News
Naira-for-crude: Marketers fear price hike as FG suspends sale to Dangote
Following the Dangote Petroleum Refinery’s suspension of the sale of petroleum products in naira, some filling stations have started stockpiling Premium Motor Spirit, otherwise known as petrol.
The retailers are storing the product to ensure they have enough to sell at a higher rate, having projected that the price of petrol would go up soon as a result of the failure of the Federal Government to continue the sale of crude oil to the Dangote refinery in the local currency.
However, the Independent Petroleum Marketers Association of Nigeria warned these retailers to stop panic buying as they may run into heavy losses.
Last week, the Dangote refinery announced that it had temporarily halted the sale of petroleum products in naira as the naira-for-crude talks between it and NNPCL appeared to have failed.
The 650,000 barrels per day capacity refinery lamented that there was a mismatch between its sales proceeds and its crude oil purchase obligations, which it said are currently denominated in US dollars.
“Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.
“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency,” the firm announced.
Immediately after the announcement, the cost of loading petrol at private depots in Lagos jumped to about N900/litre. It was less than N850/litre before the announcement.
In an interview on Sunday, the National Publicity Secretary of IPMAN, Chinedu Ukadike, said depot owners were profiteering even as some owners of filling stations were in a rush to stockpile fuel.
According to him, the demand for PMS has risen since Wednesday, when Dangote made the announcement. As a result, depot owners were said to have raised their prices to make more profit.
It was observed that players in the downstream petroleum sector have been left to continue speculating on the prices of petroleum products as the Federal Government had kept mute since the announcement made by the Dangote refinery.
Five days after the announcement, the refinery has yet to tell marketers how the dealers will buy PMS going forward.
Private depot owners wasted no time in jerking up their prices in anticipation of a possible hike in petrol prices. Although owners of filling stations have yet to increase their prices, they are already buying to sell for more gains when the price goes up later.
But Ukadike condemned depot owners for profiteering from the impasse between the Federal Government and the Dangote refinery, saying that is not good for the economy.
He warned marketers not to panic-buy because the Dangote refinery may crash the price.
“Some depot owners are already increasing the price. But we are also asking our marketers not to panic-buy. Because definitely when the Dangote refinery comes back and reverses the price, it will be a huge loss for these marketers. Depot owners are using this opportunity to profiteer. This is not good for the economy.
“Some marketers are also stockpiling PMS in a bid to increase the price based on the suspension of naira sales by the Dangote refinery. They speculate that the price will go higher and they will make more money from the fuel they are buying now. It may not be so. This issue will be resolved,” Ukadike stated.
He warned all marketers against buying large volumes of petrol to avoid running into debt.
“We, the independent marketers, are asking our members not to buy so much goods because when they buy so much volume of fuel at a higher rate from the depot owners, at the end of the day, it might result in losing a lot of capital.
“Dangote may crash the price and most of them with high volumes of PMS will run into problems. So, all marketers should be careful to avoid losses,” he advised.
The IPMAN spokesman disclosed that the Federal Government and Dangote refinery are resolving their misunderstanding to allow the resumption of the naira crude sales. He stated that stakeholders are waiting to hear the conclusion from either party.
“I have gathered that the Federal Government and Dangote refinery are almost resolving this matter.
“The two of them are reviewing the naira-for-crude deal to continue the sale of crude oil in naira to the refinery again. But the official statement has not come out. We are waiting for the official statement,” Ukadike revealed.
Sources from the Federal Ministry of Finance and the Federal Ministry of Petroleum Resources had earlier confirmed that the Technical Sub-Committee on the Naira-for-Crude Policy would reconvene today (Monday) to deliberate on the matter.
It was gathered that the committee had mandated the Nigerian Upstream Petroleum Regulatory Commission to come up with options that would be reviewed by the panel as it struggles to return the naira-for-crude deal.
The insider familiar with the workings of the naira-for-crude said the transaction would not be halted permanently. The source, who spoke in confidence due to lack of authorisation to speak on the matter, pointed out that NNPCL had issues with crude availability.
