Business

Nigeria’s Budget 2022 And Debt Service Implication [ANALYSIS]

Published

4 years ago

November 9, 2021

Richard Asoge

In compliance with the section 81 of the 1999 Nigeria Constitution as amended, the President of Federal Republic of Nigeria, Muhammadu Buhari, on October 7, 2021 laid before the National Assembly 2022 budget estimate for the country. Bringing it about three months before the implementation begins creates room for thorough dissecting and as well inviting all critical stakeholders which include ministries, departments and agencies on their take.

The year 2022 drafted budget is N16.39 trillion. Recurrent expenditure without debt service and capital expenditure is respectively to gulp N6.83 trillion and N4.89 trillion. Furthermore, debt service is to take a chunk of N3.9 trillion while statutory transfer is to take the sum of N768.28 billion. Breaking it down to a common man language, of every one hundred naira the country intends to spend in the coming year, about N24 goes on debt services to various organizations, institutions or countries which in the time past, Nigeria had obtained loans. As at August 2021, the records of Debt Management Office showed that Nigeria owed about N35 trillion to internal and external bodies. The country is enmeshed in debt. As if the damage was not enough, we are still asking for more loans like ‘Oliver Twist’. Of course, there is nothing wrong in obtaining a loan to finance a project if it is viable enough in the medium or long term to generate fund to pay the principal with the interest, or such project is capable of improving the living standard of the people. If the latter is the case, tax can be introduced to recoup the investment made on the project. Both debt service and direct statutory transfer are priority for settlement. The more the allocation for these headings in the given sum, the lower the fund available for developmental projects and other government financial responsibilities. It is time for us to think out of the box rather than go for loan or aid at every slight opportunity.

Considering the expected income in the year mainly from oil receipt, VAT and other sources, the total proposed expenditure is far more than that of income which gives room for about N6.26 trillion deficits. In other words, the country is expected to generate N10.21 trillion from various sources of income and borrow the balance. Of this shortfall, N5 trillion is expected to be sourced domestically, N1.2 trillion is to come via drawings from bilateral and multilateral loans while over N90 billion expected from the proceeds of privatization.

Oil receipt which is the largest source of income is benchmarked at $57 per barrel with 1.88 million barrel per day at official exchange rate of $410.15. The parameter used here is good and is more of the conservative side. Past records showed that Nigeria produced over 2 million barrel per day. If all things being equal, the figure will be attained easily and beyond. After a worldwide decline in the spate of COVID-19 spread, global oil market has rebounded and still rebounding. This manifested in the current oil price hovering between $80 and $84 per barrel in the international market. This implies that excess is expected from this sub-heading of the budget.

In the 2022 proposed budget, inflation is anchored within the threshold of 13%. This is a dream taken too far. The present situation of things in Nigeria does not indicate serious crashing in the prices of goods and services from the currently 18% to average of 13% in the coming year. If the statement credited to the Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, while given comprehensive analysis of the said budget that subsidy will be removed from fuel and electricity by the mid next year is enforced, then inflation will go far beyond the estimate of 13%. However, if all necessary supports were given to the local refineries (the existing government refineries and the upcoming private refineries) to operate to a reasonable capacity, removal of subsidy will not have substantial effects on the prices of goods and services but save already declined foreign exchange from going down deeper.

The beauty of any budget lies in its implementation or performance. Evidence from past years showed that revenue performance was always low to the expectation. This made implementation difficult. For instance, in year 2020, the proposed revenue was N5.37 trillion while the actual revenue attained for the year was N3.42 trillion. This was a variance of 36.3%. You may say COVID-19 caused. To me, that is not a strong defence. There had been similar trends over the years. In 2018 when there was nothing like COVID-19, projected revenue was N7.12 trillion while the actual revenue attained was N3.48 trillion given a variance of 51.1%. Justification of various spending and cutting down on the allowances and benefits of the political office holders will close the gap between the proposed expenditure and revenue.

It is very clear that development of any nation is proportional to the financial and other commitments made to research and development. Commitment and funding of research institutions in various areas of human endeavor give a nation an insight of what the future holds and makes preparation for it. This is the magic wand of the developed economies in the world.

Richard Asoge
Clappahouse Analytics
chards001@gmail.com
O8081492614.

Business

Full List: 82 Newly Approved, Fully Licensed BDC Operators

Published

3 days ago

December 9, 2025

Editor

The Central Bank of Nigeria (CBN) has granted final operating licences to 82 Bureaux De Change (BDC) operators under its revised regulatory framework, reinforcing warnings against transactions with unlicensed foreign exchange dealers.

