Business
Budget office DG defends Tinubu’s foreign engagements, faults Peter Obi’s claims
The Director General of the Budget Office of the Federation, Tanimu Yakubu, has defended the foreign engagement strategy of President Bola Tinubu, describing recent criticisms by the former Anambra State Governor, Peter Obi, as a “populist simplification” of Nigeria’s economic realities.
Mr Yakubu, in an article titled “Foreign Engagements and the Dangers of Populist Simplification: Peter Obi’s Ignorance,” argued that Mr Obi failed to appreciate the complexities involved in rebuilding investor confidence and restoring economic stability in a country emerging from fiscal and monetary challenges.
On 16 May, Mr Obi criticised the value of recent foreign state visits by Nigerian leaders, arguing that such engagements must translate into measurable economic benefits for citizens, rather than ceremonial visits.
“State visits by leaders are not tourism, and diplomacy is not a fashion parade,” Mr Obi said.
According to Mr Yakubu, the Tinubu-led administration inherited an economy burdened by structural weaknesses, including fuel subsidy costs, exchange-rate distortions, mounting debt-service obligations, dwindling investor confidence, and heavy reliance on the Central Bank of Nigeria (CBN) financing to sustain government operations.
The Budget Office DG said under such conditions, international engagements should not be viewed as ceremonial trips but as strategic efforts aimed at rebuilding sovereign credibility, strengthening diplomatic relations, restoring investor confidence, and attracting long-term capital.
Mr Yakubu said the former Anambra state governor oversimplifies economic realities, which has a tendency to reduce complex questions of economic recovery.
“No serious analyst disputes that foreign engagements should ultimately produce measurable economic outcomes. The real issue, however, is whether Mr. Obi properly understands the sequence through which nations emerging from fiscal and monetary instability rebuild investor confidence, restore credibility, and reposition themselves within global capital markets.
“President Tinubu inherited an economy facing severe structural stress: an unsustainable fuel subsidy regime, multiple exchange-rate distortions, collapsing fiscal buffers, mounting debt-service pressures, dwindling investor confidence, and unprecedented dependence on Ways and Means financing simply to sustain government operations.
“Under such circumstances, international engagements are not mere ceremonial excursions; they become instruments for rebuilding sovereign credibility, restoring policy confidence, reassuring investors, strengthening diplomatic alignments, attracting long-term capital, and repositioning the country within regional and global economic networks,” Mr Yakubu said.
Economic comparison
He also faulted Mr Obi’s comparison of Nigeria’s economic situation with that of the United States under former President Donald Trump, saying the two countries operate under entirely different economic realities.
According to him, the United States engages China from the position of the world’s dominant reserve currency issuer, also as the largest consumer market on earth, and a mature industrial economy with deep capital markets and global technological dominance.
In contrast, the director general said Nigeria is a reforming emerging economy attempting to stabilize itself after years of fiscal distortion and policy disequilibrium.
Mr Yakubu further argued that the benefits of international engagements often take time to materialise, stressing that major investments, infrastructure partnerships, and sovereign financing commitments usually emerge gradually after sustained diplomatic and economic engagement.
ALSO READ: Ex-foreign affairs minister criticises Tinubu’s ambassadorial appointments
He described it as contradictory for critics to oppose reforms such as fuel subsidy removal and exchange-rate unification while simultaneously demanding immediate foreign investment inflows.
Mr Yakubu said its is inconsistent to oppose stabilization reforms on one hand while simultaneously demanding the investment confidence that only such reforms can eventually produce.
“More importantly, many of the benefits of state engagements do not materialize instantly in the form of dramatic headline announcements. Serious investments, infrastructure partnerships, manufacturing relocations, energy financing arrangements, and sovereign investment commitments often emerge gradually after sustained diplomatic engagement, policy stabilization, and investor confidence-building.
“Ironically, many of the same critics now demanding immediate investment inflows were among those who opposed the difficult stabilization reforms, including fuel subsidy removal and exchange-rate unification, that were necessary to restore the macroeconomic credibility investors require before committing long-term capital,” he said.
He extolled the administration and CBN’s achievements in stabilising the economy with reforms, and that Nigeria was approaching a dangerous fiscal cliff before the administration’s intervention.
“Diplomacy should indeed generate economic value. But rebuilding a damaged economy requires more than slogans, photo comparisons, or selective foreign analogies.
“It requires difficult decisions, international re-engagement, policy credibility, institutional stabilization, and the patience necessary for long-term economic restructuring to take root,” Mr Yakubu said.
The Central Bank of Nigeria (CBN) has proposed the revision of the regulatory framework governing financial holding companies to bolstering the resilience and stability of the country’s financial system.
The regulator disclosed the plan in a circular signed by Rita Sike, the director of its Financial Policy and Regulation Department, on Thursday, inviting stakeholders to send their reviews of the guidelines by 9 July.
