Nigeria’s FAAC distributed 1.7 trillion naira in January 2025 to all government tiers. Access Bank analysts foresee improved market liquidity due to this allocation, with declining yields on treasury bills. Insights were shared by Anthony Aigbokhan on CNBC Africa.
In January 2025, the Federal Account Allocation Committee (FAAC) apportioned a substantial 1.7 trillion naira across Nigeria’s three tiers of government, including the Federal Government, state governments, and local councils. This distribution reflects the ongoing efforts to ensure fiscal balance and support local governance through centralized revenue sharing.
Banking professionals at Access Bank have expressed positive outlooks regarding the impact of this FAAC allocation. They anticipate that the increased liquidity resulting from this funding will enhance the treasury bills market, particularly as yields are presently on a declining trend. Anthony Aigbokhan, a member of the Treasury Team at Access Bank, shared these insights during a segment with CNBC Africa.
The FAAC allocation indicates a significant financial inflow that is expected to undergird economic activities at various governance levels. By distributing funds to the different tiers of government, there is a strategic aim to bolster economic growth and provide essential services to citizens, thereby enhancing public welfare.
In summary, Nigeria’s FAAC has disseminated 1.7 trillion naira for January 2025 across federal, state, and local governments. This financial injection is anticipated to foster liquidity in the treasury bills market amidst falling yields, suggesting an optimistic perspective from banking analysts. Such allocations are crucial for stimulating local economies and funding essential public services.
Original Source: www.cnbcafrica.com
