State governors have rejected deductions from allocations due to the states from the Federation Account in the September 2026 revenue-sharing cycle, arguing that the deductions would further squeeze their finances, The PUNCH reports.

The states also called for the suspension of deductions linked to the Paris Club refund to local government councils, alleging that the payments were resumed without prior communication and reconciliation with affected states.

Their opposition comes after the three tiers of government shared N668.4bn less of August 2026 revenue distributed in September, heightening concerns over the impact of lower revenue receipts on states’ ability to meet their financial obligations.

The governors also demanded the redistribution of the proposed N240bn savings, insisting that the funds should be shared among the federal, state and local governments rather than deducted or retained under the proposed arrangement.

The complaints were raised by several state Accountants-General during the technical session of the Federation Account Allocation Committee meeting, according to a report by the committee’s technical sub-committee, dated 14 October, 2026, obtained by The PUNCH on Thursday.

The meeting, held at the Federal Ministry of Finance headquarters in Abuja, considered revenue accounts for August and the amounts available for distribution in September.

The report showed that the total amount recommended for distribution to the federal, state and local governments stood at N2.339tn, compared with N3.007tn shared in the previous month, representing a decline of N668.4bn.

The statutory revenue available for distribution dropped more sharply, falling from N2.283tn in the previous month to N1.566tn in August, a decrease of N717.08bn.

However, revenue from Value Added Tax increased to N773.23bn from N724.46bn, providing some relief amid the decline in statutory revenue.

The Director of the Federation Account Department, Okolie Rita, who presented the accounts, told the committee that the statutory revenue available for distribution was calculated after deducting N85.71bn and N36.83bn as four per cent costs of collection for the Nigeria Revenue Service and the Nigerian Upstream Petroleum Regulatory Commission, respectively.

The revenue decline triggered calls from state representatives for the Federal Government to release additional funds and reconsider deductions that they said were putting pressure on state finances.

The Accountant-General of Akwa Ibom State, Andrew Essien, observed that August revenue had dropped considerably compared with July and appealed for the proposed N240bn savings to be returned to the distributable pool.

The Accountant-General of Jigawa State, Abdullahi Shehu, recalled an earlier proposal to augment the previous month’s revenue with N250bn, which he said had not been implemented. He urged the committee to combine the promised N250bn with the proposed N240bn savings and redistribute the funds to the three tiers of government.

The Accountant-General of Bayelsa State, Tokoni Ifidi, supported the demands and raised concerns about deductions for the Paris Club refund to local government councils.

She said the deductions were introduced without prior communication to the states, despite what she described as an earlier commitment in 2025 concerning the deductions, which began in February that year and were stopped by a court order in April 2026.

The document read, “AG Akwa Ibom observed a considerable drop in the revenue of August, 2026 compared to July, 2026 and appealed for the proposed savings of N240bn to, instead, be redistributed. AG Jigawa recalled that there was a proposal to augment the previous month’s revenue with the sum of N250bn but it had not been done. He suggested that the N250bn promised in the previous month should be added to the proposed savings of N240bn and be redistributed.”

The Director of the Federation Account Department explained that the Paris Club deductions were not new, noting that they had previously been suspended following a court order.

The Bayelsa representative, however, maintained that the deductions should continue to be suspended pending reconciliation. She said the Economic and Financial Crimes Commission had held reconciliation sessions with local government councils and was awaiting feedback from the Office of the Accountant-General of the Federation on the commencement and continuation of the deductions.

The Accountant-General of Niger State, Saidu Abdullahi, criticised the handling of the deductions, arguing that the ministry had made a mistake from the beginning by distributing funds without adequate planning and proper communication.

He insisted that previous agreements should be honoured, particularly the proposed N250bn augmentation, while supporting calls for the redistribution of the N240bn savings.

The Accountant-General of Cross River State, Glory Effiong, also backed the demand for the savings to be redistributed, observing that deductions had consumed a substantial portion of the earnings of many states.

She said she had not been invited to any reconciliation meeting on the Paris Club debt since joining the committee and urged the Office of the Accountant-General of the Federation to improve its communication with state representatives.

The Accountant-General of Jigawa State further questioned the amount deducted under security-related expenditure, describing the quantum of deductions as alarming and calling for a review.

The Accountant-General of Nasarawa State, Musa Mohammed, stressed that states should be properly informed and invited to reconciliation meetings before decisions affecting their allocations were implemented.

Source: punchng.com

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Nigeria’s annual average inflation is projected to decline significantly to 15.6 per cent in 2026 before easing further to 14.7 per cent in 2027, according to the latest economic assessment by the International Monetary Fund.

This expected slowdown marks a noticeable deceleration from the elevated 23.0 per cent average inflation recorded in 2025.

Economic analysts at Coronation Research highlight that key macro stabilisation measures are actively contributing to this cooling trend. Specifically, increased exchange rate stability alongside growing domestic refining capacity is playing a central role in moderating persistent domestic price pressures across supply chains.

Despite this encouraging downward trajectory, persistent risks could temper the speed of relief for businesses and consumers.

