Alhaji Adamu Wanki, Permanent Secretary, Treasury, and Budget, FCT Administration, says Nigeria, particularly the FCT, faces significant economic volatility, driven by fluctuations in oil prices.
He added that oil was a major source of government revenue in the country, adding that others such as inflation, currency devaluation, and external debt pressures remained a major factor.
Wanki said this at the Chartered Institute of Treasury Management (CITM) mandatory continuous training program/induction in Abuja on Thursday.
The program was titled, “Challenges of managing the Treasury and funding critical infrastructure in a volatile economy: The FCT Administration experience.”
He said that the FCT, as the seat of government, is affected by revenue fluctuations, adding that a large proportion of revenue in the FCT comes from the federal government’s allocation.
He said that this was tied to oil revenues, stating that “when oil prices fall, the federal allocation reduced which puts pressure on the FCT’s Treasury and hampers infrastructure development.
“Nigeria, particularly the FCT, faces significant economic volatility, driven by factors such as fluctuations in oil prices (a major source of government revenue), inflation, currency devaluation, and external debt pressures.
“The FCT, as the seat of government, is affected by revenue fluctuations and a large proportion of revenue in the FCT comes from the federal government’s allocation,
“This is tied to oil revenues. When oil prices fall, the federal allocation reduces, which puts pressure on the FCT’s treasury and hampers infrastructure development.
On inflation and currency depreciation, he said that the devaluation of the naira had escalated costs for imported materials, construction projects, and maintenance of infrastructure.
This, he said, could lead to delays in projects and reduced purchasing power for government initiatives, adding that critical infrastructure was needed in the FCT.
“The devaluation of the naira has escalated the costs for imported materials, construction projects, and maintenance of infrastructure. This can lead to delays in projects and reduced purchasing power for government initiatives,” he said
He added that the FCT is home to several essential government buildings, administrative offices, and services that require constant funding for maintenance, expansion, and modernisation.
He listed key infrastructure needed in the FCT to include transport, roads, railways, and airports, which he said required significant investment for expansion, maintenance, and modernisation.
He, however, said that the FCT had seen major road infrastructure projects like the Abuja light rail, but these required continuous funding.
Also speaking, Dr. Olumide Adedoyin, the Registrar, CITM, stated that the training was about the evolving landscape of Treasury management, sustainability, excellence, and financial probity.
He said sustainability was about building management functions and its success where there is not much success.
“Every sector of the economy does not have enough money to run the processes, so how do you manage effectively the processes, How do you manage the debt,” he asked
He added that there was a need to encompass the environment, the social, and the governance (ESG) into financial planning.
“How do you go green, making sure that whatever you are doing is sustainable in terms of finance and in carrying other elements in realising your goal, whether in government projects, organisations, or manufacturing?”
He said that the Federal Government was doing its best by prioritising a lot of issues while urging the government to throw support for CITM training.
He added that this would assist a lot of processes, bring specialised knowledge, and be impactful for those that needed it.