Business

World Bank, Nigerian Govt Disagree ON n 2025 Budget Assumptions

Published

7 months ago

May 13, 2025

Editor

The World Bank has described the Nigeria’s 2025 Budget key assumptions of 2.1 million barrels per day oil production and $73 per barrel price as ambitious given the current production level of 1.6mbpd and $60pb price at the international market.

The Nigerian government, however, disagreed and stated that the assumptions were based on the potentials of the economy.

The World Bank in its May 2025 Nigeria Development Update presented on Monday in Abuja, explained that though most of all economic indicators remain positive, inflation remains high.

It noted that for Nigeria to achieve its target of a $1 trillion economy by 2030, the growth rate needs to be five times faster than its current rate of 3.8 percent.

The global bank, despite the challenges and the rising cost of living in the country, urged the Federal Government to stay on course in the implementation of its economic reforms.

While presenting the report to a gathering that included the Ministers of Finance, Wale Edun, Budget and National Planning, Atiku Bagudu, Communication, Innovation and Digital Economy, Bosun Tijani, Governor of Central Bank of Nigeria, Yemi Cardoso, as well as the Governor of Plateau State, Caleb Mutfgang and private sector leaders, the Lead Economist at World Bank Country Office, Dr Alex Sienaet, commended the government for removing subsidies on petrol and liberalizing the foreign exchange market.

It reported that Nigeria’s fiscal outlook remains cautiously optimistic but hinges on the necessary consolidation of recent advances.

“First, it is essential to ensure that the full revenue gains from the removal of the PMS subsidy, estimated at about 2.6 percent of GDP in 2024, are transferred to the Federation Account.

“Despite the subsidy being fully removed in October 2024, NNPCL started transferring the revenue gains to the Federation only in January 2025.

“Since then, it has been remitting only 50 percent of these gains, using the rest to offset past arrears. “Resolving any remaining net arrears and channeling the full benefits of subsidy reform to the Federation is critical for sound fiscal management.

“Second, close monitoring of the 2025 budget implementation is essential, as it has overly ambitious revenue assumptions and may lead to a larger-than-anticipated fiscal deficit.

“The budget aims to boost capital spending, and this must be done sustainably, within the broader objective of fiscal consolidation to complement monetary policy and achieve an overall policy mix that maintains fiscal discipline and brings down inflation.

“Third, sustained efforts to enhance expenditure efficiency and transparency are crucial to maximizing development outcomes.

“This responsibility lies not only with the Federal Government, but especially with states, which now receive more revenue (N13.8 trillion in 2024) than the Federal Government (N12.3 trillion)”, it added.

The Minister of Finance, Wake Edun, pointed out that the government needs to push for transparency of fiscal data and transparency in the oil revenue sector, adding this is key to what the government is trying to achieve.

“In terms of where we go next, the key is investment. It is investments that allow increases in productivity that grows the economy and creates jobs,” he said.

According to him, the government is conducting a forensic audit of the NNPC Limited, assuring that all monies due to the federation account from NNPC Limited would be recovered.

On his part, the Minister of Budget and Economic planning, Abubakar Atiku Bagudu, disagreed that the assumptions made in the 2025 budgets were over ambitious, pointing out that they were based on the country’s potential.

“Are the projections in the 2025 budget ambitious? No, they are not, in all modesty. This is because even in the presentation, two things were said: the oil price which is now $60 per barrel but the average for Nigeria is $73 because of our premium grades,” he submitted.

Also speaking, CBN Governor, Yemi Cardoso said the economy needs a period of sustained stability for it to grow, which is what the central bank has been doing.

“We recognize our role as the custodian of stability and we recognize what we have to do to ensure that we accomplish and attain stability,” the CBN boss explained.
(DAILY POST)

Business

JUST IN: CBN Removes Cash Deposit Limits, Raises Weekly Withdrawal To N500,000

Published

3 days ago

December 3, 2025

Editor

The Central Bank of Nigeria (CBN) has removed cash deposit limits and also increased the weekly cash withdrawal limit from N100,000 to N500,000.

The CBN made this known in a circular to all banks and other financial institutions, signed by Dr Rita Sike, Director, Financial Policy and Regulation Department.

Sike said that the revisions formed part of ongoing efforts to moderate the rising cost of cash management and address security concerns.

According to her, it will also curb money laundering risks associated with heavy reliance on cash.

She said that the cash-related policies previously issued in response to evolving circumstances were aimed at reducing cash usage and promoting the adoption of electronic payment channels.

“However, with time, the need to streamline and update these provisions to reflect present-day realities became necessary,” she said.

She said that with effect from Jan. 1, 2026, the cumulative deposit limit would be removed and the fee previously charged on excess deposits would no longer apply.

The director said that the cumulative weekly withdrawal limit across all channels has been reviewed to N500,000 for individuals and five million Naira for corporates.

“Withdrawals above these thresholds will attract excess withdrawal charges as specified,” she said. “The special monthly authorisation that allowed individuals to withdraw five million Naira and corporates N10 million once a month has been abolished.”

She said that for Automated Teller Machines (ATMs), daily withdrawal remains capped at N100,000 per customer, with a maximum of N500,000 weekly.

She said that this formed part of the overall weekly withdrawal limit applicable to all channels, including point-of-sale (POS) transactions.

Sike said that excess withdrawals above the stipulated limits would attract three per cent for individuals and five per cent for corporate customers.

According to her, this will be shared in the ratio of 40 per cent to the CBN and 60 per cent to the operating bank or financial institution.

She directed banks to load all currency denominations in ATMs, while the existing limit on over-the-counter encashment of third-party cheques remains pegged at N100,000.

Sike said that such withdrawals would be counted as part of the cumulative weekly limit.

The director said that banks were also required to render monthly returns to the relevant supervisory departments.

She listed the departments to include the Banking Supervision Department, Other Financial Institutions Supervision Department, and the Payments System Supervision Department.

Sike said that revenue-generating accounts of federal, state, and local governments were exempted from the new withdrawal rules.

She said that accounts of microfinance banks and primary mortgage banks held with commercial and non-interest banks are also exempted from the new rules.

She, however, said that the long-standing exemption previously enjoyed by embassies, diplomatic missions, and aid-donor agencies had been removed.

Business

Naira Records Depreciation Against US Dollar Across Official, Black Markets

Published

4 days ago

December 2, 2025

Editor

The naira depreciated against the dollar at the official and parallel foreign exchange markets on Monday to begin the new month on a bearish note.

Central Bank of Nigeria’s data showed that the Naira weakened to N1,448.44 on Monday, down from N1,446.74 traded on Friday last week.

This means that the naira dropped by N1.7 against the dollar on Monday when compared to Friday.

Similarly, at the black market, the Naira declined by N5 to N1,475 on Monday from N1,470 at the close of work last week.

The development comes as Nigeria’s foreign reserves stood at $44.61 billion as of November 27th, 2025.

Business

NNPCL Revenue, Profit Soar To N5.08tn, N447bn In October

Published

7 days ago

November 29, 2025

Editor

The Nigerian National Petroleum Company Limited has announced a significant revenue increase to N5.078 trillion for October 2025.

The state-owned firm disclosed this in its monthly financial report released on Saturday.

According to the financial report, from N5.078 revenue in October, the company posted a N447 profit after tax.

The figure represents a significant 19.2 percent increase in revenue from N4.26 trillion and a 106 percent rise in PAT from N216 billion in September 2025.

The report stated that from January to September, NNPCL paid N11.150 trillion in statutory payments to the federation.

Four days ago, NNPCL posted a total of N45.1 trillion as total revenue for the 2024 financial year.