Economy
FG to councils: ‘No bank loans without clearance’
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The federal government has warned state and local governments across the country not to take loans from banks or other financial institutions without first getting a Certificate of Proof of Compliance from the Fiscal Responsibility Commission.
It said such borrowing is against the law and can attract serious legal action.
This warning was directed especially at the 23 local government chairmen in Kaduna State by the Director of Legal Services, Investigation and Enforcement at the Commission, Barrister Charles Chukwuemeka Abana, who spoke at a financial management workshop in Kaduna.
A statement from the Commission, signed by its Director of Strategic Communication, Bede Ogueri Anyanwu, said Abana represented the Executive Chairman of the Fiscal Responsibility Commission, Victor Muruako, at the event organised by the Kaduna State Fiscal Responsibility Commission.
Abana told the council chairmen that under the Fiscal Responsibility Act of 2007, governments are only allowed to borrow for projects that build long-term value, such as infrastructure and human development, and not for everyday running costs.
He warned that any bank or financial institution that gives loans outside the law is also breaking the rules, while public officers who ignore the law could face serious consequences.
He strongly criticised the practice of spending public money without approval in the budget, calling it “fiscal haram,” and said such actions damage public trust and slow down development.
“Every kobo spent must have value for money. Public resources must be planned, budgeted for, properly appropriated, and disbursed towards the execution of projects that positively impact the lives of the people,” Abana said.
He cautioned local government leaders against giving out public funds to friends, supporters, or political loyalists, and against adding names of people who are not properly employed to their payrolls.
According to him, all spending must follow what has been approved in the budget and must be tied to real work and real benefits for the people.
Abana urged council chairmen to run open and transparent administrations, manage funds carefully, and think about how their decisions today will affect future generations.
He said the Commission is ready to offer technical support to help local governments put proper fiscal responsibility laws in place at the council level to build a strong and disciplined financial system.
He also praised the Governor of Kaduna State, Senator Uba Sani, for supporting reforms that promote transparency and accountability, saying this has helped institutions like the Kaduna State Fiscal Responsibility Commission to work better.
In his speech to open the workshop, Governor Sani condemned the misuse and theft of public funds and called on all elected officials and political appointees to act with honesty and openness in carrying out their duties.
He said his administration remains committed to reforms, financial discipline, and responsible leadership, adding that the trust of the people can only be earned when public money is managed properly and used for their benefit.
Earlier, the Executive Chairman of the Kaduna State Fiscal Responsibility Commission, Sani Rabiu Bako, described the workshop as an important step towards improving how public funds are managed at the local level.
He welcomed the support of agencies such as the Code of Conduct Bureau, the Economic and Financial Crimes Commission, the Bureau of Public Procurement, and the Centre for Fiscal Transparency and Public Integrity.
Bako said the programme aimed to teach public officers and financial managers the importance of getting value for money, being open in their dealings, and staying accountable, especially at the grassroots, where government services directly touch the lives of citizens.
He added that strong public financial management is key to lasting development, leading to better roads, cleaner communities, improved schools, and overall economic growth.
He noted that other agencies at the workshop presented papers on ethical leadership, proper procurement, and fighting corruption, all geared towards ensuring that public funds are used wisely at every level of government.
The Naira yesterday appreciated to N1,387 per dollar from N1,390 in the parallel market on Monday.
Similarly, the naira appreciated to N1,322.9 per dollar in the Nigerian Foreign Exchange Market, NFEM.
Data from the Central Bank of Nigeria, CBN, showed that the indicative exchange rate for the naira fell to N1,322.9 per dollar from N1,320 per dollar on Monday, indicating N2.9 appreciation for the local currency.
Consequently, the margin between the parallel and official markets narrowed to N64.1 per dollar from N70 per dollar on Monday. The value of interbank turnover in NFEM declined by 48.07 percent to $55.6 million from $107.07 million on Monday.
The Central Bank of Nigeria (CBN) has announced that it will be paying closer attention to how banks and other financial institutions in the country are being used, or misused, to move money that could fund terrorism.
In a statement signed by Hakama Sidi-Ali, Acting Director of the apex bank’s Corporate Communications and Investor Relations Department on Tuesday, the CBN said it has made terrorism financing supervision one of its current priorities. According to the statement, this is part of the bank’s “ongoing commitment to protecting the Nigerian financial system from abuse by illicit actors.”
