fergie001:


NNPC Limited

new cars , new apartment loading

Borrow borrow make me fine oooo. I dey laugh

Pierocash:
Ok

So they will keep borrowing to stabilize the naira abi?

Chai, too many mugus running the country

Lol

I'm tired mehn

skj1377:
The issue is not aboki but the fact that dollar inflow is sold to parallel market straight making the gov the only source that want to sell to the IE window. Best bet is to liquidate all domiciliary accounts in all banks in Nigeria them creat a deliberate parallel market for undocumented and unambiguous buyers while creating a gov artificial rate of N80 Naira to the dollar. A policy of strictly chemical and machinery as well as only industrial purposes to access this non cash rate. You will find out that machines and spares for industries will be cheaper including cars and cost of construction industry . Houses will be cheaper to build making life more affordable to Nigerians . The parallel market or cash market can be as high as N20,000 to $1 . This window will be for people that want cash to travel out or probably pay expatriates. This dual exchange rate system has to go along with domestic production of petrol and diesel as well as other petroleum by-products. Like I said the official exchange rate will be strictly for manufacturing and purchasing of parts and chemicals which will never be cash based. This will eliminate the possibility of round-trip. We all know that spares are not bought every day neither are chemical imputes so the pressure from the industries will be seasonal . . The people that require cash for many other reason can be based on the ability of demand and supply; floating. All profits from foreign coys can be repatriated by either they buy gold form osun state or zamfara state and export the cold abroad to get liquid cash. This will also help our mining sector. This is my advice and solutions

Emefele did d same under buhari, where forex is accessible to those traveling and those with import licences, the dollar still exchange at 750 against d 411 official rate , i think d best approach is to remove all restrictions on forex as we saw during GEJ tenure

Ikaeniyan0:
So is it the loan we take that's making our inflation rate high?

That's a very dump question. Does the country produce anything.. how will they be able to earn dollar when they supply the only source to pay back the loan. Most of you who support tinubu are empty skull

No Finance Minister, Nha NNPC dey stabilise naira now. Ehn? Kontinue

We are in trouble in this country. Nothing ever works in this country

a4cube:
As CBN or what?

I tire oo!

Brendaniel:
nairalanda1 I told you subsidy was not the problem of government borrowing, I told you subsidy removal will fail and they might still borrow which they are already doing even with more suffering on Nigerians, I told you corruption and high cost of governance is the major problem which Tinubu is not tackling and as long as he doesn't tackle it his government has failed even before it starts and will keep failing if he doesn't..

It is not a curse, Tinubu keeps putting the cart before the horse, he was the wrongest person to ever become president of Nigeria at this time, Nigeria has taken a total of about 4 billion dollars in less than 4 months without subsidy, coupled with increased tax and hardship on the people...

I have come to realise that APC supporters are the modern human encapsulation of Orwell's Animal Farm. Specifically, the sheep...

No supporter of the clueless drugbag seen on the first page.

That's surprising! Where are they

Let me check the 2nd page for those useless set of people.

I swear, there will be no rest for them on this forum

jydeskill1:
Right move. This will provide liquidity for more transactions non-oil transactions in dollars.

Mumu supporter seen!

Is this how you guys are going to build Nigeria?

By borrowing to defend the naira after floating it

Una no well

Taylor90:
At the end na still South South Oil them go use salvage the Mumu naira at the expense of our destroyed and damaged soil that that can’t grow a mere grass

Na we still dey suffocate with black soot all over Niger Delta while the barren region eat fat on our Mumu disunity

Omo Abeg I no wan vex this evening

You Don vex already.
Take heart
God help us

Pierocash:
Ok

So they will keep borrowing to stabilize the naira abi?

Chai, too many mugus running the country

What's your suggestion?

Blaze14k:


That's a very dump question. Does the country produce anything.. how will they be able to earn dollar when they supply the only source to pay back the loan. Most of you who support tinubu are empty skull

You're dull abeg

I don't know what my lovely Jagaban is still doing with this useless man called Kyari who worked with the most stupid government of PMB. PMB is the worst of all.

BAT should pls his men onboard fully instead of using some of this useless rags from the past government

Vex eranko

Taylor90:
At the end na still South South Oil them go use salvage the Mumu naira at the expense of our destroyed and damaged soil that that can’t grow a mere grass

Na we still dey suffocate with black soot all over Niger Delta while the barren region eat fat on our Mumu disunity

Omo Abeg I no wan vex this evening

Brendaniel:
nairalanda1 I told you subsidy was not the problem of government borrowing, I told you subsidy removal will fail and they might still borrow which they are already doing even with more suffering on Nigerians, I told you corruption and high cost of governance is the major problem which Tinubu is not tackling and as long as he doesn't tackle it his government has failed even before it starts and will keep failing if he doesn't..

