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.
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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 United States Mission in Nigeria has reaffirmed its commitment to deepening trade, investment, security, and cultural relations with Nigeria as it marked the 250th anniversary of American Independence and Freedom in Lagos.
Speaking at the celebration, the Chargé d’Affaires at the U.S. Mission to Nigeria, Keith Heffern, said the anniversary celebrates 250 years of American history while looking ahead to the country’s future leadership in innovation and global engagement.
Mr Heffern described Nigeria as one of the United States’ most important partners in Africa, noting that economic relations between both countries have continued to expand.
“Nigeria is now the United States’ second-largest trading partner in Sub-Saharan Africa. In 2025, two-way trade between our countries reached nearly $15 billion, representing a 14 per cent increase over 2024,” he said.
He added that more than 100 US companies currently operate in Nigeria, saying the investments support jobs, economic opportunities, and growth in both countries.
According to him, one of the mission’s priorities is helping American companies succeed in Nigeria through the US-Nigeria Commercial and Investment Partnership, a five-year Memorandum of Understanding signed with Nigeria’s Ministry of Industry, Trade and Investment.
Now in its second year, Mr Heffern said the initiative has brought together nearly 50 American and Nigerian companies to remove barriers to trade and investment.
He noted that Lagos hosted the first ministerial-level meeting under the partnership in January and said cooperation is focused on the digital economy, agriculture, and infrastructure to promote long-term economic growth.
Security, Cultural Collaboration
Beyond commerce, Mr Heffern highlighted the growing security collaboration between the two countries. He noted that the National Drug Law Enforcement Agency (NDLEA), working with the US Drug Enforcement Administration (DEA), recently dismantled a major transnational criminal organisation involved in drug trafficking and money laundering.
“Efforts like this disrupt the illicit networks that undermine security, finance criminal activity, and threaten the safety and prosperity of our two nations,” the diplomat said.
Mr Heffern said cultural exchanges remain a strong pillar of the bilateral relationship, with this year’s event themed ‘Motown’ to celebrate the global influence of American music and its connection to Nigeria’s creative industry.
He said Nigerian Afrobeats stars continue to enjoy global recognition, citing Rema and Burna Boy as examples of artists who have achieved international success.
Looking ahead, he said the United States hopes to strengthen cultural and commercial cooperation through sports as it prepares to host the 2026 FIFA World Cup and the 2028 Summer Olympics.
Mr Heffern also highlighted the impact of US exchange programmes, stating that more than 14,000 Nigerians have participated in U.S. government-sponsored exchanges and now form a network of leaders contributing to stronger bilateral relations.
He further announced that construction is underway on the new US Consulate General complex in Eko Atlantic, describing it as one of America’s most significant investments worldwide and “a lasting symbol” of the U.S. commitment to Nigeria.
Earlier at the event, the US Consul General in Lagos, Rick Swart, reflected on his diplomatic career as he prepares to retire from the US Department of State at the end of July.
Mr Swart said the celebration was particularly meaningful given his experience in Lagos after serving in Mali and several other West African countries over the previous 35 years.
He acknowledged Lagos’ diversity, noting its creativity, resilience, innovation, and hospitality towards all its inhabitants.
“Of all the places Bonnie and I could have concluded our diplomatic journey, I cannot imagine a better place than Lagos, Nigeria.
“It has been the honour of my career to serve here in Lagos. The memories and friendships we have made here will stay with us long after we depart,” he said.
Partnership expansion
Also speaking, Lagos State Governor Babajide Sanwo-Olu hailed the American government, describing the United States as a country whose history has shaped global conversations for 250 years.
He said Lagos and the United States have maintained a productive relationship spanning more than six decades through partnerships in finance, technology, healthcare, education, and skills development.
He also said thousands of Nigerians have benefited from exchange programmes and innovations from the United States, expressing confidence that the partnership would create new opportunities for both countries in the years ahead.
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“That singular occasion, idea, and symbol was an act of modern history. There is no part of the world that has not heard of the United States of America. And it continues to shape the global conversation.
“And we’re indeed happy that, for us in Lagos, we have created that relationship for over six decades. We see the United States and Lagos as friends, not new friends, because Nigeria takes a bigger part in that friendship.
“And so one can’t help but feel lucky among the various recipients or beneficiaries of the exchange programmes that we’ve had over this long relationship. We’ve seen relationships in finance, technology, and health. We’ve seen skills being transferred,” Mr Sanwo-Olu said.
The governor noted that Nigeria remains one of America’s largest trading partners in Sub-Saharan Africa and expressed optimism that bilateral businesses and investment would continue to expand.
BY NKECHI NAECHE-ESEZOBOR—The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks with effect from July 1, 2026, as part of efforts to strengthen the stability of the country’s financial system and enforce regulatory compliance.
The apex bank said the action was taken in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
According to the CBN, the revocation was approved by its Governor, Mr. Olayemi Cardoso, following the affected banks’ failure to meet the regulatory requirements necessary for continued operation as licensed financial institutions.
The Bank explained that the decision was necessitated by one or more regulatory infractions, including insufficient assets to meet liabilities, closure of operations without prior approval from the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving a licence, and failure to maintain the minimum capital requirement unimpaired by losses.
The CBN stated that the revocation forms part of its ongoing supervisory and regulatory measures aimed at safeguarding the stability of the financial sector, protecting depositors, and ensuring that all licensed financial institutions operate in compliance with existing laws and regulatory standards.
The apex bank reaffirmed its commitment to promoting a safe, sound, and resilient financial system, adding that it will continue to take appropriate regulatory and supervisory actions whenever necessary to maintain public confidence in Nigeria’s financial system.
The post CBN Revokes Licences of 46 Microfinance Banks appeared first on Business Today NG.
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