Industry experts and oil marketers warned that the halt in naira sales by the Dangote refinery could increase the pressure on the foreign exchange market, as dealers would now have to access the United States dollars in large amounts to buy petroleum products.
This came as multiple industry sources familiar with what prompted the failure in the naira-for-crude talk decried the Nigerian National Petroleum Company Limited’s humongous forward sale of crude.
They stressed that the national oil company had used large volumes of its yet-to-be-produced crude oil to acquire loans from various international financial institutions, making it tough for the oil firm to have enough crude to supply the domestic market.
Soneye said 48 million barrels of crude had been supplied to the Dangote refinery since October.
The Dangote refinery’s suspension of the sale of petroleum products in naira means marketers would have to source dollars before buying petrol from the facility.
The National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, said there could be pressure on the naira, and it would lose the stability it had gained lately.
Experts have said that the naira-for-crude deal emboldened the Dangote refinery to lower the prices of PMS repeatedly, forcing the NNPC to do so even when it was affecting its margins.
At a point, the Petroleum Products Retail Outlet Owners Association of Nigeria, which once commended Dangote for the price slashes, kicked against it, asking the regulator to make it mandatory that prices should only be slashed after six months.
Meanwhile, industry sources said stopping the naira-for-crude deal might be a calculated attempt to reduce the influence of the Dangote refinery, which some players in the downstream accused of planning monopolistic tendencies.
Reacting, domestic crude oil refiners argued that the halt in crude supply in naira was the latest ploy to frustrate the Dangote refinery and bring back the full importation of refined petroleum products.
The National Publicity Secretary of the Crude Oil Refinery-owners Association of Nigeria, Eche Idoko, disclosed that suspending the deal defeats the efforts of all stakeholders in the sector to achieve energy security.
Seven vessels carrying imported Premium Motor Spirit, popularly called petrol, were expected to berth at seaports along the nation’s borders between March 17 and 23.
According to a document obtained from the Nigerian Port Authority on Thursday, these vessels carrying 115,000 metric tonnes representing 154.22 million litres of PMS will bring in products through three seaports to improve fuel supply nationwide.
An analysis of the document from NPA showed that the commodities landed at the Tincan port in Lagos, the Lekki Deep Seaport in Lagos, and the Calabar port in Cross River State.
The document also revealed that the Dangote refinery imported 654,766 metric tonnes of crude oil within the same period.
Fuel crisis
Recall that the Dangote refinery in Lekki, Lagos State, was greeted by crude challenges when it began operations last year.
The President of the Dangote Group, Alhaji Aliko Dangote, had cried out, saying some international oil companies were planning to sabotage the investment by refusing to supply crude.
The Dangote Group had alleged that the IOCs insisted on selling crude oil to its refinery through their foreign agents.
It said the local price of crude would continue to increase because the trading arms offered cargoes at $2 to $4 per barrel, above the official price.
The group also alleged that the foreign oil producers seem to be prioritising Asian countries in selling the crude they produce in Nigeria.
Despite the intervention of the Nigerian Upstream Petroleum Regulatory Commission in July, the group insisted that the IOCs were still frustrating the refinery.
The Vice President, Oil & Gas, Dangote Industries Limited, Mr Devakumar Edwin, said, “If the Domestic Crude Supply Obligation guidelines are diligently implemented, this will ensure that we deal directly with the companies producing the crude oil in Nigeria as stipulated by the Petroleum Industry Act.”
Edwin insisted that IOCs operating in Nigeria had consistently frustrated the company’s requests for locally-produced crude as feedstock for its refining process.
He highlighted that when cargoes were offered to the oil company by the trading arms, it was sometimes at a $2 to $4 (per barrel) premium above the official price set by the NUPRC.
The issue escalated and drew angry reactions from many Nigerians when the Chief Executive of the NMDPRA, Farouq Ahmed said local refineries were producing fuels less in quality than imported ones.
Concerned by the controversies, President Bola Tinubu, during a Federal Executive Council meeting on July 29 proposed the sale of crude to local refineries in naira.
The Federal Executive Council adopted the proposal by Tinubu to sell crude to the Dangote refinery and other upcoming refineries in the local currency.
