Nigeria’s FAAC Allocates 1.7 Trillion Naira in January 2025

Nigeria’s FAAC distributed 1.7 trillion naira in January 2025 across the federal, state, and local governments. This allocation is expected to enhance liquidity in the treasury bills market, as declining yields present new challenges. Anthony Aigbokhan from Access Bank discussed the topic on CNBC Africa, emphasizing the impacts of such financial distributions.

In January 2025, Nigeria’s Federation Account Allocation Committee (FAAC) distributed a total of 1.7 trillion naira among the three tiers of government: the Federal, State, and Local Government councils. This significant distribution is expected to have a positive impact on the financial markets, particularly in enhancing liquidity levels within the treasury bills sector as market yields continue to decline. Experts at Access Bank highlight the potential for increased financial activity resulting from this substantial funding.

Anthony Aigbokhan, a member of the Treasury Team at Access Bank, participated in a discussion on CNBC Africa regarding the implications of the FAAC disbursement. He provided insights into how such allocations could influence market dynamics and the overall economic landscape, particularly in relation to depleting treasury bill yields.

In summary, the FAAC’s allocation of 1.7 trillion naira for January is poised to improve liquidity in Nigeria’s treasury bills market and stimulate economic activity across the federal, state, and local government levels. The insights shared by industry professionals underscore the importance of financial disbursements in shaping market trends and enhancing treasury yields.

Original Source: www.cnbcafrica.com