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Nigeria’s Foreign Reserves Decline By $2.55bn In Q1 2025

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Nigeria’s foreign reserves decreased by $2.55 billion in the first quarter (Q1) of 2025.

According to data from the Central Bank of Nigeria (CBN), analysis (by TheCable Index) revealed that foreign reserves fell by 6.23 percent, dropping from $40.88 billion on January 2 to $38.33 billion by March 27.

Further analysis indicated that this represents the largest decline in the first quarter over the past five years.

  • In Q1 2024, foreign reserves reduced by $810.66 million (2.45 percent).
  • In Q1 2023, the drop was $1.57 billion (4.24 percent).
  • In Q1 2022, reserves shrank by $827.34 million (2.32 percent).
  • Nigeria’s Foreign Investment Declines by 30% During the Period.

The reduction in foreign reserves coincided with a decline in “foreign portfolio investment (FPI)” in the first quarter.

According to data from the Nigerian Exchange Limited (NGX), TheCable Index found that “FPI” decreased by 30.3 percent between January and February. The NGX has yet to release data for March.

In January, NGX reported that Nigeria attracted “$17.35 million in foreign direct investments through equities.” However, in February, foreign inflows declined to “$12.09 million.”

During this time, foreign outflows exceeded foreign inflows, with “$31.01 million recorded in January” and “$16.48 million reported the next month.”

Data for “foreign direct investments (FDI)” during this period has not yet been published.

‘Low Petrodollar, CBN Intervention Contributed to External Reserves Decline’

According to “Charles Abuede,” research lead at “Cowry Asset Management Limited,” the decline in foreign reserves in Q1 2025 reflects a shortage of “foreign exchange (FX) inflows” into the economy.

Abuede attributed this to “minimal petrodollar earnings” and “CBN’s intervention in the FX market” through the sale of “$25,000 weekly to bureau de change (BDC) operators.”

“The depletion of Nigeria’s foreign reserves in the first quarter of 2025 clearly indicates a lack of foreign exchange (FX) inflows into the economy,” he said.

“This is largely due to minimal petrodollar earnings, as crude oil prices remain uncertain, fluctuating between $65 and $70 per barrel.

“It may also reflect the Central Bank of Nigeria’s (CBN) ongoing efforts to defend the Naira, alongside the $25,000 weekly FX sales to Bureau de Change (BDC) operators to maintain liquidity in the market.”

“Muda Yusuf,” CEO of the “Centre for the Promotion of Private Enterprise (CPPE),” agreed, suggesting that consistent “CBN interventions” have been steadily depleting reserves.

“Because if we are having that, and we are not having sufficient inflows to balance out those outflows, that could be a possibility. You know, the CBN has been very consistent in defending the currency, which is not a bad idea. What is important is to ensure that we are doing so within a sustainable framework so that it doesn’t create an unnecessary crisis for us,” Yusuf said.

“Secondly, the very depletion of reserves is also possibly triggering some speculative pressure on the market. If people begin to notice that reserves have been declining, it could increase demand pressure on the foreign exchange market.”

Foreign Reserves Decline May Increase Pressure on Naira

During this period, the exchange rate in the official “FX market” moved from “N1,534 per dollar on January 3” to “N1,539/$ on March 26.”

In the parallel market, the “Naira” appreciated from “N1,650/$ to N1,560 per dollar”—a “5.45% appreciation.”

However, Abuede warned that a continued decline in reserves could put further pressure on the local currency, undermining its recent gains.

“This decline will exert further pressure on the local currency, as the apex bank continues its intervention. The key issue is that FX outflows are not being matched by sufficient inflows,” he said.

Yusuf also cautioned that the reserves decline might fuel speculation in the “FX market,” creating concerns about stability and potentially driving further depreciation of the “Naira.”

What FG, CBN Must Do to Increase Foreign Reserves

Abuede stressed that achieving the “2025 budget target of 2.06 million barrels per day (mbpd) of crude oil production” is vital to replenishing foreign reserves.

“To mitigate this challenge, Nigeria must ensure a steady influx of FX into the economy. Achieving the ambitious 2025 budget target of 2.06 million barrels per day (mbpd) of crude oil production is crucial,” he said.

“Additionally, diversifying FX sources beyond crude oil and implementing policies that attract foreign investment and boost remittance inflows will be essential in stabilizing the currency and strengthening external reserves.”

Yusuf recommended that the “CBN” maintain its market-driven approach to “FX policy” while also ensuring increased oil production.

“The second thing has to happen on the fiscal side, and that is about oil production. I am not sure we are still making up our oil output as of now. There are issues around the Niger Delta, and this Rivers State crisis is also possibly contributing to it.”

He also encouraged continued efforts to attract investments from Nigerians in the diaspora through financial instruments and other channels.

BIG STORY

BREAKING: Ganduje Resigns As APC National Chairman

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Abdullahi Umar Ganduje, the National Chairman of the All Progressives Congress (APC), has stepped down from his position with immediate effect.

Ganduje, who previously served as Governor of Kano State, said he is resigning to focus on his health.

His time as APC chairman was characterized by internal strife and controversy. He assumed the role in August 2023, during a period of unrest within the party. Before this, he governed Kano State from 2015 to 2023.