FEC approved that the 450,000 barrels meant for domestic consumption be offered in naira to Nigerian refineries, using the Dangote refinery as a pilot.
A media aide to the President, Bayo Onanuga, said in July that “the exchange rate will be fixed for the duration of this transaction.”
PUNCH
When Alhaji Atiku Abubakar recently said he would restore petroleum subsidy if elected president, he tapped into a familiar frustration. Fuel prices are high, transport costs bite, and households are feeling the squeeze. That pain is real. But the promise to bring back the old subsidy regime is not relief. It is a return to a policy that bled the treasury, starved the states, and kept Nigeria dependent on borrowing to buy fuel.
For decades the subsidy was sold as a welfare program for the poor. In practice it became the most expensive welfare program for smugglers, marketers, and a handful of importers. The Nigerian National Petroleum Company would claim billions monthly, and no one could audit where the product actually went. That was not social protection. That was fiscal leakage at scale.
The first and most immediate benefit of subsidy removal is fiscal breathing room. In 2022 alone, subsidy gulped over 4 trillion naira. That was more than we spent on education, health, and capital projects combined. When that money stopped going to fuel, it did not disappear. It stayed in government coffers, and a large share of it flows directly to the sub nationals through FAAC.
The sub nationals are where the difference is being felt most. States and local governments now receive significantly higher monthly allocations. Governors in Rivers, Lagos, Kano, and others have reported FAAC receipts nearly doubling compared to pre-removal levels. That is money that can pay teachers, fix primary health centers, and clear pension arrears without waiting for Abuja bailouts.
In Rivers State, for example, the additional resources have allowed the state government to accelerate road projects, expand the school feeding conversation, and invest in water and sanitation. Across the country, states are using the windfall to clear salary backlogs and to fund security. That is the direct link between subsidy removal and better services at your doorstep.
Beyond recurrent needs, the removal unlocked capital spending. With subsidy gone, the federal government and states are no longer borrowing just to keep petrol cheap. Instead, we are seeing commitments to CNG buses, mass transit, student loans, and conditional cash transfers. These are targeted interventions. They reach the vulnerable without subsidizing a businessman in Cotonou who drives across the border to buy cheap fuel.
One of the quietest but biggest wins is the end of the subsidy-driven smuggling economy. When Nigerian petrol was artificially cheap, an estimated 30 to 40 percent was leaving our borders daily. That drained our forex and rewarded criminal networks. With prices aligned to market, the incentive to smuggle collapsed almost overnight. That saves dollars and restores integrity to our supply chain.
Sub nationals also gained policy space. Before, states were trapped. They could not raise IGR fast enough to match their responsibilities because the center was spending all its revenue on fuel. Now, with more money coming from FAAC and with subsidy no longer a federal albatross, states can plan medium-term budgets. They can borrow for infrastructure knowing their revenue base is real, not propped up by a phantom fuel bill.
The macroeconomic case is just as strong. Subsidy removal freed up foreign exchange that was being used to import and “subsidize” fuel. That pressure contributed to naira volatility. With the drain gone, the CBN has more room to stabilize the market, and investors see a government willing to make hard choices. Confidence matters for FDI, and FDI builds factories, not just fuel stations.
Let us be honest about the counterargument. Atiku and others argue that Nigerians cannot afford the current prices and that government should cushion the pain by restoring subsidy. The compassion is understandable. But the method is wrong. A blanket subsidy is the bluntest tool possible. It subsidizes the rich who own three cars, it subsidizes generators in malls, and it subsidizes our neighbors.
Targeted support is both cheaper and fairer. The savings from subsidy removal are already funding student loans, nano-grants, and public transport reforms. Those programs can be scaled. If we put 1 trillion naira directly into transport, health insurance, and food support, the impact on the poor will be ten times what the same 1 trillion did when spread thinly across every liter of petrol.
International experience backs this. Indonesia, India, and Ghana all removed fuel subsidies and redirected the savings to health, education, and cash transfers. In each case there was short-term pain, followed by stronger public services. Countries that reversed course and brought subsidies back, like Egypt in 2014 before its second reform, ended up in deeper debt crises.
