Business
Tight monetary policy threatens FG’s N720bn borrowing plan
The Federal Government’s plan to borrow about N720 billion through FGN bond auctions in the third quarter, Q3’22, has come under fresh threat following increasing investors’ appetite for higher yields triggered by the adoption of tight monetary policy of the Central Bank of Nigeria, CBN.
Recall that the CBN, in response to the five consecutive months rise in inflation rate to 18.6 per cent in June, launched a tight monetary policy regime May, 2022, raising the Monetary Policy Rate, MPR, first by 150 basis points to 13 per cent in May and again by 100 basis points to 14 per cent in July.
This development effectively spurred increases in money market yields while intensifying investors’ appetite for higher returns across all instruments in all segments of the market.
Consequently, the first under-subscription was recorded in FGN bond auction this year, as the auction held in July recorded 37 per cent under subscription and as a result, Debt Management Office, DMO could not achieve its sales target.
According to the FGN bond auction calendar for Q3’22 released by the Debt Management Office, DMO, the FG plans to raise between N630 billion and N720 billion during the quarter.
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The calendar shows that the FG, through the DMO, seeks to raise between N210 billion and N240 billion in each of the three months in the quarter, through subscription in three tranches of 10-year, 10-year, and 20-year original tenor respectively.
But the N225 billion FGN bond offered by the DMO at the July auction recorded 37 per cent under subscription as total subscription stood at N142 billion.
Though the 20-year bond, 13.00% FGN JAN 2042, recorded 40 over subscription, as subscription stood at for N104.92 as against N75 billion offered by the DMO, the 3-years 13.53% FGN MAR 2025 and 10-years 12.50% FGN APR 2032, recorded 84 per cent and 66 per cent under subscription respectively, as subscriptions stood at N11.75 billion and N25.62 billion respectively as against N75 billion offered for each bon tenor.
Consequently, the DMO could only achieve total sales of N123.9 billion, representing 45 per cent of its target for the month.
This was in spite of slight increases in the interest rates on the bonds offered by the DMO.
The auction results showed that the DMO raised the marginal rates for the 3-year, 10-year and 20-year bonds to 11.0 per cent from 10 per cent, 13.0 per cent from 12.5 per cent and 13.7 per cent from 13.2 per cent respectively in the June auction.
Analysts’ insight
Investment analysts however noted that for the DMO to attract investors to future auctions it would have to offer higher rates given the inflation rate of 18.6 per cent and MPR at 14 per cent.
While noting that in spite of the impact of scarcity of funds and increasing appetite triggered by the CBN’s tight monetary policy, on future bond auctions, they expect the DMO to meet its funding target of N3.53 trillion to finance the projected deficit of N7.35 trillion in the FGN’s 2022 budget.
Speaking in this regard, analysts at FBNQuest Securities, associated company in the First Bank Group, said: “The total amount raised by the DMO this year amounts to N1.7 trillion. If we include sales based on non-competitive allotment, the gross amount rises to N1.96 trillion. This excludes smaller sums raised via other instruments including Sukuk and the FGN savings bond.
“Despite the DMO’s disappointing outing, the sum raised so far by the agency suggests that it is broadly on track to raise its total domestic funding target of N3.5 trillion (including the additional borrowings of N965 billion following revisions to the budget).
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“However, the tight liquidity conditions in the market may continue to negatively affect demand at auctions in the near term.
“There are tougher credit conditions on the international market following monetary policy tightening by most central banks globally. This may force the FGN to turn to the domestic market to source some of the N2.6 trillion in external borrowing highlighted in the 2022 budget.
“The last resort would be for the fiscal deficit to become unfunded, or in other words, funded by ways and means advances from the CBN.
“Given the tight liquidity conditions in the market, we see yields inching up by around 25-50bps across the curve over the coming weeks.”
Similarly, analysts at United Capital Plc, associated company in the First Bank Group, said: “In line with our expectations of an uptick in the yield environment in the sovereign bonds market, marginal rates across all the tenors climbed 90bps, 50bps, and 60bps to print at 11.00%, 13.00% and 13.75%, respectively. Investors opted toward a more relaxed approach in the auction, demanding higher yields, as the expectation of inflation, interest rates, and political risks all begin to crystalise. These follow persistent inflation, monetary policy normalisation globally and the increased perception of political risk as we approach the electioneering season.