In a statement on Monday, the Acting Director of Corporate Communications, Hakama Sidi-Ali, confirmed that the licences took effect on November 27, 2025, in accordance with the 2024 Regulatory and Supervisory Guidelines for BDC Operations. The guidelines require all operators to meet specified capital thresholds and regulatory conditions to qualify for licensing.

“The Central Bank of Nigeria, in exercise of its powers under the Banks and Other Financial Institutions Act (BOFIA) 2020 and the 2024 Guidelines, has granted final licences to 82 Bureaux De Change to operate with effect from November 27, 2025,” the statement read.

The apex bank emphasised that only BDCs listed on its official website are considered fully licensed, urging the public to verify the status of any operator before engaging in foreign exchange transactions.

“While the CBN will continue to update the list of Bureaux De Change with valid operating licences for public verification on our website, the Bank advises the general public to avoid dealing with unlicensed Foreign Exchange Operators,” the statement warned.

The CBN noted that operating a BDC without a valid licence constitutes an offence under Section 57(1) of the BOFIA 2020, and confirmed that legal action would be taken against non-compliant operators.

TIER 1

1 DULA GLOBAL BDC LTD

2 TRURATE GLOBAL BDC LTD

TIER 2

1 ABBUFX BDC LTD

2 ACHA GLOBAL BDC LTD

3 ARCTANGENT SWIFT BDC LTD

4 ASCENDANT BDC LTD

5 BARACAI BDC LTD

6 BERGPOINT BDC LTD

7 BRAVO MODEL BDC LTD

8 BRIMESTONE BDC LTD

9 BROWNSTON BDC LTD

10 BUZZWALLET BDC LTD

11 CASHCODE BDC LTD

12 CHATTERED BDC LTD

13 CHRONICLES BDC LTD

14 COOL FOREX BDC LTD

15 CORPORATE EXCHANGE BDC LTD

16 COURTESY CURRENCY BDC LTD

17 DANYARO BDC LTD

18 DASHAD BDC LTD

19 DEVAL BDC LTD

20 DFS BDC LTD

21 EASY CASH BDC LTD

22 ELELEM BDC LTD

23 E-LIOYDS BDC LTD

24 ELOGOZ BDC LTD

25 ENOUF BDC LTD

26 EVER JOJ GOLD BDC LTD

27 EXCEL RIJIYA FOREX BDC LTD

28 FABFOREX BDC LTD

29 FELLOM BDC LTD

30 FINE BDC LTD

31 FOMAT BDC LTD

32 GENELO BDC LTD

33 GENTLE BREEZE BDC LTD

34 GRACEFUL GLORY AND HUMILITY BDC LTD

35 GREENGATE BDC LTD

36 GREENVAULT BDC LTD

37 HAZON CAPITAL BDC LTD

38 HIGH-POINT BDC LTD

39 I & I EXCHANGE BDC LTD

40 IBN MARYAM BDC LTD

41 JOURNEY WELL BDC LTD

42 KEEPERS BDC LTD

43 KHADHOUSE SOLUTIONS BDC LTD

44 KIMMELFX BDC LTD

45 KINGSOFT ATLANTIC BDC LTD

46 M.S. ALHERI BDC LTD

47 MASTERS BDC LTD

48 MCMENA BDC LTD

49 MKOO BDC LTD

50 MKS BDC LTD

51 MR J GOLF BDC LTD

52 MUSDIQ BDC LTD

53 MZ FOREX BDC LTD

54 NEJJ BDC LTD LTD

55 NETVALUE BDC LTD

56 NEW WAVE BDC LTD

57 NOTABLE AND KINGSTON BDC LTD

58 PILCROW BDC LTD

59 RAPID BDC LTD

60 RIGHTWAY BDC LTD

61 RWANDA BDC LTD

62 SABLES BDC LTD

63 SAFETRANZ BDC LTD

64 SAMFIK BDC LTD

65 SEVENLOCKS BDC LTD

66 SHAPEARL BDC LTD

67 SIMTEX BDC LTD

68 SOLID WHITE BDC LTD

69 ST. NICHOLAS GLOBAL BDC LTD

70 TOPFIRST UNIQUE MULTICHOICE BDC LTD

71 TOPGATE BDC LTD

72 TRAVELLER’S CHOICE BDC LTD

73 TUCA GLOBAL BDC LTD

74 TURBOVA BDC LTD

75 TURN-UP BDC LTD

76 UNIGO BDC LTD

77 VICTORY AHEAD BDC LTD

78 WHITEWAY WWW BDC LTD

79 YUND GLOBAL LINK BDC LTD

80 ZAMAD FOREX BDC LTD

Business

CBN Issues 82 New BDC Licences, Moves To Curb Unregistered FX Operators

Published

3 days ago

December 9, 2025

Editor

The Central Bank of Nigeria (CBN) has granted final operating licences to 82 Bureaux De Change (BDC) under its updated regulatory framework and cautioned members of the public against engaging with unlicensed foreign exchange operators.

In a statement issued on Monday and signed by the Acting Director of Corporate Communications, Hakama Sidi-Ali, the Bank said the licences became effective on 27 November 2025. The approvals were granted under the 2024 Regulatory and Supervisory Guidelines for BDC Operations in Nigeria.

The CBN stressed that only BDCs listed on its official website are recognised as licensed operators. It encouraged the public to verify the licensing status of BDCs before engaging in any foreign exchange transactions.