Restoring subsidy now would also reverse private sector investment. Since the removal, private companies have begun investing in refineries, CNG conversion centers, and logistics. Dangote Refinery, modular refineries, and gas infrastructure are viable only because prices reflect costs. If we announce that subsidy will return, those investors pause. That means fewer jobs in Port Harcourt, Warri, and Lagos.
For the sub nationals, a return to subsidy is a direct pay cut. FAAC would shrink again. States would go back to borrowing to pay salaries. Projects started with the new revenues would stall. Local governments, which depend almost entirely on federal transfers, would be the first to feel it. That is not theoretical. We lived it for 20 years.
Atiku’s argument rests on the idea that the timing was wrong and the palliatives were insufficient. Fair critique. But the solution to poor implementation is better implementation, not abandoning the reform. We should demand faster rollout of CNG buses, more transparency in how FAAC windfalls are spent, and stronger monitoring of state budgets. We should not demand a return to the policy that caused the weakness.
The subsidy was also a corruption magnet. It created a system where claims were king and verification was optional. Removing it broke that cycle. Bringing it back without fixing the governance structure is inviting the same fraud, only now with higher global oil prices and a weaker naira.
There is also a climate and energy angle. Cheap petrol discouraged gas adoption and kept us locked into generators. With market pricing, CNG, electric tricycles, and solar become economically sensible. States can lead this transition because they now have the funds to subsidize conversion kits, not fuel itself.
Politically, the promise to restore subsidy sounds popular in the short term. But governance is about trade-offs. The trade-off here is clear: cheap fuel for a few months versus hospitals, roads, and jobs for years. Sub nationals have already shown what they can do with the extra money. To take it away is to punish the very level of government closest to the people.
Finally, debt. Subsidy was financed largely by borrowing and by unpaid arrears to NNPC. That debt was crowding out everything else. Every naira we do not spend on subsidy is a naira we do not have to borrow. That lowers interest payments, which in turn frees more money for states and local governments.
Nigeria does not need a return to the past. We need to finish the work of this reform. That means plugging leakages, auditing state spending, and scaling targeted support so no family is left behind.
Alhaji Atiku is a respected Nigerian, but on this point he is wrong. Restoring subsidy would undo the single most important fiscal correction we have made in a generation. It would hurt the states, weaken the naira, and put us back on the borrowing treadmill.
The better path is forward. Keep the subsidy gone. Let the sub nationals keep the resources. And let government prove that the savings can translate into tangible relief. That is how we turn pain into progress, and that is how we build a Nigeria that works beyond election cycles.
CHINEDUM ENYINNAYA ORJI writes from Amaokwe Ugba, Umuahia Ibeku and the All Progressives Congress Candidate for Ikwuano Umuahia Federal Constituency.
Seven people have died and seven others sustained injuries in a fatal road crash on the Bida-Kutigi road in Niger State, the Federal Road Safety Corps (FRSC) has confirmed.
The FRSC Niger Sector Commander, Corps Commander Aishatu Sa’adu, confirmed the incident to the News Agency of Nigeria (NAN) on Sunday.
Sa’adu said the crash occurred on Sunday afternoon at Shebe village, a few kilometres from Kutigi town.
According to her, the accident involved a Mazda vehicle and a Siena bus travelling along the Bida-Kutigi road.
“Seven people lost their lives, seven others were injured while four were rescued without injuries, bringing the total involved to 18,” she said.
The sector commander said the seven victims who died were confirmed dead at the scene, while the injured victims sustained injuries of varying degrees.
She said the injured were evacuated to Kutigi General Hospital for medical attention, while the remains of the deceased were deposited at the hospital’s mortuary.
The FRSC official did not immediately disclose the identities of the victims or provide further details on the circumstances surrounding the collision.
The crash involved a total of 18 people, comprising seven fatalities, seven injured persons and four uninjured survivors.
Authorities are expected to investigate the cause of the accident and determine the circumstances that led to the fatal collision.
