Government had no plan to impose the levy, accusing some online reports of twisting his remarks during an interview with ARISE News.

In a post on X on Tuesday, the minister said, “In my interview with ARISE News, I was clear: a fuel tax is not on the table.”

He added, “Having removed the fuel subsidy, it would be insensitive for government to impose a fuel tax at this time.”

Oyedele’s clarification followed reports suggesting that the government intended to introduce a fuel tax once economic conditions improved and Nigerians’ incomes could accommodate the additional burden.

Dismissing the reports, he said, “Some online reports have since twisted this message into a claim that the government plans to introduce fuel taxes. That is FAKE NEWS.”

He urged Nigerians to disregard what he described as misleading headlines and watch his remarks on the issue.

During the interview, conducted on the sidelines of the 2026 annual meetings of the International Monetary Fund and the World Bank in Bangkok, Thailand, Oyedele explained that imposing a fuel tax while petrol was subsidised would have been counterproductive because the government would effectively be paying the tax itself.

He also argued that the priority should be to grow incomes faster than prices rise, rather than focus on suppressing prices.

The minister maintained that introducing a fuel tax under the prevailing economic conditions would place an additional burden on Nigerians still grappling with the effects of subsidy removal.

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Source: punchng.com

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Tinubu reveal no regrets on subsidy, won’t return to Egypt

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President Bola Tinubu has said he has no regrets over the removal of the fuel subsidy, vowing that Nigeria will never go back to it as he likened any return to asking the biblical Moses to go back to Egypt.

Tinubu spoke on Monday evening at the forum tagged ‘Together till 2027: An Evening with Original City Boy’, organised by the City Boy Movement in conjunction with the Relax-Tinubu-Is-Fixing-Nigeria movement, both of which are geared towards his reelection at the 2027 polls.

Recalling the start of his administration, the President said he scrapped the subsidy on his first day in office.

“I came, and I removed the subsidy the first day,” he said, adding that Nigeria was heading for bankruptcy, with “nothing left to pay subsidy.”

The President threw jabs at the African Democratic Congress presidential candidate, Atiku Abubakar, who promised a return to subsidy.

Citing what he called his studies of scripture in the Bible and the Holy Quran, Tinubu recalled how the Red Sea parted when Moses left Egypt.

He likened the end of the subsidy regime to the exodus of the ancient Israelites from Egypt, saying, “You cannot ask Moses to go back to Egypt.”

Continuing, he said, “I could listen to my political opponents promising a return to subsidy. Most of all, sometimes I remember my scripture studies, both the Bible and the Holy Quran. When Moses left Egypt, they faced the challenge, and the Red Sea parted and gave way.

“You cannot ask Moses to go back to Egypt. We wake up with ideas, original thoughts, and deep thinking to move this country forward. With your energy, your support, Nigeria will never go back to Egypt. No regrets.

“Before I left home, I saw one of the greatest Chinese economic news growing by 4.6 per cent or thereabouts. We are on the right trajectory. We are in good company. The economy is growing steadily. You will have a future, a future to believe in.”

The President added, “Nigeria must win this election before any candidate does. You are not campaigning for me. You are campaigning for your own future, and that future is renewed hope. There’s nothing that will push us back.”

Tinubu said the past three years had not been easy, adding that his administration “took hard decisions.”

He described the condition in which he took over, stating that, “We owed money to airlines. They were almost cutting their flights to Nigeria. Our foreign reserve was nothing. We printed currencies as if there were no tomorrow.”

He said that rather than dwell on the flaws of the past, he chose to assume the responsibility and liability of his predecessor.

“We understood that a nation cannot borrow its way to greatness,” Tinubu said, adding that many people had predicted that young Nigerians would turn their backs on the reforms.

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“They were wrong. You are here,” he said.

Turning to the January 16, 2027, presidential election, the President told the youths to take the message to their campuses, markets and villages.

“Make sure every young person you know has a PVC and use it. Tell them what we have done, and tell them what we will do. Campaign with your ideas.

“You are not campaigning for me. You are campaigning for your own future, and that future is Renewed Hope,” he stated.

On the Students Loan Act, which he signed in 2023, he said he also had no regrets, adding, “Today, more than a million students have been supported through NELFUND.”

Tinubu announced the end of the petrol subsidy when he took office on May 29, 2023.

The pump price rose from about N180 per litre to about N620 after the announcement, and to about N1,200 roughly a year later.

Atiku, on August 20, in an English rendering of a Hausa-language interview, said: “If elected, I will bring back the oil subsidy.”

He, however, proposed a capped, audited production subsidy tied to domestic refining, saying his proposal was not to resurrect the old subsidy regime.

The Presidency called the proposal a return to a “wasteful, corruption-ridden and financially burdensome” system.

At the event, Tinubu assured the City Boy Movement, especially the youth who had stood with him, that they would not be left behind.

“The future of this country does not belong to me, and it does not belong to my generation. It belongs to you.

“I am very proud, once again, that when I signed the Student Loan Act, I had no regrets.

