In January 2025, Nigeria shared 1.7 trillion naira from the Federation Account among the Federal, State, and Local governments. This distribution is expected to increase treasury bill market liquidity, as yields decline. Anthony Aigbokhan from Access Bank discussed these developments on CNBC Africa.
In January 2025, Nigeria’s three tiers of government—the Federal, State, and Local governments—distributed a total of 1.7 trillion naira from the Federation Account. This allocation represents significant revenue sharing and directly impacts the financial activities of these governmental levels. Access Bank traders anticipate that this FAAC allocation will enhance liquidity in the treasury bill sector, particularly as the current yields are on a downward trend. During a discussion on CNBC Africa, Anthony Aigbokhan from Access Bank’s Treasury Team highlighted these insights, emphasizing the broader implications for market dynamics.
The distribution of 1.7 trillion naira by Nigeria’s FAAC in January 2025 underscores the importance of federal revenue sharing among governmental tiers. Enhanced liquidity in the treasury bills market is anticipated, potentially due to the allocation, as traders navigate the declining yield situation. Conversations with financial experts, such as those from Access Bank, continue to shed light on these economic developments.
Original Source: www.cnbcafrica.com
