FCT Faces Economic Instability Amidst Fluctuations In Oil Prices – Perm Sec

Permanent secretary of Treasury and Budget, Federal Capital Territory Administration (FCTA), Alhaji Adamu Wanki, says Nigeria, particularly the FCT, faces significant economic volatility occasioned by fluctuations in oil prices.

Wanki stated this at the Chartered Institute of Treasury Management (CITM) mandatory continuous training programme/induction in Abuja titled: “Challenges of Managing the Treasury and Funding Critical Infrastructure in a Volatile Economy: The FCT Administration Experience.”

Wanki, who described oil as a significant source of government revenue in Nigeria, said that other factors, such as inflation, currency devaluation, and external debt pressures, were the main contributory factors.

He said that the FCT, as the seat of the Nigerian government, was affected by revenue fluctuations, adding that a large proportion of revenue in the FCT came from the federal government’s allocation.

The permanent secretary said this was 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 the devaluation of the naira had escalated the costs of imported materials, construction projects, and infrastructure maintenance.

Wanki said this could lead to project delays and reduced purchasing power for government initiatives, adding that critical infrastructure was needed in the FCT.

According to him, FCT is home to several essential government buildings, administrative offices and services that require constant funding for maintenance, expansion and modernisation.

The permanent secretary listed critical infrastructure needed in the FCT, including transport, roads, railways, and airports, which, he said, required significant investments for expansion, maintenance, and modernisation.

Though he said that FCT had witnessed significant road infrastructure projects like the Abuja light rail, they required continuous funding.

Also speaking, the Registrar of CITM, Dr Olumide Adedoyin, said the training was about the evolving landscape of treasury management, sustainability, excellence and financial integrity.

Adedoyin stated that sustainability was about building management functions and its success where there was little success.

“Every sector of the economy does not have enough money to run the processes. So, how do you manage the processes effectively? How do you manage the debt?” he queried.

The registrar stressed the need to incorporate Environmental, Social, and Governance (ESG) issues into the country’s 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 asked.

Adedoyin said that the Federal Government was doing its best by prioritising many issues, even as it urged the government to support the CITM training.

He said this would assist many processes, bring specialised knowledge, and be impactful to those who need it.