“We expect a continued uptick in marginal rates at subsequent bond auctions, as we believe investors will remain standoffish. The DMO will need to reel in higher rates to attract fund managers’ interests.
“Also, the recent hawkish stance adopted by the CBN, hiking rates by 250bps in total (100bps at July’s MPC meeting), will drive investor’s appetite for increased rates.
“Notwithstanding, we maintain the FG’s apparent need to rely on the domestic debt market to fund its fiscal imbalance, as external debt market conditions remain unfavourable. These factors will further impetus for shifting pricing power away from the FGN/DMO and into the hands of private sector asset managers.”
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FRSC Boss: Tinubu’s CNG, EV Drive Creating Jobs, Attracting Investment
FRSC Boss: Tinubu’s CNG, EV Drive Creating Jobs, Attracting Investment
President Bola Tinubu’s ambitious transition to Compressed Natural Gas (CNG) and Electric Vehicles (EVs) is already attracting fresh investments, creating new employment opportunities and laying the foundation for a cleaner, safer and more sustainable transport system, the Corps Marshal of the Federal Road Safety Corps (FRSC), Shehu Mohammed, has said.
Speaking at the 2026 Nigeria Auto Industry Summit (NAISU) organised by the Nigeria Auto Journalists Association (NAJA), Mohammed described the Presidential CNG and EV Initiative as a game-changing policy capable of reshaping Nigeria’s automotive and transportation landscape while stimulating industrial growth and youth employment.
The FRSC boss said the initiative aligns with the United Nations Sustainable Development Goals (SDGs), particularly those promoting climate action and sustainable transportation, while commending President Bola Tinubu for the bold reforms and for assigning the corps a strategic role in the programme’s implementation.
“This initiative has brought in so many investments. We have assembly plants producing electric vehicles and CNG vehicles, companies manufacturing CNG cylinders and conversion kits, and new technology that is creating opportunities for our youths,” he said.
According to him, the initiative is expected to generate thousands of jobs while positioning Nigeria as a leading destination for green mobility investments in Africa.
“Really, it is a massive investment coming into Nigeria, and it is producing massive jobs for the unemployment challenge we have,” he added.
Mohammed also linked the administration’s transport agenda to ongoing infrastructure projects, including the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Super Highway, noting that the projects would improve connectivity and support a safer, more efficient transport network.
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He expressed confidence that the reforms would help Nigeria achieve the United Nations target of providing “a safe, accessible, affordable, reliable and sustainable transport system for all Nigerians by 2030.”
On road safety, the Corps Marshal stressed that reducing road crashes and fatalities requires collective action rather than relying solely on the FRSC.
“Road safety should not be left to the FRSC alone. It is a collective responsibility involving government, communities and every Nigerian,” he said.
While noting that the corps has sustained public enlightenment campaigns for over three decades, Mohammed said greater participation from state governments, local councils, traditional institutions and community leaders is essential to changing road users’ behaviour.
He disclosed that the FRSC has expanded its awareness campaign beyond motor parks to grassroots town hall meetings, enabling the agency to engage drivers, passengers and community stakeholders more directly.
“When you see a bad driving culture, stop the person and caution him. Let him be embarrassed. Road safety is everyone’s responsibility,” he said.
The Corps Marshal expressed concern over persistent traffic violations such as speeding, overloading and the dangerous practice of conveying passengers alongside goods and livestock, warning that such behaviours remain major causes of fatal crashes.
He also urged passengers to challenge reckless drivers, particularly those who exceed speed limits, saying public intervention could save lives.
Mohammed commended NAJA and the media for their sustained support for the FRSC’s road safety campaigns and called for deeper collaboration with journalists to achieve the global target of cutting road traffic crashes, injuries and fatalities by 50 per cent before 2030.
Speaking on the legacy he hopes to leave, the FRSC boss said his priority is to build a technology-driven, people-focused organisation anchored on professionalism, collaboration and excellent service delivery.