Although Ganduje cited health reasons in his resignation letter, insiders suggest that internal political pressures within the APC may have contributed to his decision.

There have also been allegations of financial misconduct, with some members accusing his office of imposing “excessive financial demands.”

Aspirants for FCT area council positions reportedly complained about high fees required to secure the party’s ticket.

His exit signals a notable change in the APC leadership, with party members and observers awaiting official clarification on the situation.

So far, the party has not released a formal statement on the resignation, leaving room for speculation about the possible impact on the APC’s future.

Ganduje’s tenure also involved legal disputes and attempts to unseat him. In April 2024, a Kano State High Court issued an order preventing him from acting as a party member, based on a case brought by some party officials.

In a separate case, a Federal High Court in Abuja dismissed a suit filed by the APC North Central Forum seeking his removal as chairman.

 

More to come…

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BIG STORY

JUST IN: NAPTIP Declares Speed Darlington Wanted Over Alleged Rape, Cyberbullying

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The National Agency for the Prohibition of Trafficking in Persons has issued a wanted notice for controversial entertainer Darlington Okoye, popularly known as Speed Darlington, over allegations of rape, cyberbullying, and cyberstalking.

The agency made the announcement on its official Instagram account @officialnaptip on Friday.

“WANTED BY NAPTIP. Darlington Okoye, aka Speed Darlington, is wanted in connection with alleged offences including rape, cyberbullying, and cyberstalking.

“Anyone with credible information on his whereabouts is urged to contact NAPTIP immediately. Call: 07030000203, [email protected],” the statement read.

NAPTIP had previously summoned the musician for questioning after he claimed during a live Instagram session that he had sex with a 15-year-old girl. However, he did not respond to the agency’s invitation.

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BIG STORY

13.6% Of Lagos Secondary Students Have Tried Drugs, 6.9% Are Active Users — NDLEA

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The National Drug Law Enforcement Agency, in partnership with the Federal Ministry of Education, has disclosed concerning figures on youth drug use in Lagos State.

Based on a 2024 study conducted by both institutions, 13.6 percent of secondary school students have tried drugs, while 6.9 percent are current users.

In response to the growing issue of substance abuse among young people and other vulnerable populations, the Lagos State Ministry of Health led an intensive awareness initiative on Thursday, June 26, 2025.

The campaign, which took place at the Lagos State Government Secretariat in Alausa-Ikeja, was held to mark this year’s International Day Against Drug Abuse and Illicit Trafficking.

The initiative was coordinated by the Directorate of Pharmaceutical Services and the Lagos State Interministerial Drug Abuse Control Committee, in collaboration with the National Drug Law Enforcement Agency.

This year’s theme was “Breaking the Chains: Prevention, Treatment, and Recovery for All!”

During the event, the Director of Pharmaceutical Services and Chairperson of LSIDACC, Pharm. (Mrs.) Olawale Poluyi, referenced global and national statistics highlighting the scope of the crisis.

She noted that in 2024, over 296 million people globally used drugs, while in Nigeria, 14.4 percent of individuals aged 15 to 64—about 14.3 million people—had used psychoactive substances, with many dealing with substance use disorders.

Poluyi pointed out that “In Lagos State alone, a 2024 study conducted by the NDLEA and Federal Ministry of Education found that 13.6% of secondary school students had experimented with drugs, with 6.9% identified as current users”.

She stressed that these numbers reflect more than just data—they represent broken lives and communities in distress.

She explained that drug addiction is an expanding public health emergency that needs to be approached with scientific and compassionate strategies rather than punishment or stigma.

“Today is not just about awareness. It’s a day of renewed commitment. Drug addiction is not necessarily a moral failure; it is a medical condition. And it must be treated as such,” Poluyi said.

She discussed the multiple factors contributing to drug abuse, including emotional trauma, peer pressure, boredom, and curiosity. She encouraged stakeholders to provide healthier options like counseling, vocational training, religious activities, and sports.

“People turn to drugs for different reasons, but we must ensure there are better outlets, safe spaces where they can heal, learn, grow, and be supported,” she said.

Poluyi also underlined the important role of pharmacists and other medical professionals in fighting drug abuse. She emphasized their duties in areas such as prescription tracking, public education, early detection, and proper medication disposal.

“Pharmacists are not just dispensers; they are gatekeepers in the fight against misuse. We must all play our part,” she said.

Other key attendees at the event included the Director of Epidemiology, Biosecurity and Global Health, Dr. Ismail Abdus-Salam; the Director of LASAMBUS, Mrs. Wuraola Makinde; the Director of Family Health and Nutrition, Dr. Folashade Oludara; and representatives from the Public Enlightenment Department of the Ministry of Information and Strategy.

Speakers at the event emphasized the necessity of inter-agency collaboration and praised the Lagos State Government for its dedication to prevention and youth-centered anti-drug campaigns.

In her final remarks, Poluyi urged healthcare professionals, parents, educators, and community leaders to promote awareness, prevention, and rehabilitation as long-term strategies.

“Let us break the chains of stigma, silence, and suffering. Together, we can build a future where treatment is accessible, recovery is celebrated, and no one is left behind,” she said.

The International Day Against Drug Abuse and Illicit Trafficking, created by the United Nations in 1987, is observed annually on June 26 to promote unified global efforts toward a drug-free world.

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