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CBN Explains Challenges In Monetary, Fiscal Sector

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The Central Bank of Nigeria (CBN) says excess volatility in exchange rates creates uncertainty and risk for economic agents and has devastating effects on macro economics.
Mr Moses Tule, Director, Monetary Policy Department, Mr. Moses Tule said this at a three-day National Treasury Workshop organised by Office of the Accountant-General of the Federation  in Abuja, yesterday.
He spoke on “ Issues, challenges and opportunities in managing Nigeria’s monetary and fiscal sector”.
represented by Mr Jibrin Musa of same department, he said that maintaining relatively stable exchange rate was critical for both internal and external balance and growth of the economy.
“Another key challenge to the indirect implementation of monetary policy is the unreliability of forecasts for fiscal revenue and expenditure.
“This is largely attributed to volatile oil output and price which is the major contributor of fiscal revenues.
“ Consequently, fiscal operations become largely irresponsive to traditional liquidity management approaches,” he said.
According to him, the state of the existing payment system infrastructure is another challenge to liquidity management in Nigeria.
He said that existing infrastructure had limited reach, depth and credibility, adding that bank branch and population ratio were inadequate for effective flow of liquidity in the Nigerian economy.
“ The financial system in Nigeria is largely structured along the dividing lines of urban and rural and formal and informal dichotomy.
“This, in addition to low level of financial literacy, impedes the responsiveness of market-based liquidity management initiatives,” he added.
He noted that the apex bank, in spite of the challenges, had constantly fine-tuned operations of the financial system, to ensure that it provided a platform for the transmission of monetary policy.
This, he said, brought about improvement in the inter bank and foreign exchange markets and thus, created competition among banks.
“it also includes reaching the population in rural areas that previously had no access to banking services through financial literacy advocacy, cashless policy, mobile and agent banking framework.
“This helps to spread technology and financial services to non-banked areas,” he said
He added that CBN was developing appropriate macroeconomic policy coordination platform that would ensure that government’s cash management was consistent with the CBN’s overall liquidity management.
On challenges with the fiscal sector, he said oil price slump and threat to fiscal revenues; fiscal leakages, insecurity, infrastructure gaps and uncooperative attitude of tax payers were major challenges.
“ In Nigeria, there is widespread apathy towards the payment of tax, particularly in situations where the tax payer is expected to file such returns himself.
“The Pay-As-You-Go system has greatly enhanced tax collection among corporate organisation’s and a few registered businesses.
“This situation is worse in the large informal sector where enormous tax revenues could be obtained but has not been adequately captured in formal records,” he said
In spite these challenges, he said that there were avenues that could be used to tackle the root causes.
This, he said, included CBN and Ministry of Finance enhanced collaboration to devise newer ways to achieve efficient utilisation of government deposits.
He added that in collaborating, it should be ensured that government borrowing did not crowd out private sector.
He further said that the monetary and fiscal authorities should create a technical committee on macroeconomic management to agree on common macroeconomic objectives and forecast of key macroeconomic variables for policy decisions.

Rivers State Commissioner for Commerce and Industry, Hon Chuma C. Chinye (left) presenting an award to the Vice Chairman, Moni Pulo, Mrs Seinye Lulu Briggs, during Garden City Corporate Awards, organised by the Ministry of Commerce and Industry, Port Harcourt.                                                                               Photo: Egberi Sampson

Rivers State Commissioner for Commerce and Industry, Hon Chuma C. Chinye (left) presenting an award to the Vice Chairman, Moni Pulo, Mrs Seinye Lulu Briggs, during Garden City Corporate Awards, organised by the Ministry of Commerce and Industry, Port Harcourt. Photo: Egberi Sampson

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Nigeria Loses N17tr Yearly To Abandoned Projects

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The Federal Government has disclosed that it has lost an estimated N17 trillion to abandoned and uncompleted projects across the country.

The Minister of State for Industry, Trade and Investment, John Enoh said this at the 8th annual induction and conference of the Chartered Institute of Project Managers of Nigeria (CIPMN).

He explained that abandoned projects continue to lock up public funds that could have been used for infrastructure development, industrial growth, job creation and essential social services.

Represented by the ministry’s Permanent Secretary, Chris Osa Isokpunwu, he said the impact goes beyond financial losses, as incomplete projects affect communities and limit access to important public services

He cited examples of  that remain unopened, schools that cannot accommodate students, roads that fail to connect communities and electricity projects that have not delivered their intended benefits.

The Registrar-General and Chief Executive Officer of CIPMN, Henry Ifeanyi Mbadiwe, also identified poor project management as a major challenge affecting development in Nigeria.

He revealed that the institute had developed a project management curriculum for Nigerian universities, which has received approval from the National Universities Commission (NUC). The programme is expected to enable universities to offer project management as a bachelor’s degree.

Mbadiwe further referenced findings by the Presidential Projects Assessment Committee, which identified 11,886 ongoing federal capital projects in 2011, with an estimated financial commitment of ?7.78 trillion.

He noted that inadequate planning, supervision, accountability and implementation were among the factors contributing to the abandonment of projects across the country.

