
News
Nigeria in danger as subsidy drains foreign exchange income
Petrol subsidy and other major expenses being incurred by the Federal Government are taking a bite out of Nigeria’s declining foreign exchange earnings.
Nigeria is in the middle of a serious crunch that has strained its forex reserves, stifled the value of the naira, spooked foreign investors, and raised the cost of doing business in the import-dependent economy.
“The official foreign exchange receipt from crude oil sales into our official reserves has dried up steadily from above US$3.0 billion monthly in 2014 to an absolute zero dollars today,” Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), said at an industry event in bemoaning the consequence of subsidy claims on the country.
Analysts and industry operators identified four activities that are eating into the government’s already lean FX income, and if discontinued, would free up more cash for the government to spend on critical infrastructure that would stimulate inclusive, robust and sustainable growth.
Struggling oil production

Findings showed Nigeria’s forex challenges became obvious in 2016, when oil revenue, which accounts for more than half of totally collected revenue, declined significantly owing to a collapse in global oil prices and a plunge in domestic oil production volume attributed to activities of militants in the oil-rich Niger Delta.
While oil prices rebounded, Nigeria’s oil production struggled to recover from an average of 2 million barrels per day (bpd) in 2016.
Calculations by BusinessDay showed the country’s output averaged 1.34 million bpd in the first 10 months of 2022 against the 2022 budget benchmark of 1.88 million bpd, costing the nation about 161.58 million barrels in lost production worth about $16.7 billion.
The country has also been unable to meet its OPEC quota since November last year at a time of rising oil prices and severe revenue and FX woes at home.
Analysts blamed massive oil theft, vandalism of major assets, dilapidated infrastructure and declining upstream investment for Nigeria’s inability to earn more petrol dollars.
“For other countries, the rally in oil prices means more foreign exchange reserves, higher revenues, and potential economic growth. In Nigeria’s case, this blessing could turn into a curse,” Lukman Otunuga, senior research analyst at FXTM, said in a note.
Fuel subsidy
Nigeria has over time held on to the policy of capping the prices at which it sells refined fuel in the domestic market. This is irrespective of whether Brent crude — the benchmark of oil prices at the international market — increases or not.
This makes Nigeria’s state-owned oil company remit a small amount of money and sometimes zero amount into the federation account.
“It’s simple; a large chunk of Nigeria’s FX goes into payment of petrol subsidies,” Ayodele Oni, an energy lawyer and partner at Bloomfield law firm, said.
Despite its strain on Nigeria’s fiscal with foreign exchange earnings plummeting, the controversial petrol subsidy regime has also remained, with the latest end date set for June 2023. In the meantime, the practice continues to dig holes in the government finances and is set to gulp a quarter of the total budget for 2023.
President Muhammadu Buhari, who has dilly-dallied on scrapping the subsidy, shocked everyone during the presentation of the 2023 budget last October when he admitted it was unsustainable. That’s after spending N7.3 trillion subsidising petrol.
This amount is more than four times the amount it spent building new schools, health centres and equipping new science labs during the period.
In September 2022, the Economist wrote a report detailing how Nigeria is a “conspicuous absentee from this year’s merry petro-party” caused by the Russia-Ukraine war.
“Price controls are the biggest reason the boom is ruining the public purse,” the Economist said about Nigeria.
FX subsidy
Under renewed pressure from Nigerians trying to ditch expiring naira notes, Nigeria operates a multiple foreign exchange window where the US dollar can be sourced at a rate of N444/$ and another where it can be bought at a weaker rate of N780/$.
Findings showed the disadvantages of Nigeria’s current practice far outweigh its gains.
While the hard peg has the benefit of dampening imported inflation, its disadvantages include reducing the naira amount of oil revenue that goes to the federation account and undercharging duty on imports.
“A possible solution to the foreign exchange crisis in the market is for the government to ditch the failing hard peg policy and allow the naira to weaken in line with the long-term inflation rate of the currency and that of the dollar,” said Bode Agusto, chief executive officer of consulting and credit rating firm, Agusto & Co.
Agusto says Nigeria may also struggle to fully float the currency due to the volatility of its main source of dollar inflows – crude oil exports.
Debt servicing
Since the government is cash-strapped, Nigeria has resorted to huge borrowings to fund ballooning budgets thus; this has made its debt servicing obligations to widen.
New data seen by BusinessDay show Nigeria’s borrowing costs on local bonds jumped to a five-year high, adding pressure to a debt service burden that eats up more than two-thirds of revenues in Africa’s biggest economy.
As of August, debt service consumed 84 percent of Nigeria’s revenues, and the World Bank projects it could rise to 169 percent of income by 2025 if the government fails to implement fiscal reforms.
Source: Business Day
News
Police rescue kidnap victim, kill suspect after gun duel in Enugu forest
The Enugu State Police Command has rescued a kidnapped woman and neutralised a suspected kidnapper during an intelligence-led operation in Okpuje, Nsukka Local Government Area of the state.
The operation, which took place on Friday, July 31, 2026, was launched after police received a distress call at about 10:10 a.m. reporting that armed kidnappers had emerged from a nearby forest and abducted a woman along Anuka Road, Okpuje.
According to a statement issued on Saturday, August 1, 2026, by the Police Public Relations Officer, SP Daniel Ndukwe, operatives of the Okpuje Police Division immediately mobilised alongside Forest Guards and members of the Neighbourhood Watch to trail the kidnappers.
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The security team tracked the suspects into the Anuka forest near the Enugu-Kogi State boundary, where they engaged the gang in a gun battle.Time & Calendars
During the exchange of gunfire, one of the suspected kidnappers was killed, while other members of the gang escaped into the forest with suspected gunshot wounds.
The police said the abducted woman was rescued unhurt, while her two children and motorcycle, which the kidnappers abandoned at the scene, were also recovered.