“The legacy I want to leave is partnership, collaboration and bringing out the best in FRSC personnel to serve Nigerians and further enhance the image of the corps,” he said.
FRSC Boss: Tinubu’s CNG, EV Drive Creating Jobs, Attracting Investment
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Lanre Shittu Motors Leads Drive to Steer Lagos Students Away from Crime, Donates books to public Schools
Lanre Shittu Motors Leads Drive to Steer Lagos Students Away from Crime, Donates books to public Schools
Lanre Shittu Motors is expanding its investment in youth development beyond skills acquisition, launching a major education campaign aimed at steering thousands of Lagos secondary school students away from financial crime through value-based learning and character development.
In partnership with the author of Clean Hands, Bright Future: A Youth Guide to Avoiding Financial Crime in Africa, the foremost automotive company has begun distributing the book to 200 public secondary schools across Lagos State, with more than 150 schools already reached in the first phase of the initiative.
The campaign, which began at Kuramo Senior College and Victoria Island Senior Secondary School, seeks to equip students with a clear understanding of the dangers of fraud, cybercrime, identity theft, examination malpractice and other financial crimes, while promoting integrity, hard work, ethical leadership and responsible citizenship.
Author of the book, Mr. Adedayo Aluko, said the project was inspired by the alarming rise in financial crime among young people and the need to intervene early through education.
“The rate of financial crime among youths is becoming increasingly alarming. We believe education is one of the most effective tools to prevent crime. The message of the book is simple: crime does not pay, and with clean hands, every young person can build a brighter future,” Aluko said.
He explained that the initiative goes beyond book distribution, with plans to return to beneficiary schools for interactive enlightenment sessions and career talks to reinforce the message of integrity.
According to him, the book simplifies over 100 forms of financial crimes, helping students understand offences that many young people unknowingly become involved in. Rich illustrations and practical examples were deliberately included to engage students and make the lessons memorable.
Aluko commended Lanre Shittu Motors for supporting the project, describing the Managing Director of the company, Mr Taiwo Shittu, as a long-standing advocate of youth empowerment and education.
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“Mr. Taiwo Shittu believes there is no shortcut to success. During the flag-off, he personally handed copies of the book to students and encouraged them to embrace hard work, education and skill acquisition as the true pathways to success.
Speaking on the initiative, the LSM MD, Mr. Taiwo Shittu, said the company’s decision to sponsor the distribution reflects its belief that preventing crime begins with shaping values at an early age.
“Young people are the future of our nation. By investing in character development and educating students about the consequences of financial crime, we are helping to build responsible citizens who will contribute positively to society.
“At Lanre Shittu Motors, we believe integrity, education and hard work remain the surest foundations for lasting success,” he said.
Shittu noted that the company’s strong culture of corporate social responsibility was inherited from its founder and his father, the late Alhaji Rasak Olanrewaju Shittu.
He said the late automotive icon instilled in his children and employees the enduring values of compassion, community service and giving back to society, a legacy that continues to shape Lanre Shittu Motors’ investment in education, youth development and other impactful social initiatives.
Published in May 2026 and endorsed by the Chartered Institute of Bankers of Nigeria (CIBN), Clean Hands, Bright Future, has been described as a practical guide for young people navigating increasing social and economic pressures.
The ongoing distribution programme underscores Lanre Shittu Motors’ commitment to corporate social responsibility and its determination to inspire a generation that chooses integrity over shortcuts and honest enterprise over criminality.
Lanre Shittu Motors has over the years maintained a strong record of investing in youth development through skills acquisition and capacity building initiatives.
The company has consistently provided opportunities for young Nigerians to acquire technical and vocational skills in automotive engineering, vehicle maintenance and related fields through internship, apprenticeship and industry training programmes.
It has also supported educational and youth empowerment initiatives aimed at preparing young people for productive careers, reinforcing its belief that equipping youths with employable skills remains one of the most effective ways to reduce unemployment, discourage crime and promote sustainable national development.
