The Central Bank of Nigeria (CBN) has introduced a digital fiscal reporting initiative covering the country’s 36 states, the Federal Capital Territory (FCT) and 774 local government areas as part of efforts to improve the accuracy and timeliness of public financial information.
The initiative is designed to replace the largely manual system previously used for collecting sub-national fiscal statistics with a digital platform that will support more efficient reporting of government revenue, expenditure and financing activities.
The development represents an important step towards strengthening Nigeria’s economic data collection system and improving the information available to policymakers.
According to the CBN, the programme is being implemented through its Statistics Department and is intended to provide more reliable financial information for monetary, fiscal and broader economic policy decisions.
The bank disclosed the development following a Sub-National Fiscal Statistics Stakeholders’ Engagement held recently in Abeokuta, Ogun State.
Speaking during the engagement, the Director of the CBN’s Statistics Department, Dr Usman Moses Okpanachi, explained that reliable fiscal statistics were essential for understanding government financial activities and supporting evidence-based policymaking.
He noted that information on government revenue, expenditure and financing requirements helps policymakers assess economic conditions and identify emerging fiscal pressures.
Replacing the manual reporting system
Under the previous arrangement, the Sub-National Fiscal Survey relied largely on manual reporting and was conducted twice a year.
However, the process faced challenges involving delays in submissions, logistics, data validation and processing.
These limitations affected the availability of timely and consistent information about the financial activities of state and local governments.
The new digital system is expected to address some of these challenges by introducing standardised data entry, improved validation procedures, simplified submissions and better monitoring of reported information.
It will also make corrections more traceable, allowing relevant authorities to monitor changes made to submitted financial records.
Another important feature of the initiative is the transition towards more frequent quarterly reporting.
This would provide the CBN with more regular information about government finances compared with the previous twice-yearly survey arrangement.
The availability of more frequent information could improve the ability of policymakers to monitor changes in government spending, revenue generation and borrowing requirements.
Why the CBN needs better fiscal information
The financial activities of state and local governments can influence wider economic conditions.
Government spending, for example, can affect the amount of money circulating within the economy, while borrowing activities can influence liquidity and financing conditions.
Similarly, revenue collection provides information about the financial position of government authorities and their ability to meet expenditure commitments.
When reliable information is unavailable or delayed, policymakers may find it difficult to assess the full impact of public-sector activities.
The CBN believes that improved fiscal reporting will strengthen its ability to understand these developments.
The initiative also comes as the apex bank continues to strengthen its forward-looking, data-dependent monetary policy framework and moves towards a more explicit inflation-targeting regime.
Reliable economic statistics are important for monetary policy decisions because they help authorities evaluate inflationary pressures, liquidity conditions and developments in the wider economy.
However, the digital platform alone will not guarantee accurate reporting.
The quality of the information will still depend on the financial records maintained by participating government institutions and the commitment of officials responsible for submitting the data.
States and local governments begin implementation
The nationwide stakeholder engagement commenced on October 26, 2026, and is expected to cover the remaining states by December 4.
Training sessions for the Federal Capital Territory are scheduled for December 9 and 10.
According to information published by Punch and Channels Television, the exercise is designed to familiarise state and local government finance officers with the new digital questionnaire, validation requirements and reporting procedures.
As of November 6, the programme had covered 16 states and their respective local governments.
The CBN reported that attendance reached 100 per cent in almost all the states visited.
Following the training sessions, participating officers are expected to transfer the knowledge acquired to other colleagues within their institutions.
They will also begin submitting fiscal returns through the digital platform.
The CBN’s Statistics Department will subsequently consolidate the implementation outcomes into a national report.
The bank has assured participating authorities of continued technical and operational support through its branches and Statistics Department.
CBN emphasises accountability and proper record-keeping
While introducing the new reporting system, the CBN stressed that technology would complement rather than replace proper financial documentation and professional judgement.
Okpanachi urged state and local governments to ensure that financial records are properly maintained, reconciled and validated before submission.
He also encouraged the authorities to appoint designated officers who would coordinate the reporting process and ensure continuity.
The bank identified timeliness, integrity and continuity as important requirements for successful implementation.
These measures are expected to improve the consistency of financial information submitted by government institutions.
The initiative could also strengthen the information available for state and local government planning, budgeting and policy evaluation.
Implications for Nigeria’s economy
The introduction of digital fiscal reporting could improve transparency and provide policymakers with a clearer picture of public-sector financial activities.
For investors and businesses, better government financial information could improve understanding of economic conditions and public-sector financing requirements.
It could also help authorities assess how government spending and borrowing activities influence liquidity, inflation and overall economic stability.
Nevertheless, the effectiveness of the initiative will depend on how consistently states and local governments use the platform.
The CBN will need to ensure that the system receives accurate information and that participating institutions maintain the required reporting standards.
If properly implemented, the digital reporting initiative could strengthen Nigeria’s economic data infrastructure and improve coordination between monetary and fiscal authorities.
The development also highlights the growing importance of technology in public financial management, particularly as governments seek more reliable information to guide economic decisions.
For now, attention will remain on the nationwide training exercise and the transition towards regular quarterly submissions.