“Today, more than a million students have been supported through NELFUND,” Tinubu stated.

On his son, Seyi, he said: “He is running after his father. Your young colleagues would have seen that you are investing your time effectively. We are with you. Thank you. You did it humbly.

“You did not ask for a title or an office. You went to the young people, your age mates, your group. You listened to them and organised them.

“I am proud of all of you. But I will tell you what every father tells a son: you have only started. Do more, not less. Serve harder. Set an example that your own children, my grandchildren, will be proud to follow.”

Speaking earlier, Vice President Kashim Shettima said Nigeria’s economy would have collapsed had President Bola Tinubu not taken what he called far-reaching decisions.

He said, but for the tough decisions, critics would by now be writing epistles on a collapsed economy from the comfort of their homes in Dubai, United Arab Emirates, and New York, United States.

The Vice President credited the President’s decisions for the economy’s recovery.

He said, “The President took those far-reaching decisions. He had the courage of conviction and the knowledge to take those far-reaching decisions that repositioned the Nigerian economy, so that now, the economy grew by 4.43 per cent in the last quarter.

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“Most importantly, our foreign reserves are now hovering at the level of $60bn.

“Remember how far we have come. It’s only those who have been in the deepest valley that will appreciate how magnificent it is to be on a mountain top.”

To the critics of the administration, Shettima said, “The same people that are crying wolf, if the President had not taken those far-reaching decisions, Walahi, I am not talking to you as a politician. I am talking to you as a Nigerian; our economy would have collapsed.

“These people, by now, would be writing epistles on a collapsed economy from the comfort of their homes in Dubai, in New York, or in marriage with their young Moroccan wives. I have not mentioned anybody’s name.”

He admitted that Nigerians had endured hardship, but said it could have been worse.

“Your Excellency, distinguished ladies and gentlemen, the President has to be commended, not demonised. Yes, Nigerians have gone through some tough times, but it could have been worse.

“Be reassured that in the coming weeks, the President will come up with robust responses to agricultural challenges, and prices of foodstuffs will certainly come down,” he stated.

The Vice President said efforts were being made to reposition the economy, citing the Nigerian Education Loan Fund and investments in infrastructure.

He then asked the youth to carry the message to the streets.

“I urge the youth of Nigeria. I beseech thee. I implore you to go out to the streets and tell the truth to other Nigerians,” he stated.

At the inauguration of the All Progressives Congress Presidential Campaign Council on October 14, Shettima mocked the former Vice President, Atiku Abubakar, and the former Anambra State governor, Peter Obi, over their economic proposals.

Also speaking at the event on Monday, the Deputy Senate President, Barau Jibrin, commended the City Boy Movement, describing it as a “special purpose political vehicle” that was not only human-driven but also technology- and AI-driven.

He said he believed no other political organisation in the country was doing what the group was doing, and urged others to take a cue from it.

Jibrin asked the movement to build Tinubu’s ideology and philosophy into its AI content, citing his “spirit of philanthropy, the spirit of resilience, the spirit of perseverance, and of course patriotism.”

The Deputy Senate President also urged the group to load its AI platform with questions and answers to counter some of the candidates in the election whom he accused of “churning out things that they cannot achieve” in “false populism”.

He said, “We know their track records; we know their scorecards when they held offices before. So that people will not fall for their lies, so that people will not fall for the fallacy they are turning out every day.”

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He further asked that the content explain the global rise in the cost of living, which he blamed on armed conflicts. He said the President was working very hard to deal with the situation.

The Speaker of the House of Representatives, Tajudeen Abbas, announced that he would publish an audit of what Tinubu had done for his Zaria constituency in Kaduna State, and called on all political officeholders serving under the President to do likewise.

He said he would hold a media briefing within 14 days, where he would also present a scorecard of the House’s bills, reforms and oversight work done in partnership with the administration.

“It will not be a celebration; it will be an audit. Every intervention will carry a location, a value and a status.

“And where something remains undone, I will say so, because an account that tries to hide its gap is merely an advertisement,” he said.

Abbas said many people who carried the President’s portrait on their posters had “never carried your record to their people.”

He urged officeholders, elected and appointed alike, to render an account of what their share of the President’s mandate had produced, and proposed a common format and a 90-day timeframe.

“The question before us will not be, whose side are you on. It will be, what did you do?” he stated.

Addressing the City Boy Movement, the Speaker asked it to verify these accounts by photographing projects and holding town halls where officeholders face their constituents.

“A leader learns nothing from applause. Become the feedback loop this administration requires, carrying the President’s record down to the people and the people’s verdicts back to the President,” said Abbas.

On his part, the Director-General of the City Boy Movement, Francis Shoga, told the President that Nigerian youths were ready to work and ready to serve.

“We are not a generation waiting helplessly on the sidelines. We are not a generation without direction, courage or purpose.

“We are a generation prepared to rise above every limitation, organise with discipline, confront challenges with courage and build the Nigeria of our dreams.

