Nigeria Spent Decades Pursuing Policies Destined To Bankrupt Its Economy — Emir Sanusi

The Federal Government of Nigeria reported generating N5.21 trillion from oil sales in the first half of 2025. This revenue is a critical component of the nation's budget, reflecting the continued reliance on oil as a primary economic driver. The report did not specify how these funds were allocated or the impact of global oil price fluctuations on the figures, but it highlights the importance of oil revenue amidst economic challenges.

Nigerian states have experienced a significant 68% increase in foreign debt payments, putting additional financial pressure on state governments. This surge is attributed to fluctuating exchange rates and rising interest rates globally. The report highlights concerns over the sustainability of debt repayment amidst other fiscal challenges faced by the states. Economists warn that this could lead to reduced funding for critical infrastructure and social services if not addressed through strategic financial planning and federal support.

India has increased its purchase of Nigerian crude oil, strengthening bilateral trade ties, while the Dangote Refinery has resorted to importing crude oil from the United States to meet its operational demands. This development raises questions about the adequacy of local crude supply for the refinery, which is one of the largest in Africa. Analysts suggest that this dual dynamic reflects both opportunities for export revenue and challenges in domestic production capacity.