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Petrol subsidy removal puts Nigeria’s external reserves at risk –  CBN

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The Central Bank of Nigeria (CBN) says the country’s foreign exchange reserves are at risk due to the petrol subsidy removal and lower crude oil earnings.

As of September 12, Nigeria’s external reserves stood at $36.08 billion, according to data from the CBN.

In its ‘Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the Fiscal Years 2024-2025,’ published on Tuesday, CBN also said increased external debt servicing obligations could pose downside risks for the growth of external reserves during the period.

“Lower crude oil earnings, fuel subsidy removal, rising import bills and increased external debt servicing obligations could pose downside risks for the accretion to external reserve,” CBN said.

“In addition, the sustained monetary policy tightening by central banks across advanced economies increases the risk of capital outflow.”

Nevertheless, the financial regulator said the outlook for Nigeria’s external sector in 2024 and 2025 is optimistic, on the expectation of favourable terms of trade, occasioned by a sustained rally in crude oil prices and an improvement in domestic crude oil production.

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CBN also said the positive outlook is supported by the sustenance of crude oil prices, propelled by the decision to cut production, and gains from capital flows and remittances.

President Bola Tinubu announced the end of petrol subsidy on May 29, 2023, however, there have been reports that the federal government has restored it.

On August 19, TheCable reported that Tinubu approved a request by the Nigerian National Petroleum Company (NNPC) Limited to utilise the 2023 final dividends due to the federation to pay for the petrol subsidy.

On the same day, NNPC denied the return of subsidy, but it later confirmed subsidising petrol, as the company said the federal government owes it N7.8 trillion for petrol subsidy.

Two weeks later, NNPC admitted to owing suppliers of petrol, adding that it is facing financial strain due to the petrol supply costs.

Also, Agora Policy, an Abuja-based think tank, on September 1, said petrol subsidy will reach an all-time high in 2024 after gulping N4.2 trillion from January to July.

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‘RISING DEBT, LOW CRUDE OIL PRODUCTION THREATENS NIGERIA’S FISCAL PERFORMANCE’

CBN said the fiscal performance is threatened by the rising debt, low crude oil production and lingering insecurity.

Also, the apex bank said while output growth is expected to maintain a positive trajectory, some risks are likely to undermine the growth outlook.

“Nigeria’s output growth is expected to maintain a positive trajectory in 2024/2025,” CBN said.

“The growth prospects are dependent on continued policy support in the agriculture and oil sectors, reforms in the foreign exchange market, and the effective implementation of the Finance Act 2023 and the 2022-2025 Medium-Term National Development Plan (MTNDP).

“The risk to the outlook is still tilted to the downside, characterized by significant headwinds such as rising energy prices emanating from lingering effects of the Russia-Ukraine war, and the persisting security and infrastructural challenges, which could undermine the growth outlook in the short to-medium-term.

“Domestic prices are expected to remain elevated through 2024/2025, on the back of spillovers from global supply constraints, and exchange rate pass-through. More so, the persisting security and infrastructural challenges could exacerbate inflationary pressures.

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“The performance of the fiscal sector is expected to remain on a positive recovery trajectory in 2024/2025. This outlook is contingent on the effective implementation of the Finance Act 2023 and restructuring of key revenue generating MDAs to boost non-oil revenue.

“However, low domestic crude oil production, growing public debt, lingering insecurity, global economic slowdown, and the Russia-Ukraine war, could pose significant downside risks to fiscal operations in the short- to medium-term.”

According to the CBN, Nigeria’s financial sector is also expected to remain resilient in 2024 and 2025.

CBN said the outlook mirrors the efforts of the apex bank in continuously monitoring emerging vulnerabilities and risks in the system, including periodic stress-tests, examination exercises, and the provision of risk mitigants.

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Tinubu lands in Akwa Ibom for APC rally, commissioning of projects

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President Bola Tinubu has arrived in Uyo, Akwa Ibom State, to attend an All Progressives Congress (APC) political rally as well as the inauguration of several projects executed by Governor Umo Eno’s administration and .

The President arrived in the state on Friday alongside his wife, Remi Tinubu, and was received by Governor Eno, Vice President Kashim Shettima, government officials and other dignitaries.

Tinubu’s visit is expected to feature the commissioning of key infrastructure projects across the state, including facilities at the Victor Attah International Airport.

The President is scheduled to inaugurate the airport’s new international terminal building, international airport hospital and Ibom Aviation Village.

Other projects lined up for commissioning include the Airport-Okopedi Road, which connects communities in Nsit Atai and Okobo Local Government Areas, and Ring Road 3, linking Idoro Road to Ikot Ekpene Road through Uyo and Ibiono Ibom.

The AKWA-GIS Office Complex, Command-and-Control Centre and ARISE Palm Resort are also among the projects scheduled for inauguration.

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The President’s visit was earlier announced by his Special Adviser on Information and Strategy, Bayo Onanuga, in a statement on Thursday.

Onanuga said the President would commission the projects before participating in a political rally organised by the APC in the state.

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2027: Help ensure free, fair election, Obi calls on international community

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Peter Obi, presidential candidate of the Nigeria Democratic Congress (NDC), , has called on the international community to support efforts to ensure free, fair, transparent and credible elections in Nigeria.