The minister called for stronger project management structures across ministries, departments and agencies to improve planning, monitoring and evaluation.

He added that the Federal Ministry of Industry, Trade and Investment had introduced a 90-day implementation reporting cycle to strengthen transparency and monitor the progress of government programmes.

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Transcorp Power seeks sustained investment across Nigeria’s electricity value chain

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Transcorp Power Plc Managing Director and Chief Executive Officer Peter Ikenga has called for sustained investment across Nigeria’s electricity value chain to improve power supply and make the sector self-sustaining.

Ikenga said the company remained committed to Nigeria’s power sector and would continue investing in its operations despite the challenging business environment.

He spoke in Lagos at the third edition of the Shell Power Conference, themed “Powering Nigeria’s Progress: Turning Ambition and Action into Sustainable Impact”.

The Transcorp Power chief said the company would sustain electricity generation, invest in its facilities and deliver value to shareholders.

“Transcorp Power is a long-term player, not a short-term player. This year has been challenging, but what is important is getting power to schools, hospitals and businesses to power progress,” he said.

Ikenga said the company’s focus on operational efficiency and investment had strengthened its contribution to Nigeria’s electricity supply.

He disclosed that since acquiring the Ughelli Power Plant in Delta State in 2013, Transcorp Power had quadrupled its available generation capacity.

He also said the company became the first privatised power generation firm to receive a post-privatisation discharge certificate after fulfilling all its privatisation obligations.

The company’s unaudited results for the nine months ended September 30, 2026, showed a profit before tax of N83.1 billion, while its profit-before-tax margin rose to 31.2 per cent from 29.6 per cent recorded in the corresponding period of 2025.

Its total assets rose to 11.7 per cent amounting to N629.5 billion, while shareholders’ funds grew 8.9 per cent to N199.8 billion. Cash and cash equivalents also rose to N10.3 billion, supported by improved collections.

On the company’s contribution to grid stability, Ikenga said Transcorp Power’s black-start capability enabled it to restart operations without relying on electricity from the national grid.

He explained that the capability allowed the company to support power restoration following grid disturbances, helping to restore electricity supply to homes, businesses and industries.

Ikenga noted that Nigeria had an installed electricity generation capacity of about 13,000 megawatts, with an estimated potential of 50 gigawatts, adding that realising the potential would require effective coordination across the entire value chain.

“Everything in the value chain has to work,” he said.

He called for stronger collaboration among federal and state governments, regulators and private-sector operators, alongside increased private investment, to build a sustainable electricity market.

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FG generates N33tn revenue in 10 months – Oyedele

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The Federal Government generated a record of N33tn in revenue between January and October 2026, with improvements in digital tax administration and electronic invoicing boosting collections.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed
this while delivering the convocation lecture at the University of Uyo, Akwa Ibom State, where he called for greater investment in Nigeria’s digital infrastructure to strengthen economic competitiveness and government revenue mobilisation.

This was contained in a statement issued on Thursday by his Senior Special Assistant on Communications and Press Secretary, Maryann Duke.

The statement said Oyedele pointed to “improved digital systems, including electronic invoicing, as a key driver behind a record of  N33tn in government revenue collected between January and October 2026.”

The minister said the performance demonstrated the potential of technology to improve revenue administration, strengthen compliance and increase efficiency across government institutions.

Speaking on the theme, ‘Digital Sovereignty and Ethics: Guarding the Economy for the Next Generation,’ Oyedele warned that Nigeria risked losing substantial economic opportunities if it continued to depend heavily on foreign digital infrastructure.

Citing Nigerian Communications Commission figures, he disclosed that the country recorded more than 157 million active internet subscriptions as of May 2026.

He explained that these connections generated significant volumes of information through financial transactions, healthcare, education and taxation.

However, citing estimates from the Nigeria Data Protection Commission, Oyedele said as much as 90 per cent of the country’s data was hosted abroad.

According to him, the situation has implications for foreign exchange expenditure, employment opportunities, technological skills and Nigeria’s control over information generated by its citizens.

He compared the country’s reliance on foreign digital infrastructure with its historical dependence on imported refined petroleum products, warning against a situation where Nigerian data would be processed abroad and the resulting services sold back to domestic users.

The minister consequently advocated greater investment in local data infrastructure, technical expertise, cybersecurity and predictable regulations to enable Nigerian businesses to capture more value from the digital economy.

He clarified that digital sovereignty should not translate into technological isolation but should strengthen Nigeria’s capacity to participate competitively in international markets.

Addressing graduating students, Oyedele urged young Nigerians to become developers of technological solutions rather than remain primarily consumers of products created elsewhere.

He identified artificial intelligence as both a disruptive force and an opportunity for innovation, advising graduates to acquire relevant digital skills alongside critical thinking, creativity, sound judgement and integrity.

The minister also cautioned against irresponsible online behaviour, explaining that digital footprints increasingly influence employment prospects, commercial relationships and professional credibility.

Oyedele outlined five priorities for graduates, including continuous learning, value creation, integrity, responsible digital citizenship and active participation in national development.

“Your degree is evidence of what you have learned. Your competence will demonstrate what you can do. Your character will reveal who you truly are,” he told the graduating students.

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