The Bank reiterated that running a BDC without proper authorisation constitutes an offence under Section 57(1) of the BOFIA 2020. It stated that enforcement actions would be taken against violators.

The licensing exercise forms part of the CBN’s broader initiative to reform the foreign exchange market and ensure that only compliant operators participate in the sector. Under the 2024 guidelines, which took effect in June 2024,
all BDCs are required to reapply for Tier 1 or Tier 2 licences.

The guidelines stipulate minimum capital requirements of ₦2 billion for Tier 1 and ₦500 million for Tier 2, along with non-refundable licensing fees of ₦5 million and ₦2 million, respectively.

The CBN said it would continue its efforts to maintain order and transparency in the foreign exchange market.

Business

JUST IN: CBN Removes Cash Deposit Limits, Raises Weekly Withdrawal To N500,000

Published

1 week ago

December 3, 2025

Editor

The Central Bank of Nigeria (CBN) has removed cash deposit limits and also increased the weekly cash withdrawal limit from N100,000 to N500,000.

The CBN made this known in a circular to all banks and other financial institutions, signed by Dr Rita Sike, Director, Financial Policy and Regulation Department.

Sike said that the revisions formed part of ongoing efforts to moderate the rising cost of cash management and address security concerns.

According to her, it will also curb money laundering risks associated with heavy reliance on cash.

She said that the cash-related policies previously issued in response to evolving circumstances were aimed at reducing cash usage and promoting the adoption of electronic payment channels.

“However, with time, the need to streamline and update these provisions to reflect present-day realities became necessary,” she said.

She said that with effect from Jan. 1, 2026, the cumulative deposit limit would be removed and the fee previously charged on excess deposits would no longer apply.

The director said that the cumulative weekly withdrawal limit across all channels has been reviewed to N500,000 for individuals and five million Naira for corporates.

“Withdrawals above these thresholds will attract excess withdrawal charges as specified,” she said. “The special monthly authorisation that allowed individuals to withdraw five million Naira and corporates N10 million once a month has been abolished.”

She said that for Automated Teller Machines (ATMs), daily withdrawal remains capped at N100,000 per customer, with a maximum of N500,000 weekly.

She said that this formed part of the overall weekly withdrawal limit applicable to all channels, including point-of-sale (POS) transactions.

Sike said that excess withdrawals above the stipulated limits would attract three per cent for individuals and five per cent for corporate customers.

According to her, this will be shared in the ratio of 40 per cent to the CBN and 60 per cent to the operating bank or financial institution.

She directed banks to load all currency denominations in ATMs, while the existing limit on over-the-counter encashment of third-party cheques remains pegged at N100,000.

Sike said that such withdrawals would be counted as part of the cumulative weekly limit.

The director said that banks were also required to render monthly returns to the relevant supervisory departments.

She listed the departments to include the Banking Supervision Department, Other Financial Institutions Supervision Department, and the Payments System Supervision Department.

Sike said that revenue-generating accounts of federal, state, and local governments were exempted from the new withdrawal rules.

She said that accounts of microfinance banks and primary mortgage banks held with commercial and non-interest banks are also exempted from the new rules.

She, however, said that the long-standing exemption previously enjoyed by embassies, diplomatic missions, and aid-donor agencies had been removed.