Obi, a former governor of Anambra state, made the call on Thursday after meeting with the new British High Commissioner to Nigeria and his delegation at the Commissioner’s residence in Abuja.

According to Obi, in a statement shared on his X handle, discussions at the meeting focused on governance, the welfare of Nigerians and the forthcoming elections.

He said his appeal to the international community was not for support for any  political party or candidate but for the protection of Nigerians’ democratic rights.

“Our appeal to the international community is not for support for any particular candidate or political party. It is for something far more fundamental: the protection of the Nigerian people’s democratic right to freely choose their leaders through free, fair, transparent and credible elections, Obi stated.”

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He stressed that democracy should reflect the choices and aspirations of the people, urging foreign partners to continue promoting accountability and respect for the people’s mandate.

“Democracy must be about the people, their choices and their future,” he said.

Obi also encouraged the international community to continue standing with Nigerians, insisting that the outcome of elections must reflect the genuine will of the electorate.

The NDC candidate further said he congratulated the British High Commissioner and the people of the United Kingdom on the occasion of the birthday of King Charles III.

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Good morning! Nigerian Newspapers Headlines: 2027: Court ruling rattles ADC, threatens Atiku’s presidential bid

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1. The crisis rocking the African Democratic Congress leadership deepened on Thursday after the Federal High Court in Abuja nullified the National Working Committee led by former Senate President, David Mark, in a ruling that also invalidated the process that produced former Vice-President Atiku Abubakar as the party’s presidential candidate for the 2027 elections.

The judgment, delivered by Justice Peter Lifu, also nullified the emergence of former Minister of Interior, Rauf Aregbesola, as National Secretary, and other decisions taken by the Mark-led leadership, including the nomination of candidates for elective offices. The court further ordered the Independent National Electoral Commission not to recognise or act on decisions taken at the party’s 99th National Executive Committee meeting of July 27, 2025.

2. African Democratic Congress (Adc) presidential candidate Atiku Abubakar lacks what it takes to challenge President Bola Ahmed Ahmed Tinubu in the January 16, 2027 election, Vice President Kashim Shettima, said yesterday. He described Atiku’s  political influence as totally down, beginning with his Adamawa home state. According to him, in the Ekiti and Osun recent governorship elections, Atiku’s ADC performed abysmally, which is another piece of evidence of the former Vice President’s lack of political influence.

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3. The Minister of Defence, Gen. Christopher Musa (retd.), has said the armed forces will gradually withdraw from internal security duties as the Nigeria Police Force builds its capacity.
Musa spoke at the APC Abuja Roundtable in Abuja on Thursday. He said the military’s growing role in police affairs reflected declining confidence in the police, adding that the constitution allows the military to step in when situations exceed the police’s capacity, but admitted the current level of involvement was excessive


4. US President Donald Trump has blamed the stock market’s sharp decline on the electoral victories recorded by the opposition Democratic Party in the midterm elections earlier this week. Trump made the accusation on Thursday in a post on his Truth Social platform, following a sharp selloff in US equities.

5. Minister of the Federal Capital Territory, Nyesom Wike, has dismissed the political support behind Peter Obi, presidential candidate of the Nigeria Democratic Congress, saying the wave that propelled him in the 2023 election no longer exists. Wike also described Obi as a dramatist, insisting that the former Anambra State governor had nothing to offer Nigerians ahead of the 2027 general election.

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6. The factional National Chairman of the African Democratic Congress, Nafiu Bala Gombe, has commended the Federal High Court for what he described as its independent, impartial and courageous handling of the party’s leadership dispute. Bala, in a statement on Thursday reacting to the judgment in Suit No. FHC/ABJ/CS/1819/2025, involving him, the ADC and four others, praised the trial judge for determining the case based on constitutional and statutory provisions rather than political considerations.


7. The National Drug Law Enforcement Agency has raised concerns over the increasing involvement of South African nationals in international drug trafficking. The agency said three South Africans had been arrested in recent operations, with large quantities of heroin, cocaine and synthetic cannabis, popularly known as Loud, recovered from them.

8. A Federal High Court sitting in Abuja on Thursday fixed December 7, 2026, for the trial of six alleged coup plotters who were arrested by the security operatives following the botched exercise. The court fixed the date after it dismissed the objections of the alleged coup plotters against the admission of their statements and video recordings made to the military during their interrogation.

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9. The Zone XI Command of the Nigeria Police Force said on Thursday that its operatives involved in the raid on a hostel occupied by some students of the Federal Polytechnic, Ede, Osun State, had been detained as an investigation into the incident commenced. The state Police Public Relations Officer, Olanrewaju Ojedele, disclosed this on Thursday, adding that the command had commenced an investigation into the circumstances surrounding the incident.

10. Minister of Power, Joseph Tegbe, has acknowledged worsening electricity supply disruptions in Lagos, Abuja, Ogun, Kwara and Oyo states, as the Federal Government moves to recover abandoned power equipment, beginning with the clearance of 44 containers from Apapa ports in Lagos. The minister said the affected areas had recently recorded noticeable improvements in electricity supply before the latest disruptions.

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