Lanre Shittu Motors Leads Drive to Steer Lagos Students Away from Crime, Donates books to public Schools
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Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns
Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns
The Chairman of the Auto and Allied Sector Group of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Femi Eguahide, has warned that policy inconsistencies, regulatory bottlenecks and weak coordination between the public and private sectors could derail Nigeria’s clean mobility ambitions, urging the Federal Government to deepen collaboration with industry stakeholders to accelerate the transition to Compressed Natural Gas (CNG) and Electric Vehicles (EVs).
Speaking at the 3rd Nigeria Auto Industry Summit in Lagos on Thursday, Eguahide said the success of the Federal Government’s clean mobility agenda would depend on sustained stakeholder collaboration, policy consistency and the removal of operational challenges slowing investment and implementation.
The summit, organised by the Nigeria Auto Journalists Association (NAJA) under the theme, “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” brought together policymakers, regulators, automobile manufacturers, financiers, transport operators, researchers, safety agencies and development partners to chart a roadmap for accelerating Nigeria’s transition to cleaner transportation.
Eguahide acknowledged the Federal Government’s commitment to alternative energy solutions through the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), but stressed that translating policy into tangible results would require stronger coordination between government institutions and private investors.
According to him, the automotive industry remains a critical driver of industrialisation, job creation and economic growth, making it imperative for government agencies to work closely with manufacturers, assemblers, financiers and technology providers to create a more predictable and investment-friendly operating environment.
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He said effective policy implementation must be backed by continuous stakeholder engagement capable of resolving challenges surrounding vehicle conversion, local manufacturing, infrastructure development, financing and technology deployment.
Eguahide maintained that Nigeria possesses enormous potential to build a globally competitive clean mobility ecosystem, but cautioned that fragmented policies and institutional inefficiencies could slow the country’s progress if left unresolved.
He therefore urged government agencies to deepen engagement with the organised private sector to develop practical solutions that would accelerate the rollout of CNG refuelling infrastructure, EV charging networks and local automotive production.
Earlier, the Federal Government reaffirmed its commitment to expanding Nigeria’s clean mobility ecosystem through increased investment in infrastructure, local manufacturing and strategic partnerships.
Speaking on behalf of the Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Barrister Ismaeel Ahmed, the Initiative’s Chief Compliance Officer, Engr. Zayyanu Tamberi Yabo, said the programme had evolved into a key pillar of President Bola Tinubu’s transport and energy reform agenda.
According to Ahmed, the Presidential Initiative was established not merely to promote alternative fuels but to build an integrated ecosystem covering infrastructure development, investment, vehicle conversion, local manufacturing, technical capacity building and consumer confidence.
“Our approach from the beginning has been to build the foundations of a sustainable industry rather than pursue isolated interventions,” he said.
He disclosed that certified CNG conversion centres had expanded significantly across the country over the past two years, while new refuelling stations were being developed through public and private sector investments.
Ahmed added that vehicle conversions continue to rise as commercial transport operators and private motorists increasingly embrace CNG because of its lower operating costs.
He also highlighted partnerships with financial institutions, energy companies and automobile manufacturers aimed at improving access to financing and accelerating the adoption of clean mobility technologies.
Despite the progress, he identified infrastructure expansion, consumer financing, local manufacturing capacity, technical training, research, innovation and standardisation as priority areas requiring sustained attention.
In his welcome address, NAJA Chairman Theodore Opara described the summit as a strategic platform for shaping the future of Nigeria’s automotive industry.
He said reforms introduced by the Tinubu administration had created fresh momentum for CNG, electric vehicles and local automotive manufacturing, adding that stronger collaboration among government, industry players and the media would be critical to sustaining the gains.
Also speaking, the Director-General of the Standards Organisation of Nigeria (SON), Dr. Ifeanyi Chukwunonso Okeke, represented by Engr. Olalekan Omoniyi, said strict compliance with internationally recognised standards would determine the success of Nigeria’s transition to EVs and CNG-powered transportation.
He disclosed that SON had developed more than 80 Nigerian Industrial Standards for CNG vehicles and equipment, as well as 87 additional standards and the National Nigeria Guideline (NNG 1214:2024) for CNG vehicle conversions.
The SON boss warned against the proliferation of uncertified conversion centres and substandard equipment, urging mandatory certification for imported and locally assembled EVs, CNG vehicles, conversion kits and charging infrastructure.
Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns
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