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We’ve Saved $1bn on Petrol Imports, Says NNPC GMD, Kyari

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The Group Managing Director, Nigerian National Petroleum Corporation, Mele Kyari, on Wednesday announced that the oil firm saved over $1bn of the cost that would have been built in on the top of petroleum products imports into Nigeria.

NNPC is the country’s sole importer of petrol for more than three years running and it currently subsidises the commodity, dispensing it to marketers at a subsidised rate, while dealers sell at between N162/litre to N165/litre.

Speaking during a live television programme monitored by our correspondent in Abuja, Kyari said NNPC was able to get petrol at the pumps at about N256/litre, whereas the cost of the commodity would have been about N290/litre.

He explained that since the cost of diesel was currently N280/litre, the price of petrol would have been N10 higher than diesel price, but that NNPC had been able to bring it into Nigeria at about N256/litre.

The corporation’s boss, however, noted that despite the fact that NNPC was bringing in the commodity at the N256/litre rate, it had maintained the cost to marketers at about N160/litre.

Kyari said, “Today NNPC is the sole importer of petroleum products. We are proudly saying as a company today that we have saved over $1bn of cost that would have been built in on the top of importing petroleum products into this country.

“And this is by the fact that we have a much more transparent import process and a partnership arrangement that is ensuring that value is returned to the shareholders.”

He added, “That means, instead of having a value beyond N280/litre, we are delivering products to the pump today at N256/litre and this means that we are saving over N30/litre because of the transparency that we have put in place.

“But what we are selling to the market is about N160/litre and these reasons are very obvious.”

He said the cost of petrol would remain at the current rate until the ongoing engagements with labour on the matter were concluded.

On why diesel was higher in price than petrol, he said AGO was fully deregulated in the downstream sector, while NNPC was incurring under-recovery on PMS.

On NNPC’s moves to invest in Dangote Refinery, he said the corporation would go ahead with its plans, adding that it would recover its cost in the refinery in five years.

Kyari again stated that he was unsure if Aliko Dangote would be interested in the proposal of the corporation to buy 20 per cent stake in the private facility.

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Economy

Tinubu’s Govt Secures Fresh $65m Loan from World Bank

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The World Bank has approved an additional $65 million credit for Nigeria under the Sustainable Procurement, Environmental, and Social Standards Enhancement (SPESSE) project, raising the total funding to $145 million.

According to information obtained from the website of the World Bank, the approval was granted on June 24, 2025—six days earlier than the previously scheduled date of June 30.

The project status has since been updated to “active,” and the World Bank confirmed it has reached the “Bank Approved” stage.

The SPESSE project was initially launched in 2021, backed by an $80 million loan approved in February 2020. It aims to build lasting institutional capacity for managing procurement, environmental, and social standards across Nigeria’s public and private sectors.

New funds to expand e-Procurement and training

The new financing will support the national roll-out of the Electronic Government Procurement (e-GP) platform.

This digital system is expected to streamline procurement processes, reduce delays, and enhance transparency in public spending.

According to the World Bank, in a document released earlier on the additional financing: “The AF will maintain the PDO of the parent project without any change. The project development objective is to develop sustainable capacity in managing procurement, environment, and social standards in the public and private sectors.”

The funds will also scale up training and certification programmes to professionalise Nigeria’s procurement workforce.

While over 33,000 individuals have been trained under the initial phase of the project, more than 25,000 public officers are still targeted for training, based on government assessments.

While the original SPESSE credit will close by June 30, 2026, the additional funding is expected to remain in use until June 30, 2029.

“The parent credit will be closed on June 30, 2026, without any extension; however, the AF is proposed to be closed on June 30, 2029,” the World Bank stated in a document.

The new loan adds to Nigeria’s growing debt stock with the World Bank. As of March 2025, total outstanding debt to the institution stood at $18.23 billion, up from $17.81 billion in December 2024 and $15.45 billion a year earlier.

According to the latest data from the Debt Management Office (DMO), the total debt to the World Bank comprises $16.99 billion owed to the International Development Association (IDA) and $1.24 billion to the International Bank for Reconstruction and Development (IBRD). World Bank loans now account for 39.6% of Nigeria’s total external debt of $45.98 billion, compared to 38.9% at the end of 2024 and 36.4% in March 2024.

With Nigeria continuing to rely on concessional funding to support public sector reforms amid limited fiscal space, the SPESSE project remains a flagship initiative under the country’s wider institutional reform agenda.

However, the growing reliance on external financing highlights the importance of ensuring that these projects deliver measurable outcomes and long-term value.

