Economy

Experts Urge States to Focus on Revenue Generation, Fiscal Transparency

Published

5 years ago

January 28, 2021

Eric

Public Finance experts, and business analysts have urged Nigerian States to focus more on internal revenue generation rather than waiting on the Federal Government to allocate funds to them.

This was part of the conclusion reached at the January 2021 CIAPS Roundtable tagged “Fiscal Transparency Accountability and Sustainability of Nigerian States”. The event hosted by the Lagos based international Graduate school CIAPS had participants from across the 36 States for the federation and from outside Nigeria discussed how Nigerian States were doing in terms of budgeting, revenue, debt management and fiscal responsibility.

Lead discussants at the CIAPS Roundtable included Ayo Teriba, CEO Economic Associates, Phillip Isakpa, Executive Director Businessnewscorp and Yemi Kolapo Editor In Chief at The Point Newspaper, the event was chaired by Anthony Kila.

Dr Ayo Teriba lead the conversation and opend by disagreeing with the general concept introduced by Prof Anthony Kila that many Nigerian States were not financially viable. According to Teriba every State in Nigeria has the potential for being viable, it is just about having the right leadership that can identify how to generate wealth. Teriba noted that too little is being done by States to generate investments and that no Nigerian State has a portal dedicated to attracting and guiding investors. He listed the Economy, Natural Capital, Human Capital and Governance as the four levers that the states need to push on to generate revenue.

In analysing the Fiscal Transparency Accountability and Sustainability of States, Mr Philip Isakpa noted that generally speaking too many individuals and businesses are focused on the Federal Government instead of looking at what states are doing. He called on all to be more vigilant of and involved with States Government. Philip Isakpa agreed with Anthony Kila that the tying grants to fiscal responsibility is a very good move that allows citizens and businesses to know and access which States were doing well and which ones were doing badly.

Ms Yemi Kolapo sounded a note of caution warning that while the performance conditioned grant was a good thing, we should be careful to make sure that States are actually doing good things and they are not just working the books to get funds.
Prof Kila invited the media and other observers to provide information of the States doing well and those doing badly in terms economic management and fiscal responsibility. “We need to know who are the performers and who are the bench warmers” noted Kila.

The federal government early January disbursed N123.34 billion performance-based grant to eligible states under the World Bank supported states fiscal transparency, accountability and sustainability (SFTAS) programme for results.

Mrs. Zainab Ahmed, minister of finance, budget and national planning, announced then that Sokoto state received the highest amount of N6.612 billion while Kano state got the lowest amount of N1.710 billion. Bayelsa, Imo, Rivers and Zamfara States got zero allocation due to their inability to meet the 2019 eligibility criteria which required States to publish online approved annual budgets and audited financial statements within a specific timeframe.

In separate interviews many of the experts that participated at the event urged all states to focus on Revenue Generation and Fiscal Transparency and to learn from Sokoto State that was able to lead the table of performing states. Rotimi Olarewaju a financial analyst noted that Sokoto state must be praised and used as an example for other States since it is showing others that wining the World Bank performance-based grant is possible.

Economy

CBN Increases ATM Daily Cash Withdrawal Limit to N100k

Published

2 days ago

December 3, 2025

Eric

The Central Bank of Nigeria (CBN) has increased cash withdrawal limits on all channels to N500,000 weekly for individuals and N5 million for corporates.

Announcing the policy revision in a circular on Tuesday, the regulator pegged automated teller machine (ATM) withdrawals at N100,000 daily, with a weekly cumulative withdrawal of N500,000.

The development is a major shift from tighter cash policy measures introduced under the previous administration.

In December 2022, the central bank, under Godwin Emefiele, its former governor, had directed deposit money banks and other financial institutions to limit over-the-counter cash withdrawals by individuals and corporate entities per week N100,000 and N500, 000, respectively.

The CBN’s latest policy reversal, also removed the cumulative deposit limit, saying the fee on excess deposit “shall no longer apply”.

According to the regulator, the policies form part of efforts to moderate the rising cost of cash management, address security concerns, and “reduce the potential for money laundering associated with the economy’s heavy reliance on cash”.

The bank said the policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

However, with the “effluxion of time”, the apex bank said the need has arisen to streamline the policies’ provisions to reflect present-day realities.

“Consequently, effective January 1, 2026, the following cash-related policies, which are for mandatory compliance by all deposit-taking financial institutions in Nigeria, shall apply nationwide,” the circular reads.

“The cumulative deposit limit is hereby removed and the fee for excess deposit shall no longer apply.

“The cumulative weekly withdrawal limit across all channels shall be N500,000 for individuals and N5 million for corporates. Cumulative weekly withdrawals above these limits shall attract excess withdrawal fees as indicated in ‘5’ below.

