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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.

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The Naira recorded a massive appreciation against the United States dollar across official and parallel foreign exchange markets to end the week on an impressive note.

The Central Bank of Nigeria’s data showed that the Naira rose further on Friday to N1,386.55 per dollar, up from N1,396.99 was exchanged on Thursday.

This means that on a day-to-day basis the naira strengthened by N10.44 against the dollar.

Similarly, at the black market, the Naira gained N10 to close at N1,470 on Friday, up from N1,480 the previous day.

Further analysis showed that the Naira recorded a N35.08 and N20 gain against the dollar on a week-on-week basis at the official and Black markets, respectively.

Naira’s uptrend across FX markets comes as the country’s foreign reserves grew further to $46.18 million on January 29th, 2026, a significant rise from $46.01 billion traded last week Friday.

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A financial analyst, Kalu Aja, alleged that the Nigerian government intends to borrow N2 trillion monthly to finance what he described as a “wasteful” 2026 budget.

He disclosed this in a statement on X on Wednesday, noting that the N58.47 trillion 2026 budget is currently before the Nigerian Senate.

According to Aja, the budget focuses largely on solar streetlights, motorcycles, cash grants, and other wasteful expenditures.

“I literally read every page of the 2026 budget.

“It’s a wasted opportunity, again.

“Just like the 2025 budget, it’s all about solar streetlights, motorcycles, cash grants, and more wasteful spending.

“This is a nation where we are borrowing N2 trillion every single month, and you believe the best use of those borrowed funds is solar streetlights on bad roads?” he wrote on X.

Recall that President Bola Ahmed Tinubu in December last year presented a N58.47 trillion budget before a joint session of the National Assembly, with a projected budget deficit of N23.85 trillion against revenue of N34.3 trillion.