“Your Excellency, we are your foot soldiers, ambassadors of hope, defenders of our national unity and committed partners in the great task ahead of national transformation. Wherever young Nigerians are found, we will carry the message of Renewed Hope,” he stated.

Shoga said the movement drew its inspiration from the “courage, persistence, patriotism, visionary leadership and bold decision-making” that had defined Tinubu’s political journey and public service.

“Our mission,” he affirmed, “is to inform, engage, inspire and empower Nigerian youths so that they understand the direction of government, recognise available opportunities and participate confidently and responsibly in national development.”

Source: punchng.com

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FG showcases $125m housing PPP model to African nations

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The Federal Government has attracted interest from African countries seeking to replicate Nigeria’s housing delivery model, which leverages private investment, concessional loans and guaranteed buyers to deliver 100,000 homes without direct public financing of construction.

The Renewed Hope Housing Public-Private Partnership model was presented by the Director-General of the Infrastructure Concession Regulatory Commission, Dr Jobson Ewalefoh, at the Second Forum for Public-Private Partnership Units in Africa in Addis Ababa, Ethiopia.

A statement issued by the Acting Head of Media and Publicity, Ifeanyi Nwoko, on Monday said delegates from 36 countries attended the forum, which focused on making public-private partnerships work in social sectors, including housing, healthcare, education, sanitation and water.

Nigeria was among five countries selected to present projects at the forum’s project clinic, alongside Malawi, Kenya, Djibouti and Côte d’Ivoire.

The statement read, “The Federal Government has presented its Renewed Hope Housing Public-Private Partnership model at a continental forum in Addis Ababa, Ethiopia, where African countries showed strong interest in replicating it in their own housing programmes.”

Speaking for the Nigerian delegation, Ewalefoh said the Renewed Hope Cities programme would deliver 100,000 housing units across selected Nigerian cities through a joint venture concession with private sector partners.

“The beauty of this PPP structure is that it is not the conventional PPP. In this case, the private party owns the land, has the design, is financing it and is doing the construction,” he said.

Under the model, the Federal Government’s role is to reduce investment risks and create the conditions necessary for private developers to deliver homes at affordable prices.

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“The PPP here is that the government agreed to de-risk the project,” Ewalefoh said.

He explained that the arrangement was designed to address the financing constraints facing housing developers in Nigeria, where commercial lending rates exceed 23 per cent, making it difficult to finance large-scale housing projects at market rates.

Rather than pay for construction directly, the government deployed several measures to attract private capital and improve affordability.

These include guaranteeing demand by identifying middle-income federal civil servants as prospective off-takers, providing access roads to the semi-urban project sites and securing concessional financing through public institutions.

According to the statement, about $19m in single-digit interest funding was unlocked through the Federal Mortgage Bank of Nigeria, while the Family Homes Fund provided a further $20m in concessionary loans.

Homebuyers are also expected to benefit from lower mortgage rates through an approximately `$112m MOFI Real Estate Investment Fund.

The government and the developer negotiated sale prices to keep the houses affordable, while a restriction limiting each buyer to one unit was introduced to discourage speculative purchases.

The measures, according to the ICRC chief, have reduced the effective cost of the project by about 30 per cent.

The structure is expected to mobilise approximately 39m in concessionary funding helping to unlock the project.

Ewalefoh told delegates that the model demonstrated how governments could expand housing supply without bearing the full cost of construction.

“The structure means the government is delivering homes without funding their construction. About $39 million in concessionary funding is helping to unlock a project whose construction cost now stands at about $125 million in private sector investment.

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“Government does not need to finance housing capital projects. It can crowd in private capital through policy, land availability and off-taker facilitation to create a replicable, scalable model for housing delivery,” he said.

The Nigerian model generated considerable interest during the question-and-answer session, with delegates seeking details on how its risk-sharing arrangements could be adapted to their respective countries.

Particular attention was given to the use of guaranteed off-takers to provide developers with a more predictable market and concessional financing to reduce the cost of delivering homes.

The forum was co-organised by the United Nations Economic Commission for Africa, the African Development Bank and the African Legal Support Facility under the theme, “Making Social Sector PPPs Work: From Policy Ambition to Effective Service Delivery”.

Held at Africa Hall, the United Nations Economic Commission for Africa, the two-day event brought together heads of PPP units, development finance institutions, private operators and transaction advisers to examine how private investment could support essential public services.

Discussions covered risk allocation, availability payments, viability gap funding, subnational PPP arrangements and contract management.

Unlike roads, ports and power plants, social infrastructure often generates insufficient revenue from user charges to recover investment costs. This makes affordability, fiscal sustainability and accountability central to the design of such partnerships.

The delegation also learnt from other countries’ projects, including their approaches to structuring transactions, allocating risks and implementing social sector partnerships.

The lessons, the statement said, would help inform Nigeria’s own pipeline of social infrastructure PPP projects.

The forum built on its inaugural edition in 2024, which brought together more than 30 African PPP units to discuss climate-resilient infrastructure.

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Source: punchng.com

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