The problem with your argument is that it kicks off with a strawman...and a very bad one at that.,with all due respect.

You assume that I state that subsidy is the only cause of government borrowing. That's not right. In my opinion we borrow because

1) We are a resource dependent nation that relies on oil, whose prices are never stable for us to earn enough.

2.) We also spend a lot of money paying for rising subsidy costs every year.

3.We are not good at collecting taxes.

All the above are why we borrow. And the APC was not good at improving any of the three. WHICH IS WHY I NEVER VOTE FOR THEM. (In capital letters because you folk assume I support the thieves in APC. I don't , and neither do I deny they are corrupt, and that they waste money. But even if we dealt with the corruption and waste...AND WE SHOULD...it still don't solve the net problem).

As for the NNPC borrowing money....they are doing it so that they don't ask the government. Remember also the PIA has been signed. NNPCL is now a private company (theoretically...practically is another matter). NNPC isn't earning enough dollars. It is still early days. Had Buhari removed subsides in 2021, this borrowing would have taken place earlier.

It still doesn't pay for subsidies...it is just NNPC getting some dollars to take the pressure off government. (Of course it would translate into higher prices for fuel, but that's called capitalism. Every company , even outside Nigeria sometimes has to take loans. ).

And NNPC is taking a loan from the bank to pay for imports of fuel...instead of them asking the government to dip into the reserves. Dipping into the reserves at this time is bad news.

Finally, Nigeria does not earn enough. See my point 1, and see why I do not support any of the parties, or the army men you love so much. None of them has ever done anything about diversifying Nigeria's economy...and yes, that includes Tinubu.

(And hot secret...I don't believe that the loan would stabilze the naira. It won't. WE are still not earning enough forex. That 's APC's fault...and to an extent PDP, and many a past government's fault. Years of failing to diversify have caught up with us. And I doubt Tinubu has any idea how to do it.).

It is not a curse, Tinubu keeps putting the cart before the horse, he was the wrongest person to ever become president of Nigeria at this time, Nigeria has taken a total of about 4 billion dollars in less than 4 months without subsidy, coupled with increased tax and hardship on the people...

Yes, and it is because of the above three points. And yes, our government needs to address those three points...plus fight corruption. But right now, we need money. If Obi took over or Atiku or anyone else took over, they would borrow. Especially since 99% of our revenue is going to debt servicing.


You guys should really pay attention to what I say and not what you think I say.

Ikaeniyan0:
You're dull abeg

No stay there when they spend d $3billion where will they get more dollar to fund there over bloated egos. Half of this money would probably be looted then u will find igbos to blame for the problem Nigeria is facing

Pierocash:
Ok

So they will keep borrowing to stabilize the naira abi?

Chai, too many mugus running the country

Too many mugu's indeed.

Blaze14k:


No stay there when they spend d $3billion where will they get more dollar to fund there over bloated egos. Half of this money would probably be looted then u will find igbos to blame for the problem Nigeria is facing

🐖🐖🐖

So we’re back to defending the Naira ? Las las this govt has no plans let alone a superior one to previous admins

Ikaeniyan0:
🐖🐖🐖

When u have nothing to say u act like u don't care and u find it difficult to take the truth. Empty block heads

And as usual the circle continues... Borrow and loot.. For how long will this help the naira? When it gets exhausted the climb continues.

if una no stupid for this country, make i know why

masseratti:
We cannot go on like this.. This is not the way out to stabilize the naira, the only solution is to go the way we did with fuel subsidy, no more special treatment, if you have a window the I and E window and a parallel market with two different rates in one economy, some privileged people who have access to the I and E window to buy Dollars will buy it at a lower rate and sell at the parallel market at an higher rates, also the world is no more in the 90s where market forces closes with banking hours, shut down the I and E windows, buy and sell the dollars at the going rates in the parallel market.. With that you have unified the exchange rates and allowed it to float freely, stop selling to the banks. If you have to sell to the banks sell at the aboki rates and buy at aboki rates.. The demand for dollars I can guarantee will go down 40% under just one week.. Thereby forcing the rate down...
The CBN honcos knows this, this is what we need not loans to defend the naira

It might be ok for short term but what happens when it's exhausted? It's a vicious circle.. Only way out is for CBN since they are the largest holder of the currency or the IOCs to buy and sell at the parallel market rates abolish the I and E window.. It's just a conduit for another round tripping.. That's what is causing the rise in dollars thereby triggering inflation.

