Afterall, Nigeria is not alone in this.

Saudi Arabia is seeking a bank loan of between $6 billion and $8 billion, sources familiar with the matter told Reuters, in what would be the first significant foreign borrowing by the kingdom's government for over a decade.

Riyadh has asked lenders to submit proposals to extend it a five-year U.S. dollar loan of that size, with an option to increase it, the sources said, to help plug a record budget deficit caused by low oil prices.

The sources declined to be named because the matter is not public. Calls to the Saudi finance ministry and central bank seeking comment on Wednesday were not answered.

Last week, Reuters reported that Saudi Arabia had asked banks to discuss the idea of an international loan, but details such as the size and lifespan were not specified.

The kingdom's budget deficit reached nearly $100 billion last year. The government is currently bridging the gap by drawing down its massive store of foreign assets and issuing domestic bonds. But the assets will only last a few more years at their current rate of decline, while the bond issues have started to strain liquidity in the banking system.

London-based boutique advisory firm Verus Partners, set up by former Citigroup bankers Mark Aplin and Andrew Elliot, is advising the Saudi government on the loan, the sources said.

The firm has sent requests for proposals to a small group of banks on behalf of the Saudi Ministry of Finance, the sources said. They added that banks participating in the loan would have a better chance of being chosen to arrange an international bond issue that Saudi Arabia may conduct as soon as this year.

A spokesman for Verus Partners was not immediately available to comment.

RATING CUT

Analysts say sovereign borrowing by the six wealthy Gulf Arab oil exporters could total $20 billion or more in 2016 - a big shift from years past, when the region had a surfeit of funds and was lending to the rest of the world.

All of the six states have either launched borrowing programs in response to low oil prices or are laying plans to do so. With money becoming scarcer at home, Gulf companies are also expected to borrow more from abroad.

In mid-February, Standard & Poor's cut Saudi Arabia's long-term sovereign credit rating by two notches to A-minus. The world's other two major rating agencies still have much higher assessments of Riyadh, but last week Moody's Investors Service put Saudi Arabia on review for a possible downgrade.

Nevertheless, bankers said a sovereign loan from Saudi Arabia could attract considerable demand, given the kingdom's wealth; its net foreign assets still total nearly $600 billion, while its public debt levels that are among the world's lowest.

The pricing of the loan is likely to be benchmarked against international loans taken out by the governments of Qatar and Oman in the last few months, according to bankers.

Because of banks' concern about the Gulf region's ability to cope with an era of cheap oil, those two loans took considerable time to arrange and the pricing was raised during that period.

Oman's $1 billion loan was ultimately priced at 120 basis points over the London interbank offered rate (Libor), while Qatar's $5.5 billion loan was priced at 110 bps over, with both concluded in January.

"The indications are that a Saudi deal would have to price higher than that, as the world has changed significantly since those deals," one Middle East-based banker said, referring to the rating agencies' actions.

Source: https://ca.finance.yahoo.com/news/exclusive-saudi-arabia-seeks-6-8-billion-bank-113251026--business.html

http://mobile.reuters.com/article/idUSKCN0WB0K1

I laugh in Chinese,the wailer are nothing but bunch of fools.can you see yer life nw??

Drastic fall in price of oil globally does not affect only Nigeria bt other oil dependent countries.

Despite Saudi privatized her property worth of over 200million$ some month ago,they still seek for loan.

I still bliv in PMB. .....



Fuk yee wailer.

The crash in oil price dealt a huge blow to the economies of oil producing countries, so much that even Saudi Arabia with a more diversified economy is seeking external relief from its aftermath, talk more of a country like Nigeria that's almost totally dependent on oil revenue.

However the sad and unfortunate truth is that Nigeria had a chance to save for the rainy day when oil sold for over $130 per barrel under the ineffectual buffoon Jonathan, who looted and wasted it on ogogoro and his failed re-election bid, while opening the barn for the rest of his goats to have their fill. Imagine, S/Arabia had $640 Billion in their own reserves as as October 2015.

Of course the wailers and iPod 'yoots' will always ignore this glaring fact and instead prefer to vent their frustration on PMB whenever he mentions borrowing to fund our deficits.

