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Bailout: FG Deducts N8.75bn From States Allocation
By Mathew Dadiya, Abuja
The Federal Government has revealed that it has deducted a total of N8,750,000,000 from 35 states of the federation as part of the N614 billion National Budget Support Loan Facility given to states in 2016 to offset salary areas owed to workers.
Minister of Finance, Mrs.
Zainab Ahmed disclosed this while briefing State House Correspondents after the National Economic Council Meeting Chaired by Vice President Yemi Osinbajo yesterday at the Presidential Villa, Abuja.The minister said that the deduction was made at source from statutory allocations to the various States by the Federation Accounts Allocation Committee (FAAC) meeting held September, adding that another deduction would be made in this October.
Daily Asset recalls that the fund was a conditional budget support provided by the CBN at 9% with a grace period of two years; while the Federal Ministry of Finance disbursed with documented approval by the presidency to help states pay salaries, gratuities and pensions.
Mrs. Ahmed spoke alongside Anambra State Governor, Willy Obiano, Ogun State Governor, Dapo Abiodun, Nasarawa State Governor, Abdullahi Sule, and Minister of Health, Osagie Ehanire.
According to her, the Federal Government has made the first and second months, N252 million monthly deductions, in September and October, based on the twenty years repayment period.
Following the outcry of state governors, another repayment schedule plan extending the year to thirty years and monthly repayment of N162 million was presented to NEC on Tuesday, she added.
However, the minister said that the state governors were still not satisfied with the repayment extension to thirty years.
She said “The budget support facility was initially for twenty years repayment period. And when we made the first deduction in September, the states had complained that the amount deducted, which was N252 million, was too harsh.
“So, since then, the Central Bank of Nigeria, who is the lender, has revised the condition to make the repayment period longer. And so the new repayment period is thirty years. And this means that the states will be paying monthly N162 million. But again today, the states still were not satisfied with the condition.
“So, we are expecting that the Federal Ministry of Finance, Budget and National Planning, CBN and the states will engage again with the view of having the CBN further revise the condition to reduce the monthly repayment burden”, she stated
“The budget support facility was initially for a repayment period of 20 years; when we made the first deduction in September, the states had complained that the amount deducted which was N252 million was too high.
“Since then the CBN which is the lender had revised the conditions to make the payment longer; so, the new repayment period is 30 years.
“This means that states will be paying monthly, N162 million but again today, the states still were not satisfied with the conditions. We are expecting that the Federal Ministry of Finance, Budget and National Planning will engage again with a view to having the CBN further revise the conditions to reduce the monthly repayment burden.”
Meanwhile, state governors yesterday rejected the proposed plan by the Federal Government to extend the repayment period of its budget support to state government from twenty years to thirty years.
Also speaking with State House Correspondents, Nasarawa State Governor, Abdullahi Sule, said the condition for the repayment of the facility was not friendly.
He also said that the Federal Government cannot dictate time state government the morality for the implementation of the new national minimum wage arguing that each state has its peculiarity.
He said that the Governors Forum had agreed that each state will implement the minimum wage law according to its ability especially the issue of consequential adjustment.
The governor said: “On readiness of the state governors
Just yesterday at the Nigeria Governors Forum meeting, it was presented by the chairman of the forum where we indicated that on the N30, 000 minimum wage and therefore all the state governors are willing to abide by that law. However, the various states will go back and sit down with the labour unions and agree on increment after the N30,000.
“So, the law is on the increment to N30,000 and I think none of the governors is contesting the N30,000 but it is thereafter that the governors are saying we are going to sit down; we are not going to abide by the template set by the Federal Government.
“Even the Minister of Labour has clearly stated that we are not under any direct instruction to follow; I think that one was well discussed.
“During the deliberations on matters arising, the governors commended Presidential Enabling Business Environment Council (PEBEC) for the recent improving of the ranking of Nigeria in the World Bank Ease of Doing Business ranking 2020.
