Business and Economy
20 things you might not know about Nigeria economy post COVID-19 pandemic
There is no doubt the current COVID-19 pandemic would be responsible for many jib lost as a result of downturn in the economy.
In the wake of this and in preparedness for any eventuality, the Ministry of Finance, Budget and National Planning and the Department for Internal Development (DFID) held a citizens’ dialogue session on Nigeria’s response to the fall in oil prices and the COVID-19 pandemic this week.
The panel was led by the Minister for Finance, Budget and National Planning, Zainab Ahmed who was supported by Clem Agba (Minister of State, Budget and National Planning), Ben Akabueze (DG Budget Office of the Federation), and Lade Jaiyeola (CEO, Nigeria Economic Summit Group).
Below are 20 takeaways from the session:
1..The federal government expects GDP to contract by 3.5% YoY (Year on Year) in 2020.
2..Oil earnings is now projected to decline by 90.0% in 2020.
3..Estimated net oil and gas revenue available for Federation Account Allocation Committee (FAAC) distribution is now projected to be 80.0% lower at N1.1 trillion. It used to be N5.5 trillion.
4..Oil production is now projected at 1.7mbpd (million barrel per day) instead of 2.18mbpd. However, an OPEC output cut agreement may also be responsible for this dip.
5..Oil price is expected to average $20 per barrel (recall that Nigeria’s budget is benchmarked on $57 per barrel).
6..The average production cost of Nigerian crude has been revised downward to $28 per barrel from $33 per barrel (with implications for Petroleum Profit Tax).
7..Customs revenue is now projected at N1.2 trillion in 2020 (vs. N1.5 trillion previously).
8..Amount accruable to VAT (Value Added Tax) pool account now projected at N2.0 trillion in 2020 (vs. N2.1 trillion previously).
9..Amount accruable to federation account now projected at N3.9 trillion (vs. N8.6 trillion previously).
10.. Projected federal government receipt from federation account for 2020 is now put at N2.4 trillion (compared to N4.8 trillion previously).
11..States and local governments are now likely to obtain N2.1 trillion and N1.5 trillion, apiece, from FAAC (compared to N3.3 trillion and N2.5 trillion, respectively, in previous estimates).
12..Projected N5.6 trillion budget deficit to be financed through privatization proceeds (N126 billion), draw downs from FGN Special Accounts (c.N260 billion), bilateral/multilateral draw downs (N387 billion), and new borrowings (N4.6 trillion).
13..Debt service pressure to be eased by significant moratoriums on new loans (IMF’s RFI of $3.4 billion comes with 3 years moratorium) and expected deferrals of current debt service obligations until macro conditions improve.
14..As part of measures to alleviate the impact of COVID-19, the government has set up an Economic Sustainability Committee to, among others, assess systemic vulnerabilities and develop programs that would make the expected recession short-lived and ensure sustainable long-term growth.
15..Measures are underway to strengthen agricultural value-chain with strategic focus on land acquisition, road networks, and funding.
Government also plans to off-take agro-products when market conditions are unfavourable.
16..Government is looking at funding support for the aviation sector.
17..The president is likely to decide on land border closures after the current health crisis. Negotiations with neighboring countries have been smooth.
18..Although similar challenges were faced in 2016, Nigeria currently has significantly lower fiscal buffers.
19..The budget office is finalizing a revised 2020-2022 Medium Term Expenditure Framework and Strategy Paper (MTEF/FSP) as well as an amendment to the 2020 Appropriation act
20..According to the Nigerian Economic Summit Group (NESG), Nigeria needs N10.1 trillion worth of interventions right now.
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Business and Economy
Revenue Service Tasks Kogi Assembly On Domestication Of Nigeria Tax Act
From Joseph Amedu, Lokoja
Kogi State Internal Revenue Service (KGIRS) has asked the State House of Assembly to domesticate the Nigeria Tax Act and Nigeria Tax Administration Act, for easy implementation in the state.