The presidential candidate of the People’s Redemption Party (PRP), Donald Duke, has described as a “lie” the claim that Nigeria is Africa’s wealthiest country, arguing that the country remains one of the poorest on the continent when measured by per capita income.
Duke, a former governor of Cross River State, stated this during an interview with journalists in Lagos.
He said Nigeria’s position as Africa’s largest economy by Gross Domestic Product (GDP) did not necessarily reflect the living standards of its citizens.
“It is embarrassing that a country that was considered one of the wealthiest in Africa still thinks today that it is the largest economy in Africa. That is not true.
“We are living a lie. It is a nice sound bite, though, to say that Nigeria is the largest economy in Africa. No. Nigeria is just one of the poorest when you take per capita income into consideration,” he said.
Duke said productivity remained critical to economic development, noting that several countries Nigerians considered smaller had higher per capita incomes.
On insecurity, the PRP presidential candidate said he preferred not to describe terrorists operating in Nigeria as “Islamic terrorists”, arguing that their activities were not driven by Islam.
He attributed part of the security challenges, particularly in Northern Nigeria, to the collapse of Libya, which he said contributed to the movement of arms into Nigeria through its land borders.
Duke said the government needed short-, medium- and long-term measures to tackle kidnapping, banditry and terrorism.
“Right now, you have got to deal with the security problems as they exist today — kidnapping, banditry, terrorism and all that.
“But even beyond that, those things are consequences of other things. They are consequences of a very poor economy and, of course, the failure to properly manage our borders,” he said.
He also called for measures to improve citizens’ productivity through increased local production and the use of modern technology to strengthen border security.
On the economic development of Northern Nigeria, Duke said that, if elected president, he would restructure mining activities in the region to ensure that local and state governments, as well as host communities, benefited from the sector.
He said the region’s mineral deposits, rather than oil in the Chad Basin, represented a major economic opportunity.
“There must be a structured way of mining. Today, it is artisanal, and the broader community, the border communities, society and the nation itself do not adequately benefit from those resources,” Duke said.
He cited gold deposits in Zamfara State as an example, saying insecurity had affected mining activities in the area.
Duke proposed that each state should be treated as an economic entity, with the Federal Government working with state governments to assess mineral deposits and establish proven reserves capable of attracting investors.
He said mining development should involve a partnership between the Federal and state governments, with revenues shared between both levels of government.
However, Duke stressed that security remained essential to attracting investment into the mining sector.
“Nobody is going to invest if there is no security,” he said, citing the experience of the Niger Delta, where insecurity had contributed to oil companies moving their operations to offshore locations.
This scrutiny follows the revelation that the Federation Account disbursed about N47tn to the three tiers of government in the three years since the removal of petrol subsidy.
This was as the Federal Government, 36 states and 774 local governments shared a cumulative N93.216tn as revenue from the Federation Account between 2017 and 2025, with more than half of the amount distributed in the three years following the economic reforms introduced by the Federal Government in 2023.
These figures were disclosed in a document obtained by our correspondent from the Federal Ministry of Finance on Sunday.
It showed that N47.25tn, representing about 50.7 per cent of the N93.13tn shared during the period, was distributed between 2023 and 2025 alone, highlighting the sharp expansion in revenues following the removal of petrol subsidy, exchange rate reforms and increased revenue mobilisation.
But policy analysts, civil society groups and other critics say the increase in revenue has not translated into a corresponding improvement in the living conditions of Nigerians facing rising living costs, unemployment, poverty and inadequate public services.
In an interview, a policy analyst, Adebayo Abubakar, said the removal of subsidy had increased government revenues but argued that the additional funds had not always translated into spending that reflected the economic hardship facing Nigerians.
“Roads, bridges, drainage and other infrastructure remain important, but some governments appear to favour conspicuous projects while schools, healthcare facilities, water supply and other basic services receive inadequate attention,” he said.
The removal of petrol subsidy and other economic reforms introduced by the Federal Government in 2023 have triggered an unprecedented surge in revenue flowing into the Federation Account, with the 36 states and 774 local government areas receiving significantly higher allocations amid growing questions over how the windfall has translated into improved infrastructure, security and public services.