“Members of the council congratulated the President, the Minister, members of the PEBEC team, the Vice president for this reforms and vigorous improvements that we have had so far.
“Also, the governor of Kaduna State presented a report on the ad hoc committee to the council; this committee was asked actually to review and reconcile the account between the states, local governments, and the Federal Government to see who is owing who.
It was decided that the report would be submitted to the Federal Government for response and then NEC will discuss the report thereafter.”
In a similar development, the Minister of Finance Zainab Ahmed has said that Academic Staff Union of University (ASUU) has no option other than to comply with the federal government’s directive on Integrated Personnel Payment Information System (IPPIS) because the governor would not rescind its decision.
She explained that the President Buhari directed that every agency of government; every staff must be on IPPIS “and my job is to comply with the president’s directive so that is what I do and we are going to do that.”
The minister said, “it is a pity if ASUU carries out this strike because what ASUU is saying now is that they should be treated differently from other staff of the government of Nigeria who are also on IPPIS; so, we will be engaging ASUU; we will be discussing with them; but at the end of the day, as far as I am concerned, my instruction is from the president.
Earlier.”
She also said that the ministry presented to National Economic Council the balances as that October 22 for the three special accounts: Excess Crude Account, the balance is $324.35 million; Stablisation Fund Account, N28.5 billion; Natural Resource Development Fund, N70.6 billion.
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Business News
DBN Signs $61m Credit Deal With AfDB, Unveils Support Initiative Report
By Tony Obiechina, Abuja
The Development Bank of Nigeria Plc (DBN) has launched DAWN: DBN Action for Women in Nigeria, unveiled its Impact Report and presented MSME Data Assets at the seventh edition of Annual Lecture held in Abuja.
DBN, in a statement on Thursday, said while delivering a welcome address, its Managing Director and Chief Executive Officer, Dr Tony Okpanachi, said the central challenge was no longer reforms themselves but ensuring benefits reach businesses at end of the chain.
He asked how to make sure benefits reach traders in Onitsha, fabricator in Aba, farmer in Kebbi and young founder in Yaba, noting that MSMEs accounted for about half of Nigeria’s GDP and more than eight in every ten jobs, adding that when reform works for MSMEs it works for most Nigerians.
He explained that reform becomes prosperity only when entrepreneurs can act on it whether through long tenor loans to buy equipment, banks willing to take risk or skills and records needed to grow.
He said working through Participating Financial Institutions DBN provides longer term funding, partial credit guarantees through subsidiary Impact Credit Guarantee Limited and capacity building including Entrepreneurship Training Programme.
He disclosed that as at December 2025 DBN had disbursed a cumulative N1.4 trillion to MSMEs through 84 Participating Financial Institutions creating about 1.6 million jobs nationwide.
Under the new five year strategy, the Bank aims to reach more than two million MSMEs with deliberate targets for women led businesses, youth led businesses and underserved states.
On DAWN, Okpanachi said finance alone had not enabled enough women-led businesses to scale.
He said initiative brings together financing, guarantees and credit support, technical assistance, outcome linked grants and market linkages delivered through banks, microfinance institutions, fintechs, aggregators, cooperatives and direct channels.
Its priority sectors are agriculture and exports, healthcare, arts and creatives, technology and green business.
He said DAWN is about moving gender focused lending beyond intention and turning access into opportunity.
On the sidelines of the lecture DBN and African Development Bank held a signing ceremony of AfDB DBN 61 million United States dollars Gender Line of Credit development that reinforces Bank commitment to women led enterprises.
Okpanachi urged Participating Financial Institutions to extend lending into sectors and states where access to finance has been limited, policymakers and regulators to measure reform by what changes for business at end of chain and MSMEs to formalise, keep good records and use support now available.
The Vice President as Special Guest of Honour was represented by Dr Fred Iklaga Senior Technical Adviser in the Office of Special Adviser to the President on Economy.
