FG moves public funds to CBN for full supervision

From Adanna Nnamani, Abuja

The Federal Government has moved to ensure full transparency and accountability in public finance management by bringing all government funds under the supervision of the Central Bank of Nigeria (CBN).

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this at the ongoing 31st Nigerian Economic Summit (NES) in Abuja.

Edun said the government only gained complete visibility of its accounts with the CBN on August 1, 2025, marking a major milestone in the administration’s fiscal reform drive.

He said the initiative forms part of wide-ranging fiscal measures aimed at strengthening accountability, improving efficiency, and ensuring that every naira of public revenue is properly tracked.

According to him, the government has also introduced a new federal billing system to monitor payments for goods and services, ensuring that all transactions are traceable and accurately recorded.

Edun explained that the reforms go beyond transparency to include measures that have significantly boosted revenues accruing to all tiers of government.

He revealed that allocations to states have increased by over 111 percent following the removal of petrol subsidy and the unification of exchange rates.

The minister said the exchange rate unification and subsidy removal represent two of the most significant reforms undertaken by the Tinubu administration, freeing up about five percent of Nigeria’s Gross Domestic Product (GDP) into the federation account.

Edun disclosed that the Federal Government had also reached an understanding with the National Assembly to restore discipline to the fiscal calendar and ensure timely budget execution.

He added that consistent and disciplined budget implementation remains vital to transparency, better project delivery, and credible public expenditure tracking.

On debt management, Edun said the government is adopting a new borrowing mix to reduce exposure to Eurobonds and other external loans.

He said the government would now place greater emphasis on Sukuk, green bonds, and diaspora bonds, noting that the strategy will expand domestic investment participation while aligning debt issuance with Nigeria’s sustainable development goals.

Edun further noted that the government’s interventions on inflation began with deliberate fiscal policy adjustments and smarter spending priorities, aimed at stabilising the economy and easing pressure on households.

“We are determined to bring all federal government funds into visibility. There is a lot of government money lying outside the CBN.

“States are now awash with cash, and additional funds are to empower states to drive growth and service delivery at the sub-national level.

“No more extensions of the budget into the next year, which has created so much confusion in the system. We have talked to the National Assembly and agreed to restore normalcy in that space.

“The government will make greater use of Sukuk, green bonds, and diaspora bonds instead of Eurobonds,” he stated.