God bless President Buhari as he continues to clean up the mess of their defeated hero.

Is this supposed to console us or what? So our incessant borrowing should be justified just because Saudi Arabia borrowed as well. Please what is the state of economy compared to Saudis economy? We seem to be on the wrong part as a nation but will always look excuse to clinch onto.

Omo the guys above dey use 4G LTE of Ntel.... see speed.

Well to the topic, this goes to show that is not only Nigeria that is suffering from the Low Oil prices, for Saudi Arabia to be seeking external, how much more Nigeria?
And some people will just come and bash Buhari without thinking logically, just because they want him to fail. Whether you like it or not, he won't Fail!

Why didn't they go to Islamic bank?

Okay

Na wao.

afterall Nigeria is not alone in this

Lol

Real

Do you know that in the entire month of February there was no single terrorist attack in northeast Nigeria?
~ Do you know that many contractors have resumed and continued with abandoned projects?
~ Do you know as at yesterday TSA has 3 trillion Naira?
~ Do you know that NNPC has began to make profit?
~ Do you know that over N2 billion is now saved monthly from the removal of over 23,000 federal ghost workers?
~ Do you know that over N600 million is saved monthly from non subsidy payment?
~ Do you know in this short span of time how many Presidents have visited Nigeria and have shown interest in doing business with her and cooperating
in other things?
~ And my personal favorite do you know how many eYam eating goats have been cooling off in Mr Magu's lounge?
PMB is working let's be patient!

anigbajumo:

So

Saudi Arabia produces about 10million bpd of crude oil, at d peak of oil prices, oil sold for 140 dollars, Saudi generated 1.4billion dollars per day as revenue from oil sales, for a population of about 30million people. 1.4billion dollars per day.

Nigeria produces about 2million barrels per day, at peak oil price we got 280million dollars per day, for 170 million people.

Saudi arabia has requested for a loan to 'shore up her coffers', Nigeria has not yet made any formal request to anybody for any loan.

Do the maths, we are being lied to, there is no corruption in Nigeria relative to Saudi arabia, yet all we ever here from this government is 'anti corruption war, we are fighting corruption'

Government of lies!

Every country borrows money for one reason or another ( even the USA does) . So people saying that Nigeria is not alone in this may be right.
However, the point remains that our economy has almost collapsed. Just mention the areas that Nigeria excels on the world stage for now apart from pighting kwaruption. NEPA on strike, fuel queues back, bag of satchet water #150, etc etc.
Borrowing money without a good economic team to manage it will be a waste.

whereis this world moving to?even Saudi sef dey borrow

All oil dependent nations are affected by the low pric, when you hear what is happening in venezuela, russia and angola you will thank God you are a Nigerian

We better look for alternative exports to get FX cause it seems oil is cursed

naija can help

we have alot of "million dollars hiding around

According to Ipob's logic, Saudi has failed.

Meanwhile, Saudi Arabia’s foreign reserves is US$640 billion as of the end of October 2015.


@Amagunnerfan, what's your country's reserve?

So Saudi Arabia sef still dey borrow, na wah o

siraj1402:
Do you know that in the entire month of February there was no single terrorist attack in northeast Nigeria?
~ Do you know that many contractors have resumed and continued with abandoned projects?
~ Do you know as at yesterday TSA has 3 trillion Naira?
~ Do you know that NNPC has began to make profit?
~ Do you know that over N2 billion is now saved monthly from the removal of over 23,000 federal ghost workers?
~ Do you know that over N600 million is saved monthly from non subsidy payment?
~ Do you know in this short span of time how many Presidents have visited Nigeria and have shown interest in doing business with her and cooperating
in other things?
~ And my personal favorite do you know how many eYam eating goats have been cooling off in Mr Magu's lounge?
PMB is working let's be patient!

with all dis never pay my papa salary. #govt why u never pay police

So where are those blaming Buhari for our economic situation?

If oil price drop can affect Saudi Arabia.... Den naija ain't safe as well...

Even Saudi..??!! Wahala dey oo..

This is serious

"He who is not contented with what he has, would not be contented with what he would like to have

Even the mighty ones are feeling the heat.