In its evaluation of the macroeconomic environment, Coronation Research noted, “Exchange rate stability and increased domestic refining capacity could help moderate price pressures. However, higher energy and fertiliser costs, alongside election-related spending, may slow the pace of disinflation”.

High input expenses and local food insecurity continue to present direct risks to overall household welfare, threatening to constrain how effectively macro disinflation translates into immediate improvements in daily living standards.

Looking ahead, the IMF projects Nigeria’s gross domestic product to grow by 4.2 per cent in 2026 and 4.3 per cent in 2027, driven by continued foreign exchange reforms and strong performance in the non-oil sector.

Analysts from Coronation Asset Management broadly backed these projections, pointing out that their internal estimate for 2027 annual average inflation sits very close to the multilateral lender’s forecast at 14.56 per cent. “While structural headwinds remain, the ongoing economic policy reforms and expanded refining operations provide a strong foundation for steady, long-term price moderation”, an analyst said.

In recent years, Nigeria has grappled with elevated price pressures, fuelled by macroeconomic imbalances, foreign exchange volatility, and external supply chain disruptions. Following a period of aggressive policy interventions, including foreign exchange market adjustments and structural economic reforms aimed at stimulating non-oil production, the focus has shifted toward restoring price stability and stabilising the local currency.

The latest October 2026 World Economic Outlook update by the International Monetary Fund and companion analyses from Coronation Research offer an updated projection on the country’s macroeconomic path.

After headline annual-average inflation climbed to an estimated 23.0 per cent in 2025, persistent tight monetary policy, combined with a gradually stabilising foreign exchange regime, has begun easing price pressures across major consumer categories.

“Increased local refining capacity has further aimed to reduce energy import dependency and temper transportation fuel costs. However, lingering supply risks, higher agricultural input costs, and fiscal pressures continue to pose potential risks to the broader disinflation trend”, the report added.

Source: punchng.com

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The Federal Government says it has settled more than N100bn in longstanding gas debts since January 2026 as part of efforts to strengthen the gas-to-power value chain.

The Special Adviser to the President on Oil and Gas, Mrs Olu Verheijen, disclosed this on Wednesday in her keynote address at the Africa Interviews Sustainability Forum 2026 in Lagos.

She said the settlement was carried out under the administration’s Presidential Power Sector Financial Reforms Programme.

The presidential adviser also highlighted measures introduced since 2023 to encourage the adoption of liquefied petroleum gas for household cooking.

She said the government had instituted import duty waivers and zero-rated value-added tax measures for LPG and gas cylinders to promote cleaner cooking alternatives and reduce dependence on firewood.

“A gas-rich nation cannot be comfortable while families remain stuck in the age of firewood,” she said.

Verheijen attributed progress in the gas sector to reforms under President Bola Tinubu’s administration aimed at removing investment barriers and unlocking Nigeria’s gas resources for industrialisation, electricity generation and economic growth.

She disclosed that Nigeria had recorded four final investment decisions in gas projects in less than two years, while average daily gas production had risen from about seven billion cubic feet to eight billion cubic feet.

Speaking on Nigeria’s gas potential, Verheijen said the country held more than 200 trillion cubic feet of proven reserves but stressed that resource abundance alone did not guarantee prosperity.

“A country can sit on enormous natural wealth and fail to turn it into energy to power industry, industries that create jobs and jobs that help us grow incomes.

“What turns resources into prosperity is investment, consistent investment that responds to predictable incentives and a stable environment,“ she noted.

The presidential aide maintained that Tinubu had given his administration a clear mandate to address the factors preventing investment from matching Nigeria’s economic potential.

“When President Bola Tinubu assumed office in 2023, he gave us a very clear mandate: understand why investment has not moved at the pace of Nigeria’s potential and fix it,” she said.

According to her, gas remained central to the administration’s reform agenda because of its importance to electricity generation, manufacturing, transportation, fertiliser production and cleaner cooking.

“Gas has been a priority within that reform agenda because Nigeria is, as you all know, even more gas-rich than it is oil-rich, and the gas is arguably the most important physical resource for industrialisation,” she added.

Verheijen disclosed that Nigeria had recorded four gas final investment decisions in less than two years, including the Ima project in September 2026. Indigenous producers, she added, were playing an increasingly significant role in the country’s gas supply.

Addressing Africa’s energy transition, Verheijen said the continent must prioritise energy security, industrial development and job creation while pursuing environmental sustainability.

“For Africa, the energy transition must mean transformation, molecules converted into megawatts, fertilizer, petrochemicals, cleaner mobility, manufacturing, jobs and exports,” she said.

She argued that African countries must retain the freedom to determine the pace of their energy transitions in line with their development priorities and economic circumstances.

“The energy transition must also mean agency. Africa is right to decide for itself how fast it decarbonises, rather than having those choices made for us by others. It is about affirming our right to be the authors of our own energy transition,” she said.

Verheijen also emphasised the need to measure and mitigate methane emissions and ensure that host communities benefited meaningfully from gas development.