My money grows like grass
Nigeria’s oil money is getting longer
Good morning, Big Brains. Did you ever own one of those hideously green “My money grows like grass” tees? I was too young to afford it but I’ll totally queue to grab one if anybody ever restocks it.
- Margaret
Word count: ~ 1200
Reading time ~ 7 mins
Let’s get into today’s edition:
Nigeria’s oil money is getting longer
Local governments in Nigeria are not making it out of the trenches
The Big Deal
Nigeria’s oil money is getting longer
Everybody say, “Jesus power, super power!” The forces working against Nigeria are getting rusty these days, and we definitely have a higher power to thank for that.
According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), petrol importation has dropped by 29.9 million litres over the past eight months. We went from 44.6 million litres a day in August 2024 to just 14.7 million litres as of April 13.
The CEO of NMDPRA, Farouk Ahmed, explained on April 15 that the drop is due to the resurrection of local refineries. Big shoutout to Port Harcourt Refinery for waking up from its slumber in November 2024, and the many small but mighty refineries putting in the work across the country.
In plain numbers, local production has gone up by 670%. That’s almost 7 times what we used to produce.
Why is this a big deal?
It’s too soon to tell, but Nigeria’s motto might just change from “Unity, Faith, Peace and Progress” to “My money grows from grass.”
In 2024, Nigeria spent ₦15.42 trillion on fuel imports, a crazy 105.3% jump from ₦7.51 trillion in 2023. In 2021, we were at ₦4.56 trillion and in 2020, the importation figure was ₦2.1 trillion. We can go on and on, but you get the gist — Nigeria has been spending its limited funds on petrol despite having one of the largest oil reserves in Africa.
It might seem too soon to celebrate, but this drop in importation is a welcome development because it could mean many good things for regular Nigerians.
For one, if local refineries keep working and producing at this level (or even better), the cost of importing petrol, including all the shipping, forex, and middlemen drama, could reduce drastically.
It also gives the government more financial power. Instead of burning trillions buying fuel abroad, that money could be used to build roads, hospitals, and quality schools.
Nigeria might be on its way to financial freedom if this trend continues. This could also mean less fuel scarcity and fewer queues at petrol stations.
So yes, it’s a small win for now, but still a big deal. Let’s just pray that the usual principalities and powers don’t come back with a plot twist.
Local governments in Nigeria are not making it out of the trenches
On July 11, 2024, the Federal Court introduced 773 local government chairmen in Nigeria to an energy they couldn’t maintain. They promised them a financial autonomy law that still hasn’t taken effect. This financial autonomy was supposed to help local governments become less dependent on state governments. Local governments only receive 20.60% of the country’s monthly revenue and because the money isn’t directly sent to these local governments, state governors reportedly dip their hands into the already limited budget for the grassroots guys.
The Association of Local Governments of Nigeria (ALGON), a group that fights for grassroots leaders in Nigeria, filed a lawsuit against the Federal Government and basically anyone still acting like local government autonomy is optional. But it looks like it would take more than that to implement the financial autonomy. The case, which was supposed to be judged by Justice Inyang Ekwo, wasn’t presented because the court didn’t sit. So, it’s been pushed to May 29, 2025, but mark your calendars at your own risk because they keep promising and failing.
ALGON’s lawsuit (FHC/ABJ/CS/353/2025) is essentially a “we’ve had enough” moment. After the Supreme Court’s big ruling on July 11, 2024, confirming that local governments deserve financial autonomy, many state governments allegedly acted deaf and continued business as usual. So ALGON, repping all 774 LGs, decided to drag everyone to court—including the Attorney-General, CBN, Minister of Finance, Budget Office, Accountant-General, NNPC, some commercial banks, and even one Bello Lawal (what he did, we’re still trying to find out).
What ALGON wants is simple: give local governments their money directly. They’re asking the court to stop all these financial middlemen from touching funds meant for LGAs unless ALGON gives the green light. They’re also asking to be included in the Federation Account Allocation Committee (FAAC) meetings, where Nigeria’s revenue is shared like moi moi, because according to them, how will you share money at a party and leave the hosts outside?
The thing is, it’s not everyone agrees. The Central Bank of Nigeria (CBN) says ALGON has no legal right to challenge anything, since it wasn’t part of the original Supreme Court judgment and isn’t listed in the Constitution. FAAC's legal team also said, “No seat at our table,” claiming the law doesn’t recognise ALGON as a valid participant in the revenue-sharing meetings. Commissioners of Finance from different states joined the resistance, too, saying the law is clear and local governments should know their place.
But ALGON isn’t backing down, and it’s reminding everyone it’s been legally incorporated since 2002 and have the job of defending local governments’ interests.
Right now, local government chairmen are still begging God for a miracle, and we’re not sure how this story will end yet.
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This Week’s Big Question
“24 hours in Tinubu’s seat; who are you sacking?”
David’s response - “I'm sacking the heads of all law enforcement and security agencies, and slapping the death penalty on embezzlement of public funds, and reopening old EFCC cases.
You can also share your response here, and if it’s as interesting as David’s, we’ll feature it in the next edition.
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