The sharp increase in Federation Account Allocation Committee payouts has, however, placed state governors under renewed scrutiny, as many Nigerians continue to grapple with high living costs, poor infrastructure and worsening insecurity despite the substantial growth in revenues available to subnational governments.
While some governors have linked higher FAAC receipts to road construction, bridges, healthcare, education, workers’ welfare and other projects, residents in some states said the increased revenue had not resulted in improved public services or reduced economic hardship.
Findings by The PUNCH showed that the Federal Government, states and local governments received about N47tn from the Federation Account in the three years following the reforms, exceeding the amount shared in the preceding six-year period and reigniting the debate over the benefits and consequences of the subsidy removal policy.
FAAC disbursements
The document showed that FAAC distributions rose from N5.64tn in 2017 to N21.90tn in 2025, representing an increase of about 288 per cent over the nine-year period.
Year-by-year, net FAAC stood at N5.64tn in 2017, N7.98tn in 2018, N7.85tn in 2019, N7.11tn in 2020, N8.12tn in 2021 and N9.18tn in 2022. It subsequently rose to N10.09tn in 2023, N15.26tn in 2024 and a record N21.90tn in 2025.
The development highlights the dramatic transformation in Nigeria’s federation revenue following the removal of petrol subsidy, reforms in the foreign exchange market and efforts to improve revenue mobilisation.
It also exposes the limits of measuring Nigeria’s revenue growth in naira terms alone. While the removal of petrol subsidy, foreign exchange reforms and improved revenue mobilisation helped to push FAAC allocations sharply higher, a significant part of the increase reflects the devaluation of the naira.
For instance, Nigeria shared N7.98tn through FAAC in 2018, which, at the Central Bank of Nigeria exchange rate at the time, was equivalent to about $26bn. By 2025, the amount shared had risen almost threefold to N21.9tn. However, when converted at the CBN exchange rate for 2025, the allocation was worth only about $14.4bn.
In other words, while FAAC distribution increased by about 174 per cent in naira terms between 2018 and 2025, its dollar value fell by roughly 45 per cent, or about $11.6bn.
The comparison suggests that the apparent surge in federation revenue was driven not only by increased revenue generation and reforms, but also by the weaker naira, which translated dollar-denominated oil and other foreign currency earnings into substantially larger amounts of naira.
The document showed that net FAAC allocations stood at N5.64tn in 2017 and rose to N7.98tn in 2018, representing a 29 per cent increase. However, growth was not sustained in the following two years.
The distributable revenue fell by two per cent to N7.85tn in 2019. It declined further by 10 per cent to N7.11tn in 2020, reflecting the economic disruptions associated with the COVID-19 pandemic and developments in the oil market.
The distributable revenue, however, recovered to N8.12tn in 2021 and increased to N9.18tn in 2022. The document put the average annual growth rate for the pre-reform period at eight per cent. But the sharpest increase came after the reforms introduced in 2023.
Net FAAC rose to N10.09tn in 2023, representing a nine per cent increase. It then jumped by 34 per cent to N15.26tn in 2024 and expanded by another 30 per cent to a record N21.90tn in 2025.
This means the average annual growth rate accelerated from eight per cent in the pre-reform period to 24 per cent between 2023 and 2025. In effect, the pace of growth in distributable federation revenue was three times higher in the post-reform period than the average recorded before the reforms.
The figures also showed the extraordinary weight of the last three years in Nigeria’s federation revenue history. Of the N93.13tn shared between 2017 and 2025, the N47.25tn distributed between 2023 and 2025 alone exceeded the combined allocations recorded in several earlier years, meaning that every N2 shared over the nine-year period contained more than N1 distributed after the reforms.
Finance ministry speaks
The Federal Ministry of Finance, in its assessment of the reforms, said states and local governments had received substantially higher allocations, increasing the resources available to subnational governments for salaries, pensions, infrastructure and other public responsibilities.
The ministry said, “States and local governments received significantly higher allocations through the Federation Account, increasing the resources available to meet salaries, pensions, infrastructure and other responsibilities at the subnational level that benefit the people.”