Keynote speakers were Chief Executive Officer of MTN Nigeria, Dr Karl Toriola, and Chairman of Nigeria Sovereign Investment Authority, Dr Segun Ogunsanya.
Fireside chat featured Chief Executive Officer of Sterling Bank Abubakar Suleiman, manufacturing and trade entrepreneur Mrs Omoyemi Chukwurah and by video Kola Masha of Babban Gona.
The Secretary to the Government of Federation, represented by Augusta Warren Bekaredebo, said 2026 tax reforms would bring relief to many small businesses expressing optimism that a lot of businesses will be smiling by next year because they will be exempted from tax.
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NLC Threatens Nationwide Action as Talks With FG Collapse
By Tambaya Julius, Abuja
The Nigeria Labour Congress (NLC) has threatened possible nationwide industrial action following the failure of talks with the Federal Government over workers’ welfare, petrol prices and other outstanding labour demands.
The warning came after a meeting between the government and organised labour at the Ministry of Labour in Abuja on Thursday, October 22, ended without an agreement.
The congress has given the Federal Government until Tuesday, October 27, to make meaningful progress on the issues, warning that its relevant organs would decide the next line of action if the next meeting fails to produce concrete commitments.
The NLC has also directed its affiliates, state councils and civil society allies to begin mobilising members for possible nationwide action.
In a statement issued after the meeting, the NLC Acting General Secretary, Benson Upah, expressed disappointment over what he described as the government delegation’s lack of preparedness for the negotiations.
According to the congress, organised labour presented its demands in good faith but left the meeting without any concrete commitments from the government.
The demands include a reduction in petrol prices to 2024 levels, renegotiation of the national minimum wage, implementation of agreed tax relief measures and resolution of the terms of settlement involving the Joint Health Sector Unions (JOHESU).
The congress also called for the resolution of issues raised by the Joint Public Service Negotiating Council (JPSNC) over peculiar allowances, wage awards and hazard allowances.
The NLC said the government delegation lacked the necessary authority to engage meaningfully on the issues presented by labour representatives.
“The meeting between the Federal Government and organised labour, convened at the Ministry of Labour in Abuja on 22nd October 2026, has ended without resolution,” the statement said.
It added that the Minister of Labour requested that the meeting be adjourned until October 27 to allow the government to prepare adequately for further discussions.
The preparations, according to the statement, would include bringing relevant ministers and heads of departments and agencies to the negotiating table.
The congress said it remained open to dialogue but would not accept continued delays in addressing workers’ concerns.
“We will report back to our organs, and if no meaningful progress is made on Tuesday, the relevant organs of the NLC will decide the next line of action,” it said.
The labour body urged workers and members of the public to remain calm while the negotiations continue, even as it directed its affiliates and allies to prepare for possible industrial action.
“However, we urge all affiliates of NLC and TUC; all state councils and our civil society allies to be alert and start mobilising for a possible action across the nation while we hope that the tenets of our demands are met by the government,” the statement added.
The October 27 meeting is expected to provide another opportunity for both sides to address the outstanding issues and prevent a possible escalation of the dispute.
However, the NLC’s decision to begin mobilisation suggests that tensions could rise if the next round of talks fails to produce meaningful progress.
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Election Campaigns: FRSC Bars Officers from Politicians’ Escort
The Federal Road Safety Corps (FRSC) has barred its personnel from escorting politicians during campaigns for the 2027 general elections.
Zonal Commanding Officer, RS6, ACM Abimbola Owolabi, gave the directive during her maiden visit to the Cross River Command in Calabar on Wednesday.
Owolabi said patrol vehicles and sirens must not be used for political activities or private engagements, including weddings and funeral processions.
She directed officers deployed to campaign venues to focus exclusively on traffic management to prevent congestion and road crashes.
The zonal head warned personnel against leading political convoys or providing escorts for politicians, stressing that official vehicles must not be used for unauthorised purposes.


