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CBN not happy over debt servicing as FX reserves drop $2bn

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Nigeria’s gross foreign exchange reserves fell by $2.57bn from January to March 2025, marking a 6.29 per cent decrease over the three-month period.

This was revealed in external reserves data available on the website of the Central Bank of Nigeria.

Earlier this week, the CBN attributed the decline in the country’s foreign exchange reserves during the first quarter of 2025 to the burden of foreign debt servicing.

On January 2, 2025, Nigeria’s foreign exchange reserves stood at approximately $40.88bn but dropped to $39.72bn by the end of the month.

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By the end of February, the reserves fell further to $38.42bn, representing a decline of $1.3bn within one month, equivalent to a 3.27 per cent decrease.

The downward trend continued into March as the reserves dropped to $38.31bn by the end of the month. This represents an additional reduction of $110m, translating to a 0.29 per cent decline compared to the previous month.

The combined month-on-month decreases led to a total quarterly drop of $2.57bn, representing a cumulative decline of 6.29 per cent over the first quarter of 2025.

Despite the strong reserves position at the end of 2024, the first quarter of 2025 witnessed a reversal, primarily driven by the need to service foreign debts.

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The CBN noted that the first quarter figures reflected seasonal and transitional adjustments, including significant interest payments on foreign debt.

These obligations have been a consistent pressure point, leading to a drawdown of reserves despite the improvements observed in the preceding quarter.

In a statement, the CBN said, “Reserves have continued to strengthen in 2025. While the first quarter figures reflected some seasonal and transitional adjustments, including significant interest payments on foreign-denominated debt, underlying fundamentals remain intact, and reserves are expected to continue improving over the second quarter of this year.”

Data from the CBN revealed that Nigeria’s total debt service payments amounted to $540m in January 2025 and $276m in February 2025.

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This means that a total of $816m was spent on foreign debt servicing in the first two months of the year.

The significant outflow in January was attributed to scheduled foreign debt repayments, creating substantial pressure on the reserves.

The reduction in February’s debt servicing to $276m provided some respite, but high debt obligations continued to weigh on reserve levels.

Despite the decline in the first quarter, the CBN remains optimistic about a rebound in reserve levels as oil production improves and non-oil FX earnings are expected to rise.

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The apex bank expressed confidence that improved oil production levels and a more supportive export growth environment would boost non-oil FX earnings and diversify external inflows.

The bank has reiterated its commitment to prudent reserve management, transparent reporting, and macroeconomic policies that aim to stabilise the naira, attract investment, and build long-term economic resilience.

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ISWAP commanders reportedly clash, many feared dead

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Some Islamic State West Africa Province, ISWAP, fighters in the Timbuktu Triangle, have reportedly been killed after rival commanders turned their weapons on each other over a disagreement on a planned attack.

A counter-terrorism expert, Zagazola Makama disclosed this in a post on X.

Zagazola said the clash occurred after a heated dispute between senior field commanders over the conduct of an operation that had been scheduled for the previous night.

He revealed that one of the commanders, identified simply as Abu Ali, reportedly refused to allow fighters under his control to participate in the planned attack.

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Ali’s decision was said to have angered another senior commander, who accused him of deliberately frustrating the operation and questioned his loyalty to the group.

According to Zagazola, the dispute was not an isolated disagreement but the culmination of weeks of rising tension among commanders over operational decisions, dwindling resources and the management of logistics inside the enclave.

It was gathered that the refusal to approve the planned attack merely exposed deeper grievances that had been building within the organisation, with rival commanders increasingly competing for influence, manpower and control of supplies.

The Timbuktu Triangle has for years remained one of ISWAP’s principal operational bases, serving as a sanctuary for commanders, training camps and logistics hubs from where attacks are coordinated across parts of the Lake Chad Basin.

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NSCDC Intercepts 45,000L Of Suspected Illegal Ethanol, Nabs Three In Akwa Ibom

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The Nigeria Security and Civil Defence Corps (NSCDC), Akwa Ibom State Command, has arrested three suspects and impounded a tanker loaded with 45,000 litres of ethanol suspected to have been illegally acquired.

The State Commandant, Mrs. Geraldine Abetianbe, disclosed this while briefing journalists in Uyo.

She said the arrest and seizure were carried out on Tuesday at about 1:00 p.m. by operatives of the command acting on credible intelligence at Ikot Umo Essien, along Aba Road, in Essien Udim Local Government Area.
‎”On June 23, at about 1300hrs, our operatives acting on credible intelligence intercepted a petroleum tanker at Ikot Umo Essien, along Aba Road, in Essien Udim Local Government Area of Akwa Ibom State.

“The tanker, with a capacity of 45,000 litres, was laden with a product suspected to be ethanol acquired illegally.

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“Three suspects were arrested at the scene in connection with the act,” Abetianbe said.

The commandant explained that the arrest of the suspects and seizure of the tanker were based on reasonable suspicion of the illegal acquisition and transportation of petroleum products in the state.

She said the suspects presented a waybill during interrogation, but the document immediately raised suspicion due to several discrepancies. She added that further investigations and inquiries to verify the authenticity of the declared point of loading yielded negative results.

“This confirmed our suspicion that the product was not sourced through legitimate channels.
“Through synergy, mutual respect, and timely information sharing, we recorded this success,” she said.

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Abetianbe warned criminals against engaging in the illegal trade of petroleum products, describing such activities as not only criminal but also a form of economic sabotage that deprives the government of revenue, endangers lives through adulteration and explosions, and undermines national security.

She vowed that the NSCDC, as the lead agency responsible for the protection of critical national assets and infrastructure, would not relent in carrying out its mandate.

“We shall continue to go after vandals, illegal bunkerers, product adulterators, and all those who engage in diversion and illegal transportation of petroleum products,” she said.

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Tension as ISIS releases video of top military grade weapons captured in Niger

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A video allegedly released by the Islamic State, ISIS, following an attack on a Nigerien military base in Inates has surfaced online, allegedly showing a cache of military-grade weapons seized during the raid.

In a sighted video which has circulated on social media, appears to show heavy weapons, including artillery rockets, machine guns and anti-aircraft guns, reportedly captured from the military installation.

The footage was shared on Sunday by Bakatsine, a journalist known for reporting on conflict and insecurity in Nigeria’s North-West region.

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The authenticity of the video and the exact quantity of weapons displayed have not been independently verified.

Bakatsine said that the development has raised fresh concerns over the growing capabilities of terrorist groups operating across the Sahel, where jihadist organisations have intensified attacks against military targets in recent years.

Security analysts have repeatedly warned that weapons captured during such attacks can significantly strengthen insurgent groups and fuel further instability across the region.

According to the report, although there is no evidence that the weapons shown in the video have been moved into Nigeria, experts have long warned that the porous border between Niger and northern Nigeria allows the movement of fighters, weapons and logistics.

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Bakatsine warned that terrorist groups operating across the Sahel and the Lake Chad Basin are also known to maintain operational and logistical links, increasing concerns about the potential regional impact of such seizures.

The attack on the Inates military base underscores the persistent security challenges facing countries in the Sahel, including Niger, Mali and Burkina Faso, where extremist groups continue to target military installations.

The incident has renewed calls for stronger intelligence gathering, improved border security and closer regional cooperation to prevent terrorist groups from acquiring additional military hardware.

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