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The Executive Chairman of the Service, Dr Salihu Enehe who led his team to the Assembly Complex in Lokoja said the awareness meeting with the Assembly has become imperative.
He described the Nigeria Tax Act as a compressed compendium of various tax laws hitherto operating in the country into a single document with a view to addressing issues of multiple taxation and promotion of transparency in tax administration in the country.
He commended President Bola Ahmed Tinubu for taking the bold step on embarking on the tax reforms to enable harmony in the tax ecosystem.
Enehe said that implementation of the new tax laws, scheduled to take effect from January, 2026, would enhance transparency in administration and transactions, investments and proffer measures against tax evasions.
“On 26th of June this year, the President of the Republic of Nigeria signed four laws, and these four laws have caused disruptions going forward into the future, in terms of tax and Administration”, he said.
“With these disruptions come a great opportunity and great threat. A great opportunity for those who are ready and prepared to abide and adhere to the laws but a great threat for those want to remain in the past and resistant to change.”
According to him, the four laws include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Joint Revenue Board Establishment Act, and the Nigeria Revenue Service Establishment Act.
He noted that implementation of the Nigeria Tax Act and the Nigeria Tax Administration Act operational at states level would be fair to low income earners, reduction for middle level and tough on high income earners.
The Executive Chairman pointed out that under the new tax laws, which would be operational from January, 2026, people earning gross annual income of less than N1.3 million would be exempted from tax while middle level earners of between N1.3 million and N3 million would have their taxes reduced.
He further explained that higher gross annual income above N3 million, would attract higher taxes meaning that “Big men” and business organisations would pay more.
A Consultant with the KGIRS, Barrister Henry Ojuola in his remark, urged the House not bother with making new laws on the matter even though the Acts provides that they could enact or implement.
Barrister Ojuola, a former member of the Assembly however advised the Assembly and the Service to rely on the Acts in their implementation saying Chapter 5 of the Tax Administration Act has specified many offences as well as punishments for the Tax Tribunal to handle.
“Ensure your Tax Tribunal is effective by ensuring that “Unpurchaseable persons” are members. Ensure that the people you send to collect taxes are not dishonest Nigerians’, Legal Practitioner advised.
In his closing remarks, Chairman of the House standing Committee on Finance, Hon. Akus Lawal appreciate the KGIRS Chairman and his team for initiating the engagement.
The Lawmaker expressed optimism that in no time Kogi would be rated as the number three state among the 19 Northern states After Kano, Kaduna, Kogi State and number one in North-Central in terms of Internally Generated Revenue drive.
Hon. Lawal, representing Ankpa I Constituency, said the legislators were now better informed on the issue of revenue and tax administration in Nigeria and are looking forward to receiving the two tax laws to “do the needful”.
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Business and Economy
Ododo Unveils N820.49 Billion 2026 Draft Budget
From Joseph Amedu, Lokoja
Governor Ahmed Usman Ododo of Kogi statte has unveiled the 2026 draft budget, titled “Budget of Shared Prosperity,” totaling N820.49 billion. The announcement was made following a meeting of the State Executive Council in Lokoja.
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The budget represents a 35.7% increase over the 2025 revised budget, signaling the state government’s focus on sustainable growth, inclusive development, and enhanced service delivery.
Commissioner for Finance, Budget, and Economic Planning, Asiwaju Asiru Idris, briefed journalists after the council meeting, highlighting that the 2026 budget is designed to strengthen internal revenue, improve debt recovery, foster a business-friendly environment, and deepen public-private partnerships.
“The 2026 budget proposals reflect a robust and balanced financial strategy emphasizing enhanced revenue generation, strategic expenditure control, and a strong commitment to capital investment,” Idris said.
He added that the significant rise in both recurrent and capital expenditure underscores the government’s determination to expand infrastructure and improve public service delivery. The total estimated revenue and expenditure for the 2026 draft budget is N820,490,585,443, reflecting a fully balanced fiscal plan.