It added that, compared with the monthly run-rate before the removal of petrol subsidy, “states received about N9.17tn in additional allocations from June 2023 to December 2025,” while local governments received about N6.66tn in additional allocations during the same period.
Further analysis of tier-by-tier annual distribution figures for 2022 to 2025 showed that the Federal Government received N1.996tn in 2022, N3.749tn in 2023, N4.570tn in 2024 and N7.024tn in 2025, bringing its four-year allocation to about N17.34tn.
The figures showed that the states emerged as the biggest beneficiaries of the post-reform expansion in FAAC receipts. Their annual allocation jumped from N4.18tn in 2023 to N8.93tn in 2025, more than doubling within two years. In 2024, states received N6.53tn, exceeding the Federal Government’s N4.57tn allocation in the figures contained in the document.
A World Bank analysis similarly identified 2024 as a turning point when state governments received more from FAAC distributable revenues than the Federal Government, reflecting a structural shift in the pattern of federation revenue distribution.
The expansion in FAAC receipts has been linked largely to the fiscal reforms introduced by President Bola Tinubu’s administration after it assumed office in May 2023.
The reforms included the removal of petrol subsidy and changes to the foreign exchange regime, alongside efforts to improve tax collection and revenue remittances.
News
Nwabueze Denies Running ‘Fake Agency’, Says Made-in-Nigeria Project Has Operated Under OSGF for 16 Years
The National Coordinator and Executive Director of the National Brands Development and Made in Nigeria Special Project Office, George Nwabueze, has denied the allegation of running a “fake agency” in the country.
Nwabueze, who spoke with newsmen on Saturday, noted that he oversaw an office which was under the supervision of the Office of the Secretary to the Government of the Federation.
He noted that the office had been in existence for 16 years.
The Independent Corrupt Practices and other related offences Commission had on Friday said the President had ordered Nwabueze’s arrest for leading and promoting the outfit, which it tagged as a fake federal agency.
The ICPC said the accused was running it with the collaboration of senior public servants in the Office of the Secretary to the Government of the Federation.
But responding to our correspondent, the embattled executive director said, “Made in Nigeria Special Project Office is a project office in the OSGF. We don’t know where fake agency comes from. A programme that has been in the SGF’s office since 16 July 2010 was just discovered yesterday (Friday). After 16 years; Nigeria is a funny country.”
Nwabueze spoke while responding to our correspondent’s enquiries on LinkedIn, where he had earlier posted his appointment letter to rebuff ICPC’s claim of illegality.
The letter, dated October 3, 2025, was purportedly issued by the Office of the Secretary to the Government of the Federation.
It was referenced OSGF/MIN/59310/11/205 and signed by the Permanent Secretary, Political and Economic Affairs Office, Nadungu Gagare.
The letter, addressed to “Hon. George Buchi Nwabueze, National Coordinator, Made in Nigeria Project Office, OSGF, Three Arms Zone, Abuja,” conveyed the approval of his appointment as National Coordinator/Executive Director of the Made in Nigeria Project Office under the OSGF.
According to the document, the appointment was for a five-year tenure beginning from July 2025 and was renewable.
“I am directed to formally convey the approval of your appointment as National Coordinator/Executive Director of the Made in Nigeria Project Office under the Office of the Secretary to the Government of the Federation,” the letter stated.
It added that the appointment followed “a careful evaluation of your commitment, contribution, and capacity in delivering on the mandate of the Special Project Office.”
The document listed Nwabueze’s responsibilities to include the supervision and development of programmes, projects and policies; supervision of regional and state coordinators across the 36 states; and organisation of exhibitions, trade expos, economic summits and other promotional initiatives aimed at promoting indigenous products and services.
It further stated that the project was to operate temporarily from Room B53, Ground Floor, within the OSGF complex.
“Please note that this appointment is at the pleasure of the Secretary to the Government of the Federation, and in line with the objectives of the Made in Nigeria initiative under the Renewed Hope Agenda,” the letter said.
Efforts to engage Nwabueze further on the matter proved abortive as he declined response.
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