In January 2025, Nigeria’s Federal, state, and Local Government councils shared 1.7 trillion naira from the Federation Account. Analysts at Access Bank predict that this allocation will improve liquidity in the treasury bills market as yields decline. Anthony Aigbokhan from Access Bank discussed these implications on CNBC Africa.
In January 2025, Nigeria’s three tiers of government, comprising the Federal, state, and Local Government councils, collectively distributed a noteworthy sum of 1.7 trillion naira in revenue sourced from the Federation Account. This allocation is expected to have significant effects on the nation’s financial landscape, particularly regarding liquidity levels.
Market analysts at Access Bank have projected that this increase in Federal Account Allocation Committee (FAAC) funds will enhance the liquidity in the treasury bills market, especially as yields experience a notable decline. Key discussions surrounding this topic include insights from Anthony Aigbokhan, a member of the Treasury Team at Access Bank, who provided detailed analysis on the implications of this fund distribution.
Such financial movements are instrumental in informing investment strategies and public finance management. The injection of funds from FAAC into the market has the potential to affect various economic indicators, including treasury yield rates and overall market stability. Stakeholders are advised to observe these trends closely as they develop over the coming months.
The allocation of 1.7 trillion naira by Nigeria’s FAAC signifies a critical financial adjustment for January 2025, impacting liquidity in the treasury bills market. Analysts anticipate that this increase may help stabilize declining yield rates, thus drawing attention to the potential for enhanced economic growth. The insights provided by experts like Anthony Aigbokhan underline the importance of these funds in shaping Nigeria’s financial environment.
Original Source: www.cnbcafrica.com
