So, according to the report, NNPC has secured a $3 billion loan from Afreximbank to stabilize the naira and support the foreign exchange market. The loan is said to be repaid with crude oil at an interest rate of 8-11%.
They claimed that it will help Nigeria avoid seeking loans from the IMF and improve the value of the local currency.
Nigeria is on life support.
Because this is basically saying that Nigeria is giving out its most beautiful wife(Crude Oil) to Afrieximbank in exchange for $3b that will be used to stabilize Naira.
This means that the most beautiful wife(crude oil) might not be available to provide any support for Nigeria.
What type of gambling is this?
These APC guys can’t stop already?
1. The NNPC Ltd $3 billion Emergency Crude Repayment Loan from AFREXIM Bank simply means that an advance drawdown is being made on future sales of crude. Selling the ‘future’ to shore up the ‘now.’
2. But the question is, how long will this Naira stabilisation be done with drawdowns on future crude sales?
READ ALSO : 3 Main Reasons Nigerians should be Very Worried about the Judiciary.
3. If the FGN needs more USD inflows, then why is the FGN not doing the following?
(a) encouraging increased crude oil production
(b) eradicating/reducing crude oil theft
(c) increasing manufacturing and export of other commodities & products (solid minerals, textile, palm oil, sesame seed oil, dates, hybiscus, leather, shoes, timber, coal, automobile, services, etc.)
4. What formula was used to establish the $3 billion USD? What volumes and price discounts and commisions were applied?
5. What exchange rate target is that amount meant to achieve? For how long?
Most importantly:
6. What’s the guarantee that the $3 billion will be made available to the I&E window and not to politicians?
Policies like these are not intrinsically good or bad, the problem is that this is likely to end up where all the others have.
#AllEyesOnJudiciary
#AllEyesOnTheJudiciary
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