What this means in plain terms is that the CBN will be looking more closely at how banks identify and manage the risk of their platforms being used to fund terrorism, how well they monitor suspicious transactions linked to terrorism financing, how they carry out sanctions ordered against specific individuals or groups, and how promptly they report suspicious activity connected to terrorism financing.
The statement explained that this new push covers four broad areas: how financial institutions manage terrorism financing risk, how they monitor transactions for signs of terrorism financing, how they carry out targeted financial sanctions, and how they report suspicious transactions linked to terrorism.
The apex bank said it will not be sitting back and waiting for problems to surface on their own. Instead, it plans to use a risk-based approach, which means banks and institutions seen as more exposed to this kind of risk will attract closer attention.
This will involve both on-site inspections, where CBN officials visit institutions directly, and off-site checks, where the bank reviews reports and data from a distance.
The goal, the statement said, is to support “effective Anti-Money Laundering, Countering the Financing of Terrorism and Countering Proliferation Financing (AML/CFT/CPF) controls across the financial sector,” referring to the fight against money laundering, terrorism financing, and the financing of weapons proliferation, all of which are governed by existing Nigerian laws and regulations.
The CBN also linked this move to Nigeria’s wider efforts, both at home and internationally, to fight terrorism financing and the financing of weapons proliferation, and to protect the integrity of the country’s financial system.
The apex Bank did not name any specific institution under investigation or give a timeline for these actions, but noted that “further supervisory engagement will be undertaken as appropriate,” suggesting that more steps could follow depending on what its checks turn up.
For the ordinary Nigerian, the announcement signals that the CBN wants banks to be more careful and more accountable in how they track the movement of money through the financial system, particularly where there is any possible link to terrorism or the funding of violent groups.
It is also a reminder that financial institutions operating in Nigeria are expected to follow strict rules designed to keep the banking system safe from being used for illegal purposes.
The Federal Government has approved a new pensionable salary structure for personnel of the Nigerian Armed Forces.
The new structure affects personnel in the Nigerian Army, Nigerian Navy and Nigerian Air Force and took effect from September 1, 2026.
The approval was contained in a circular issued on September 3 by the National Salaries, Incomes and Wages Commission.
Under the new arrangement, Generals, Admirals and Air Chief Marshals occupy the highest level, with their annual pensionable salaries ranging from ₦21.9 million to ₦29.75 million, depending on their salary steps.
The highest figure works out to roughly ₦2.48 million per month when divided by 12.
Lieutenant Generals, Vice Admirals and Air Marshals will have annual pensionable salaries between ₦16.99 million and ₦25.91 million.
Major Generals, Rear Admirals and Air Vice Marshals will receive pensionable salaries ranging from about ₦14.98 million to ₦23.9 million annually.
For Brigadier Generals, Commodores and Air Commodores, the approved annual pensionable figures range from ₦13.86 million to ₦16.39 million.
Colonels, Captains and Group Captains will have annual pensionable salaries between ₦8.31 million and ₦9.49 million, while Lieutenant Colonels, Commanders and Wing Commanders will fall between ₦7.55 million and ₦8.74 million.
Majors, Lieutenant Commanders and Squadron Leaders will have pensionable salaries ranging from ₦5.99 million to ₦7.01 million annually.
Captains, Lieutenants and Flight Lieutenants will receive between ₦5.28 million and ₦6.42 million.
At the junior officer level, Second Lieutenants, Midshipmen and Pilot Officers will have annual pensionable salaries ranging from ₦4.92 million to ₦5.59 million.
The new structure also covers non-commissioned personnel.
Warrant Officers across the three services will have annual pensionable salaries between ₦4.53 million and ₦5.17 million, while Master Warrant Officers will receive between ₦3.94 million and ₦4.93 million.
Warrant Officers will have annual pensionable salaries ranging from ₦3.46 million to ₦4.35 million. Staff Sergeants, Petty Officers and Flight Sergeants will have figures between ₦2.98 million and ₦3.76 million.
Sergeants and Leading Seamen will have annual pensionable salaries ranging from ₦2.81 million to ₦3.16 million, while Corporals and Able Seamen will receive between ₦2.48 million and ₦2.73 million.
Lance Corporals and Seamen will have pensionable salaries between ₦2.32 million and ₦2.58 million annually.
Privates, Ordinary Seamen and Aircraftmen will have figures ranging from ₦2.28 million to ₦2.49 million.
The government clarified that the amounts contained in the new schedule are meant for calculating pension benefits.
They should not be treated as the actual monthly salaries or take-home pay of serving military personnel.
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