“The special authorisation for withdrawal of N5 million and N10 million once monthly by individuals and corporates, respectively, shall no longer apply.

“Automated Teller Machine (ATM) withdrawal limit shall be N100,000 daily (per customer), subject to a maximum of N500,000 weekly. As indicated in ‘2’ above, cash withdrawals from ATMs and point of sale devices are part of the weekly withdrawal limit indicated therein.

“Excess cash withdrawals (withdrawals above the levels indicated in ‘2’ above) shall attract fees of 3 percent and 5 percent to individual and corporate customers, respectively, on the excess amount withdrawn. The fee shall be shared 40 percent to the CBN and 60 percent to the bank or financial institution.”

According to the circular, signed by Rita Sike, CBN’s director of financial policy and regulation department, said all currency denominations “may be loaded in ATMs”.

However, the CBN retained the limit on over-the-counter encashment of third-party cheques at N100,000.

“Account holders are advised that any withdrawal under this section will form part of the cumulative weekly set in ‘2’ above”.

“Banks shall render the following monthly returns (in a format to be advised) to the respective supervisory departments (Banking Supervision Department, Other Financial Institutions Supervision Department and Payments System Supervision Department) as applicable:

“a . Returns on cash withdrawal transactions above the specified limit;

“b. Returns on Cash Deposits

“Deposit Money Banks (DMBs) shall create separate accounts to warehouse processing charges collected on cash withdrawals above the limits.

“The following accounts/entities are exempted from the application of sections 2 and 5 of this circular:

“i. Revenue generating accounts of federal, state, and local governments; and

ii. Accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks.

The CBN also said the exemption of embassies, diplomatic missions and aid-donor agencies from specific cash policies “shall no longer apply”.

Economy

CBN Retains Interest Rate at 27%

Published

1 week ago

November 25, 2025

Eric

The Monetary Policy Committee of the Central Bank of Nigeria has maintained the benchmark interest rate at 27 per cent, extending its pause on monetary tightening.

The CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the end of the committee’s 303rd meeting in Abuja.

Cardoso said, “The Committee decided by a majority vote to maintain the monetary policy stance,” indicating that members were not yet convinced that current economic conditions warranted another reduction.

The move follows the 50-basis-point cut implemented in September 2025, the only rate reduction since the tightening cycle began under the current CBN leadership.

It also marks the fourth consecutive hold this year.

The MPC had raised rates six times in 2024 amid surging inflation and currency pressures.

The Punch

Economy

FG Stops Proposed 15% Import Duty on Diesel, Petrol

Published

3 weeks ago

November 13, 2025

Eric

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), on Thursday, announced discontinuation of the planned 15 per cent duty on imported petroleum products.

NMDPRA’s Director, Public Affairs Department, George Ene-Ita, conveyed the development in a statement while warning the public to shun panic buying.

President Bola Tinubu, on October 29, approved an import tariff on petrol and diesel, a policy expected to raise the landing cost of imported fuel.

The President’s approval was conveyed in a letter signed by his Private Secretary, Damilotun Aderemi, following a proposal submitted by the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji.

The proposal sought the application of a 15 per cent duty on the cost, insurance, and freight value of imported petrol and diesel to align import costs with domestic market realities.

Implementation was slated to take effect on November 21, 2025.

The policy aimed to protect and promote local refineries like the Dangote Refinery and modular plants by making imported fuel more expensive.

While intended to boost local production, it is also expected to increase fuel costs, which could lead to higher inflation and transportation prices for consumers.

Experts have argued that the move could translate into higher pump prices for consumers, with some estimating an increase of up to N150 per litre or more.

In an update, however, NMDPRA said the government was no longer considering going ahead with implementing the petrol import duty.

“It should also be noted that the implementation of the 15% ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in View,” the statement read in part.

Meanwhile, the NMDPRA also assured all that there is an adequate supply of petroleum products in the country, within the acceptable national sufficiency threshold, during this peak demand period.

“There is a robust domestic supply of petroleum products (AGO, PMS, LPG, etc) sourced from both local refineries and importation to ensure timely replenishment of stocks at storage depots and retail stations during this period.

“The Authority wishes to use this opportunity to advise against any hoarding, panic buying or non-market reflective escalation of prices of petroleum products.

“The Authority will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent disruption of supply and distribution of petroleum products across the country, especially during this peak demand period.

“While appreciating the continued efforts of all stakeholders in the midstream and downstream value chain in ensuring a smooth and uninterrupted supply and distribution, the public is hereby assured of NMDPRA’s commitment to guarantee energy security,” the statement added.