“The victim and her children have since been reunited with their family, while efforts have been intensified to track down and arrest the fleeing suspects,” the statement said.
Reacting to the successful operation, the Commissioner of Police, Enugu State Command, CP Mamman Bitrus Giwa, commended the police operatives, Forest Guards and Neighbourhood Watch members for their swift response and effective collaboration.
He reaffirmed the command’s determination to sustain intelligence-driven operations aimed at combating kidnapping and other violent crimes across the state.
The police commissioner also urged residents to remain security conscious and continue supporting law enforcement agencies with credible and timely information.
CP Giwa said the command remains committed to protecting lives and property through proactive policing and strengthened collaboration with local security stakeholders.
News
Army rescues kidnapped Lieutenant Colonel, civilian in Enugu
Troops of the Nigerian Army have rescued a kidnapped senior military officer, Lt. Col. Ofor Amobi, and a civilian, Mr Ikechukwu Onwuanra, after a 10-day joint search-and-rescue operation in Enugu State.
This is contained in a military operational report made available to the News Agency of Nigeria (NAN) on Saturday in Abuja.
The military said the victims were rescued in the early hours of Friday, following sustained pressure on their abductors.
The military said troops of Sector 1 of Operation UDO KA, comprising personnel of the 82 Division Garrison, 103 Battalion (Reinforced), the Nigerian Navy Special Boat Service and the 197 Special Forces Battalion, carried out the operation.
It said the troops, led by the Commander, 82 Division Garrison, conducted intensive searches across Inyi, Awlaw and Akpugo-Eze forests and communities in Oji River Local Government Area of Enugu State.

According to the report, troops received intelligence from the Divisional Police Officer of Inyi Division at about 2:00 a.m. on Friday on the whereabouts of the victims.
It said the troops immediately launched a fighting patrol to the location where the victims were found abandoned at the edge of a forest in Inyi.
The military said both victims had sustained gunshot wounds and were rescued before being evacuated to the 82 Division Medical Hospital for treatment and medical evaluation.
It added that preliminary interrogation revealed the victims had been blindfolded, transported to an unknown location and later abandoned within a forest along the Enugu-Anambra border.
“The victims attributed their rescue to the sustained pressure mounted by the joint troops, which denied the kidnappers freedom of movement and compelled them to abandon their captives,” it said.
The military said further details on the operation would be made available later.
(NAN)
News
Gunmen invade Catholic Bishop’s residence in Benue, abduct Seminarian
Armed men have reportedly abducted a Catholic seminarian, Mr. Kelvin Ochai, after invading the residence of a Catholic bishop in Otukpo Local Government Area of Benue State.
The attack reportedly occurred on Wednesday, July 29, when the gunmen stormed the Bishop’s residence located in the Asa III area of Otukpo, sparking concern within the Catholic community.
The incident was confirmed in a statement issued on Friday by the Chancellor of the Catholic Diocese of Otukpo, Rev. Fr. Joseph Aboyi Itodo.
According to the statement, the kidnappers made away with the seminarian, Mr. Kelvin Ochai, while details surrounding the attack and the circumstances of his abduction remain unclear.
The Diocese disclosed that the Catholic Bishop of Otukpo, Most Rev. Michael Ekwoyi Apochi, expressed deep sorrow over the incident and called on members of the Church and the general public to pray for the seminarian’s safe return.

Describing the abduction as a painful development, the bishop appealed to all Christ’s faithful in the Diocese of Otukpo, as well as people of goodwill, to unite in prayer for the victim and others being held captive across the country.
“The Bishop, who is deeply saddened by this unfortunate development, calls on all Christ’s Faithful in the Catholic Diocese of Otukpo and all people of goodwill to earnestly pray for the seminarian’s quick and safe release,” the statement read.
The Diocese further entrusted the abducted seminarian and all other kidnapping victims in Nigeria to the intercession of the Blessed Virgin Mary.
“We commit our brother and all those in the kidnappers’ den throughout the country to the powerful intercession of the Blessed Virgin Mary for their speedy and safe release from the hands of their abductors,” the statement added.
As of the time of filing this report, security agencies had not released an official statement on the attack, and it remains unclear whether contact has been established with the kidnappers or if any arrests have been made.
The latest incident adds to growing concerns over insecurity in parts of Benue State and the increasing number of attacks targeting religious institutions and clerics, prompting renewed calls for stronger security measures to protect lives and property.
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