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Atiku Cautions Tinubu Against ‘Reckless’ Borrowing, Says It’s Economic Sabotage

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Former Vice President Atiku Abubakar has criticised the decision of the President Bola Tinubu-led administration to seek new external and domestic loans, describing the move as reckless and a threat to Nigeria’s economic future.

In a statement on Thursday via X, Atiku said the proposed borrowing of $21.54 billion, €2.19 billion, and ¥15 billion — totaling over $24 billion — would dangerously increase the country’s debt profile, raising concerns about long-term sustainability.

“This borrowing spree will raise our total public debt from ₦144.7 trillion to a crushing ₦183 trillion,” Atiku stated, warning that the new loans represent more than 60% of Nigeria’s total foreign exchange reserves.

He noted that Nigeria’s debt burden has already reached alarming levels, with public debt standing at $94 billion (₦144.7 trillion) as of December 31, 2024.

Atiku further said, “Since President Tinubu assumed office in 2023, public debt has jumped by 65.6%. Under the APC-led administration since 2015, public debt has ballooned by 1,048%, from ₦12.6 trillion to ₦144.7 trillion.”

He decried the country’s debt-to-GDP ratio exceeding 50% and a debt-service-to-revenue ratio of over 130%, arguing that the government is spending more on repaying loans than it earns.

“This is not just unsustainable — it is immoral. The Tinubu administration is borrowing money not for development but to service existing loans, fueling a debt spiral that leaves nothing for infrastructure, education, healthcare, or jobs,” he said.

The former Vice President described the pattern of borrowing as a “Ponzi scheme,” warning that “Nigeria is now caught in a vicious cycle that mortgages the future to pay for the past.”

Calling the plan economic sabotage, Atiku urged immediate action to stop what he described as a looming catastrophe.

“We demand that this reckless borrowing plan be halted immediately. We call on lawmakers, civil society organisations, the media, and the international community to take urgent action to stop this looming catastrophe. Nigeria must not be sold into debt slavery,” he added.

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IMF Scores Tinubu’s Economic Reforms Below Pass Mark

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The International Monetary Fund (IMF) says that Nigeria faces significant uncertainty in its economic outlook despite wide-ranging reforms.

It, however, noted that the gains are yet to benefit all Nigerians with poverty and food insecurity remaining high.

Concluding its 2025 Article IV Consultations with Nigeria’s public policy executives during the week, IMF’s team, led by Axel Schimmelpfennig, its mission chief for Nigeria, acknowledged that Nigeria has taken important steps to stabilize the economy, enhance resilience, and support growth.

The IMF team had met with Minister of Finance and Coordinating Minister of the Economy, Wale Edun, Minister of Agriculture and Food Security, Abubakar Kyari, Central Bank of Nigeria Governor, Yemi Cardoso, senior government and central bank officials, the Ministry of Environment, the private sector, academia, labour unions, and civil society.

Although the IMF representatives said these reforms have put Nigeria in a better position to navigate the external environment, the macroeconomic outlook remains marked by significant uncertainty.

They said that the elevated global risk sentiment and lower oil prices would impact the Nigerian economy.

They, therefore, recommended that macroeconomic policies need to further strengthen buffers and resilience, reduce inflation, and support private sector-led growth.

The final report of the consultations stated: “The Nigerian authorities have taken important steps to stabilize the economy, enhance resilience, and support growth.

‘‘The financing of the fiscal deficit by the central bank has ceased, costly fuel subsidies were removed, and the functioning of the foreign exchange market has improved.

‘‘Gains have yet to benefit all Nigerians as poverty and food insecurity remain high.

‘‘The outlook is marked by significant uncertainty. Elevated global risk sentiment and lower oil prices impact the Nigerian economy.

‘‘The reforms since 2023 have put the Nigerian economy in a better position to navigate this external environment. ‘‘Looking ahead, macroeconomic policies need to further strengthen buffers and resilience, while creating enabling conditions for private sector-led growth.

“The authorities communicated to the mission that they will implement the 2025 budget in a manner that is responsive to the decline in international oil prices. A neutral fiscal stance would support monetary policy to bring down inflation.

‘‘To safeguard key spending priorities, it is imperative that fiscal savings from the fuel subsidy removal are channeled to the budget.

‘‘In particular, adjustments should protect critical, growth-enhancing investment, while accelerating and broadening the delivery of cash transfers under the World Bank-supported program to provide relief to those experiencing food insecurity.

“A tight monetary policy stance is required to firmly guide inflation down. The Monetary Policy Committee’s data-dependent approach has served Nigeria well and will help navigate elevated macroeconomic uncertainty.

‘‘Announcing a disinflation path to serve as an intermediate target can help anchor inflation expectations.”

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