Your Salary Is Not a December Budget
Ask someone how they are preparing for December and there is a good chance the answer will be, “I’ll just use my salary.”
It makes sense. Salary comes every month, so what could go wrong?
Quite a lot, actually.
For a lot of people, that is the entire December plan. No amount has been set aside. No real estimate of what the month might cost. Just the assumption that when the salaries start coming in around that period, there will be enough to sort everything out.
December spending is rarely just the usual monthly spending with a few extras. There are gifts, clothes, trips, hangouts, parties, family commitments and all the other things that come with the festive period. When all of that is left to salary, it is easy to spend more than planned simply because the money is available when the expense comes up.
This is why it makes sense to start preparing for the expenses now.
Take a look at what is already known to be needed for December. If there are gifts to buy, clothes to get or travel to pay for, start putting money aside for them from the salaries coming in now. Where it makes sense, some of those things can even be bought ahead of time instead of waiting until everyone is shopping at the same time.
It does not have to be a huge amount from each salary. Work out the likely cost, decide what can comfortably be set aside and keep building the fund between now and December. Keeping it separate from everyday spending can also make it easier not to dip into it.
For example, if the December plans could cost ₦500,000 and there are three salaries before the main spending starts, roughly ₦167,000 from each salary would get there. If that is too much, start with what is realistic. Having something set aside is better than waiting until December to find the full amount.
After the clothes, trips, gifts, parties and everything else have been paid for, the regular bills do not take a break. Life continues in January. Spending every naira of the salary on December can leave January to inherit the consequences.
The Detty December Savings Challenge is a simple way to start putting that money aside ahead of time. Set a target and keep building it with the salaries coming in and give the December plans a fund of their own.
Your salary should fund December, not rescue it.
NOW TO THE NEWS
FG to Charge Interest on Unpaid Taxes from October 1st
The Federal Government is changing how interest on unpaid taxes will be calculated from October 1, 2026, linking the charges to prevailing borrowing costs. Under the new framework, interest on naira-denominated tax debts will be set at the Central Bank of Nigeria’s Monetary Policy Rate (MPR) plus one percentage point but cannot fall below the yield on 364-day Treasury Bills.
The framework, issued by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, will apply uniformly across federal, state and Federal Capital Territory tax authorities. The government said the new approach is intended to reflect the cost of government borrowing when tax payments are delayed. It also reduces the additional margin above the MPR from the previous five percentage points to one percentage point.
For taxes payable in foreign currency, the interest rate will be based on the Secured Overnight Financing Rate (SOFR) plus six percentage points. The applicable rate will be set monthly and published by the Nigeria Revenue Service by the third business day of each month.
Interest will be calculated daily on a simple-interest basis from the date a tax becomes due until it is paid. The new rates will apply to interest arising from October 1, including interest on taxes that became due before that date, while interest accrued before October 1 will continue to be governed by the previous rules.
The new framework does not change the existing 10% penalty for late payment. Tax authorities will also retain the power to waive penalties or interest where good cause is established.
NFEM Turnover Drops 17.7% to $2.25bn for Second Week
Nigeria’s Foreign Exchange Market (NFEM) recorded a 17.7% week-on-week decline in turnover to $2.25 billion in the week ended September 25, extending the market’s decline for a second consecutive week. Turnover had stood at $3.16 billion in the week ended September 18, but total NFEM turnover for September 1–25 has reached about $13.58 billion, already above the $12.54 billion recorded throughout August.
The naira, however, remained relatively stable during the week. The official exchange rate moved between N1,325/$ and N1,336/$ before closing at N1,330/$ on September 25, compared with N1,329/$ the previous week. The weighted average rate also stayed around the N1,330/$ level.
The latest FX data came as the CBN cut its Monetary Policy Rate (MPR) by 350 basis points to 23% from 26.5% at its September 21–22 meeting. The cut followed a slight moderation in headline inflation, which eased from 15.43% in July to 15.39% in August, after the MPR had remained at 26.5% through several previous meetings.
N8.57tn Set to Flow Into Banking System as OMO Bills, Bonds Mature
Nigeria’s banking system could see liquidity rise to N8.57 trillion this week, as about N2.59 trillion is expected to enter the system from OMO bills and bond coupon payments. This comes after net system liquidity rose to N5.98 trillion last week, from N2.86 trillion the previous week.
The expected inflow includes N2.43 trillion in OMO maturities, while banks already placed more than N7 trillion with the CBN’s Standing Deposit Facility last week. The additional cash could further increase the amount of funds available to banks.
The rise in liquidity has coincided with lower money-market rates following the CBN’s decision to cut its Monetary Policy Rate by 350 basis points to 23%. The overnight rate fell to 20.77%, while the funding rate dropped to 20.40%.
Treasury bill yields have also declined following the rate cut, with the average NTB yield falling to 17.89%. However, demand for the bills remained strong, with investors submitting N4.2 trillion in bids at the latest auction for N500 billion on offer.
With another significant amount of liquidity expected this week, the CBN could increase its efforts to absorb excess cash through OMO sales. This will be important for the direction of short-term interest rates and Treasury bill yields in the weeks ahead.
Nigeria’s Public Debt Rises to N166.79tn in Q2 – DMO
Nigeria’s total public debt rose to N166.79 trillion as of June 30, 2026, from N159.35 trillion as of March 31, 2026. Domestic debt accounted for N91.59 trillion, representing 54.91% of the total debt stock.
The latest figures released by the Debt Management Office (DMO) put Nigeria’s total public debt at $120.93 billion in US dollar terms, made up of $54.52 billion in external debt and $66.41 billion in domestic debt. The DMO converted the external debt using the Central Bank of Nigeria’s official exchange rate of N1,379.1842/$ as of June 30, 2026.
The Federal Government accounted for the bulk of the debt at N152.77 trillion, comprising N87 trillion in domestic debt and N65.77 trillion in external debt. States and the FCT accounted for the remaining N14.01 trillion.
Within the Federal Government’s domestic debt, FGN bonds remained the largest component at N64.84 trillion, accounting for 74.53% of its domestic debt. Treasury bills followed with N19.48 trillion, while other instruments included Sukuk, savings bonds, green bonds and promissory notes.