There is nothing wrong with defending the naira. Everyone does it using various means. What is questionable is the source of funding. If it is low single digit then well....I believe it will be part of a package of measures. Hopefully.

The agreement between the Nigeria National Petroleum Company Ltd (NNPCL) and Afreximbank for a $3 billion crude oil repayment loan has several implications:

1. Financial Support: The loan provides immediate financial support to the NNPC Ltd and indirectly to the Nigerian government. It will help them address fiscal and monetary challenges by providing liquidity to stabilize the exchange rate market. This infusion of funds can assist in meeting immediate financial obligations and boosting the country's economic stability.

2. Exchange Rate Stability: The loan aims to stabilize the exchange rate market, indicating the commitment of both institutions to address currency volatility. A stable exchange rate is crucial for attracting foreign investment, promoting trade, and maintaining macroeconomic stability.

3. Economic Reforms: The agreement suggests that the Nigerian government is actively pursuing fiscal and monetary policy reforms. By seeking external financial support, they aim to implement necessary economic reforms to improve the overall economic climate, attract investors, and foster sustainable economic growth.

4. Confidence Boost: The partnership with Afreximbank signals international confidence in the Nigerian economy and its ability to implement reforms. It demonstrates that the country's efforts to address economic challenges are recognized and supported by reputable financial institutions.

5. Repayment Obligations: The loan agreement implies that the NNPCL has committed to repayment terms. This means that the funds received from Afreximbank will need to be repaid in the future, including any specified interest or fees. The exact terms of repayment will vary based on the termsheet and negotiation between the parties involved.

It's important to note that these implications are based on the provided information and general understanding of such agreements. For a more comprehensive analysis, additional details of the agreement would be required.

masseratti:
We cannot go on like this.. This is not the way out to stabilize the naira, the only solution is to go the way we did with fuel subsidy, no more special treatment, if you have a window the I and E window and a parallel market with two different rates in one economy, some privileged people who have access to the I and E window to buy Dollars will buy it at a lower rate and sell at the parallel market at an higher rates, also the world is no more in the 90s where market forces closes with banking hours, shut down the I and E windows, buy and sell the dollars at the going rates in the parallel market.. With that you have unified the exchange rates and allowed it to float freely, stop selling to the banks. If you have to sell to the banks sell at the aboki rates and buy at aboki rates.. The demand for dollars I can guarantee will go down 40% under just one week.. Thereby forcing the rate down...
The CBN honcos knows this, this is what we need not loans to defend the naira

It might be ok for short term but what happens when it's exhausted? It's a vicious circle.. Only way out is for CBN since they are the largest holder of the currency or the IOCs to buy and sell at the parallel market rates abolish the I and E window.. It's just a conduit for another round tripping.. That's what is causing the rise in dollars thereby triggering inflation.

As if you are not Nigerian, in theory you are right but it's practically impossible to stabilized the Naira like that. Coz that's what government is doing and failing

leokid866:
so you're saying your top money maker should not be involved in your monetary policies? 🤔.....what a wawu

I guess Aramco also borrows to hedge the Saudi riyal?

samwillyco1:
Fuel Subsidy with another name

Na only you get sense
Tinubu is simply bypassing the requirement of the law to submit a supplementary budget for subsidy.
Thus NNPCL is taking a loan which will be paid back from source of FG's crude sale. This is a tactical return to DSDP format just that in this case, CBN will administer it and not NNPCL.
Scam

fergie001:


NNPC Limited

Same people since 8yrs, you can’t borrow loan to stabilize currency exchange rates while your country economy is dead, we need to stop borrowing money and focus on internal growth and production we should have something to export not this economy that’s basically on importation of 98% of goods and services we need in this country that’s exactly what is shrinking the economy and politicians at the other hand milking all the money for their personal use, these things render the country useless

a4cube:
As CBN or what?

Thank for these millions Naira question, has NNPC constitute itself as ultimate government, or what power do they have to go and borrow on behave of Federal government to put money in their purse. Where is CBN and Ministry of Finance? Where is economic team that suppose to take charge of our economic policies.

[quote author=fergie001 post=125153218]

Nobody told me that CBN has rebranded as NNPC!