Nigeria’s drive to address its infrastructure deficit and improve logistics efficiency took a significant step forward at the World Economic Forum (WEF) 2025 in Davos, Switzerland.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, met with Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, to discuss transformative infrastructure investment opportunities.
Director of Information and Public Relations, Mohammed Manga, in a statement said the discussions focused on leveraging DP World’s expertise to alleviate Nigeria’s logistics challenges and unlock the country’s economic potential.

Speaking after the meeting, Edun underscored the importance of private sector collaboration in driving Nigeria’s development agenda.
“Our engagement with DP World reflects Nigeria’s commitment to creating a robust infrastructure framework that facilitates trade, improves logistics, and attracts foreign investment,” he said.

Sultan Bin Sulayem expressed DP World’s readiness to support Nigeria’s economic ambitions. “Nigeria is a key player in Africa, and we are committed to bringing our global experience in logistics and infrastructure to help the country achieve its development goals,” he remarked.

The partnership, if finalized, could lead to transformative projects aimed at enhancing Nigeria’s trade efficiency and boosting its global competitiveness.
Experts believe that such collaborations will significantly contribute to diversifying Nigeria’s economy and driving long-term growth.

The Federal Ministry of Finance has reiterated its commitment to driving Nigeria’s development priorities through strategic resource allocation and prudent financial management.
This was disclosed during the ministry’s 2025 budget defence before the House of Representatives Committee on Finance in Abuja.

The Minister of State for Finance, Dr. Doris Uzoka-Anite, who represented the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasized that the 2025 budget aligns with the nation’s priorities.
She highlighted key focus areas, including economic growth, infrastructure development, and sustainable fiscal practices.

Uzoka-Anite assured that the budget was designed to support the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration. “We are committed to fostering a stable, resilient, and thriving economy to improve the lives of millions of Nigerians,” she stated.

Accompanied by the Permanent Secretary of the ministry, Mrs. Lydia Shehu Jafiya, and key directors, Uzoka-Anite presented the proposed budget, emphasizing its role in achieving the government’s policy objectives.

Mrs. Jafiya provided a performance overview of the 2024 budget, noting that most of it was utilized for overheads, personnel expenses, and limited capital projects. She explained that the 2025 proposal included provisions for critical upgrades to the ministry’s headquarters to enhance operational efficiency and service delivery.

The Chairman of the House Committee on Finance, Honourable James Faleke, lauded the ministry’s presentation and assured that the committee would thoroughly review the proposal. He acknowledged the ministry’s vital role in ensuring fiscal stability and sustainable development.

The session concluded with a commitment from all stakeholders to ensure that the 2025 budget effectively supports Nigeria’s economic priorities and fosters greater prosperity for citizens.

In a bid to foster economic stability, the Federation Account Allocation Committee (FAAC) has allocated N1.424tr to Nigeria’s three tiers of government for December 2024.
While the disbursement promises fiscal relief, a deeper look reveals that not all sectors of the economy are seeing the same benefits.

The N1.424 trillion, drawn from a gross total of N2.310 trillion, was divided among the Federal Government, State Governments, Local Government Councils (LGCs), and Oil Producing States.
The Federal Government received N451.193b, while States garnered N498.498b, and LGCs were allocated N361.754b.
The Oil Producing States also benefited, with N113.477b for Derivation, representing 13% of mineral revenue.

A standout in the disbursement was the N649.561b allocated from Value Added Tax (VAT) collections, reflecting a steady increase from the previous month’s N628.973b.
This growth in VAT revenues signals improving consumer spending, but with a catch.
Despite the VAT increase, there was a notable dip in Gross Statutory Revenue, which fell by N6.988b from the previous month.
This shortfall is a cause for concern, especially given the growing demands for infrastructure and social services.

One of the key areas that saw a significant boost was the Electronic Money Transfer Levy (EMTL), with N31.211b being shared across the tiers of government.
This revenue source, however, highlights the growing reliance on electronic transactions and could signal future policy shifts toward digital finance.

Furthermore, the N402.714 billion allocated from Exchange Difference paints a picture of fluctuating exchange rates, an area that continues to exert pressure on Nigeria’s fiscal landscape.
While the increase in EMTL and VAT collections is promising, the continued decline in traditional revenue streams like Oil and Gas royalties and Corporate Income Tax (CIT) serves as a reminder of the vulnerabilities Nigeria faces in its over-reliance on oil.
Despite these challenges, the FAAC distribution is a critical lifeline for the country’s governance, particularly for the States and Local Government Councils, which rely heavily on federal allocations to fund infrastructure and social programs.
However, as the allocations continue to rise, the question remains: How can Nigeria ensure long-term fiscal sustainability in the face of dwindling oil revenues and global economic uncertainties?

While the N1.424 trillion allocation offers short-term relief, Nigeria’s policymakers must act swiftly to diversify the economy and reduce dependency on oil to ensure a stable future for all three tiers of government.