The meeting also addressed other critical issues, including access to clean water, road safety, and land administration reforms. Commissioner for Information and Communication, Kingsley Fanwo, noted that Governor Ododo directed all commissioners to sink three boreholes each in their respective local government areas and tasked the council with taking over land consent authority to curb fraudulent transactions.
The inclusive meeting, which included former commissioners, reflected Governor Ododo’s commitment to unity and collective progress. Former Commissioner Hon. Salisu Sani Ogu praised the governor’s leadership style, saying, “He has shown a desire to carry everyone along and build on the foundation laid since 2016.”
The 2026 draft budget aligns with the state government’s long-term goals of infrastructure expansion, improved public services, and economic diversification, aiming to create a more prosperous environment for Kogi residents.
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Business and Economy
Kogi Govt Opens Bids for Livestock Market Rehabilitation Project
From Joseph Amedu, Lokoja
The Kogi State Government has embarked on a major initiative to rehabilitate nine livestock markets across the three senatorial districts of the state.
The bid opening ceremony for the project took place over the weekend, at Kogi State Livestock Productivity and Resilience Support (Kogi L-PRES) Project office in Lokoja.
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The Project Coordinator, Mr Abdulkabir Onoruoyiza Otaru, highlighted the importance of the initiative and assured of a transparent process.
Otaru described the market rehabilitation project as a new dawn in Kogi State’s livestock value chain, and commended Gov. Ahmed Ododo for fully supporting the project.
He revealed that the World Bank had approved the project, with nine livestock markets to be rehabilitated in the first phase across the state’s nine Federal Constituencies.
“We’ve secured World Bank approval for the rehabilitation of one livestock market in each of Kogi State’s nine Federal Constituencies.
“We’ve engaged stakeholders to ensure a smooth bidding process and successful project execution.
“I urge the winning contractor to deliver high-quality work within the timeframe.
“Governor Ahmed Ododo’s support for L-PRES has been instrumental in improving livestock farmers’ livelihoods and the state’s economy,” Otaru said.
He emphasised that the rehabilitation of the nine livestock markets is expected to enhance livestock productivity and value chain in the state, improving the livelihoods of farmers and the economy,” Otaru said.
The Commissioner for Livestock Development, Dr Olufemi Bolarin, said the rehabilitation project aims to enhance the livestock sector, crucial to the state’s economy and food security.
“The modernisation of the markets will improve trading conditions, boost the livelihoods of farmers and traders, and create hygienic and efficient market spaces that meet international standards,” Bolarin said.
Represented by the Ministry’s Director of Livestock, Mr Ali Peter, the commissioner emphasised the need for a transparent and competitive bidding process.
The commissioner urged participants to adhere strictly to the guidelines.
The ministry’s Permanent Secretary,, Dr Abdulsalam Hadi, commended the governor for his commitment to transforming livestock development in the state.
He expressed confidence that the project would be a success, contributing significantly to the growth of the state.
The Kogi L-PRES Procurement Officer, Mr Adeolu Oshadare, disclosed that five companies submitted bidding documents with prices ranging from N1.22 billion to N2.12 billion.
According to him, the project bid was advertised on September 12, 2025, and five companies submitted bids by October 10, 2025.
According to him, the bid prices are: Nuelika Infinity Ltd (N1.54 billion), Izyprecs Ltd (N1.55 billion), Emmanuel-NIK and Gold Ltd (N1.47 billion), RSA Global Investment Ltd (N1.22 billion), and Numora Integrated Ltd (N2.12 billion).
Adeolu noted that the next stage would be the evaluation of bids by the evaluation committee within the next week.
In his remarks, Prof Usman Omeiza, Chairman of the Chartered Institute of Purchasing and Supply, Kogi State Branch, commended the Kogi State Livestock Ministry, L-PRES, and other stakeholders for ensuring a seamless and transparent bidding process.
He urged them to maintain this transparency throughout the project.
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