“Following several years of implementation, the CBN has identified areas within the extant guidelines that require enhancement to strengthen the operational effectiveness and regulatory oversight of financial holding companies,” the statement noted.
CBN stated that it would further promote a safe, sound and resilient financial system with the guidelines.
It noted that the overhaul was necessary after years of implementing the existing framework introduced in 2014 to mitigate the risks arising from the conduct of non-core banking activities within banking groups.
The regulation review addresses gaps and aligns with evolving regulatory and market developments.
Revisions
Among the key revisions in the guidelines is the clarification and enhancement of minimum capital requirements for financial holding companies to ensure their capacity to serve as a reliable source of financial strength to their subsidiaries.
The revised guidelines also address identified gaps in shared services arrangements to prevent potential abuse or undue advantage over banking subsidiaries.
READ ALSO: Cardoso receives 2026 Central Banking Central Bank of the Year Award in London
According to the CBN, the revision takes into consideration the establishment of clear eligibility requirements for promoters seeking to set up financial holding companies.
The revised framework streamlines the structure of financial holding companies by permitting them, instead of their Nigerian banking subsidiaries, to directly own equity interests in foreign subsidiaries.
It also requires financial holding companies to maintain a minimum 51 per cent equity stake in each subsidiary and be registered as persons with significant control with the appropriate corporate registration authority.
Nigeria’s crude oil production topped its Organisation of the Petroleum Exporting Countries (OPEC) quota in May, reaching its pinnacle in 15 months and cementing its position as Africa’s leading oil producer.
Data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed the country produced an average of 1.53 million barrels of crude oil per day (bpd) during the month.
With a condensate production of 170,446 bpd included, the commission put Nigeria’s average total hydrocarbon output at 1.7 million bpd.
“Nigeria’s oil production witnessed an upswing in May 2026, averaging 1,530,354 barrels of crude oil and 170,446 barrels of condensates per day, bringing the total combined production to 1,700, 800 barrels per day and consolidating Nigeria’s position as Africa’s largest oil producer,” NUPRC said in a statement on Thursday.
The figure represents 102 per cent of Nigeria’s OPEC production quota of 1.5 million bpd, according to the regulator.
The latest performance marks a significant milestone for the country’s oil sector, with total production standing at its peak since last July, when the combined crude oil and condensate output reached 1.71 million bpd.
With the figure for condensates excluded, the 1.53 million bpd in May represents Nigeria’s strongest performance since January 2025, when output touched 1.538 million bpd.
The May figure also represents a 15-month high for crude oil production, excluding condensates.
While Nigeria’s oil production continues to witness significant growth, oil rich communities from the country’s Niger Delta region are grappling with unprecedented levels of oil and gas pollution amidst renewed exploration targets.
Remediation efforts across the region have been conspicuously slow, raising concerns over the country’s refusal to prioritise the welfare of the residents of the region.
Production rises month-on-month
Crude oil production (excluding condensates) in May increased by 2.8 per cent from 1.48 million bpd a month earlier.
The trend has remained positive over the past five months. Combined crude oil and condensate production rose from 1.48 million bpd in February to 1.54 million bpd in March, 1.66 million bpd in April and 1.7 million bpd in May.
The steady rise suggests sustained improvements in operational efficiency across the upstream sector, despite the ongoing challenges facing the global oil market.
READ ALSO: UPDATED: UAE withdraws from OPEC, OPEC+
Among Nigeria’s major production streams, Bonny Terminal recorded the highest output, contributing 293,870 bpd.
Forcados Terminal followed closely with 289,900 bpd, while Qua Iboe produced 173,360 bpd.
Escravos Oil Terminal accounted for 135,470 bpd, while Odudu (Amenam Blend) completed the top five production streams with 63,250 bpd.
Improved operations
The NUPRC attributed the improved production performance to stable operations across the industry.
According to the commission, there were no significant pipeline disruptions or facility outages during the period under review.
It also noted that all the previously scheduled turnaround maintenance programmes have been successfully completed, contributing to improved operational reliability and higher production efficiency.
The latest figures could boost government revenues and strengthen confidence in the ongoing efforts to raise Nigeria’s oil production capacity, which has been constrained in recent years by crude theft, pipeline vandalism and operational challenges.
With output now above its OPEC quota, attention will turn to whether the country can sustain the momentum in the coming months.
-
Health2 days agoCholera Outbreak: 74 dead, over 7,800 cases strain Borno facilities
-
Health3 days ago
Unsafe food causes 53,000 deaths annually in Nigeria – Minister
-
News4 days ago
Presidency Defends Response to Adelabu Relatives’ Rescue and Ogbomoso Abduction
-
News4 days ago
Nigeria’s AI future depends on strong digital infrastructure, ex-NITDA Director says
