webm:
Daft men celebrating.

In simple terms, they want to borrow money with future dividends that NLNG would make.

kushe:
The Nlng dividend would have been put to good use as part of the budget but now they have searched high and searched low,and now they are strangulating the goose that lays the golden egg.
We are only kicking the can down the road.
Our economy is already in tatters and moves such as this are mere pointers to the wise.

Fujiyama:


^^^

The 'intervention' exists because the administration is afraid of the political cost of a fully deregulated system - a system severely constrained by zero local refining capacity. As long as there is no local refining capacity, the problem is not going to go away. If the Dangote refinery and the Port Harcourt refinery do not deliver on schedule then this 'intervention' will become policy. I give it 4 months.

" As long as there is no local refining capacity" creates conjecture. Let's wait and see if there will be " no local refining" ( quotes are yours)

On the matter of fx reserves...the inflows from LNG dividend securitization aren't sustainable. After Q1 then what? The Naira takes a beating again and we securitize dividends from...Ajaokuta Steel Complex?

You know the face value and issue terms of the security already or you are guessing?


^^^
Dead assets?

Perhaps I missed something. My reading of this is that we are borrowing against future dividends. I see no evidence of balance sheet restructuring to liquefy hard assets. What non-current assets are being monetized here?

BreconHills:
It will be clearer soon. Be patient.

Fujiyama:


^^^


That would be suicidal.

FreeStuffsNG:


https://www.thisdaylive.com/index.php/2023/10/27/fg-moves-to-securitise-nlng-dividends-for-7bn-cash

mrvitalis:
First good step this administration has taken

Please don't use that money to pay salary or build infrastructure ooh


Use this money as credit facility for producers in import substitute and export oriented industry

FreeStuffsNG:
We have the best of the best brains among us leading this nation right now. Awa la ni eto se!! Gbabesky!

With unprecedented ingenious creativity, post-paid NLNG dividends of $7 billion just got unlocked like that!! Just like that!! Now you see how our brains built Lagos and the South West.

Nigeria is in the best hands and brains. We no go school go sell guguru and epa. We went to school hard and hard we studied whenever we remember that our education is being funded from owo oni iru and owo alata petty trading of our parents and forebears. We read in school as if all our lives depends on book. Nigeria is today reaping that knowledge we toiled to acquire with the sacrifices our parents made. God bless our parents and forebears.

Expect more unleashing of our ingenuity and patriotism. The bar will be raised so high that never again will someone with mediocre third class certificate of a trader step forward to become President and submit GCE o level certificate to INEC as his highest qualification then go out to hire liars, cyberbullies, tribal/religious bigots and criminal defamers to attempt to use to bully us.Never again!

Invest in Lagos and neighbouring Yoruba South West Nigeria states to get the greatest return on investment and best investor friendly experience today.
God bless Nigeria for ever! Check my signature for free stuffs!

FreeStuffsNG:
We have the best of the best brains among us leading this nation right now. Awa la ni eto se!! Gbabesky!

With unprecedented ingenious creativity, post-paid NLNG dividends of $7 billion just got unlocked like that!! Just like that!! Now you see how our brains built Lagos and the South West.

Nigeria is in the best hands and brains. We no go school go sell guguru and epa. We went to school hard and hard we studied whenever we remember that our education is being funded from owo oni iru and owo alata petty trading of our parents and forebears. We read in school as if all our lives depends on book. Nigeria is today reaping that knowledge we toiled to acquire with the sacrifices our parents made. God bless our parents and forebears.

Expect more unleashing of our ingenuity and patriotism. The bar will be raised so high that never again will someone with mediocre third class certificate of a trader step forward to become President and submit GCE o level certificate to INEC as his highest qualification then go out to hire liars, cyberbullies, tribal/religious bigots and criminal defamers to attempt to use to bully us.Never again!

Invest in Lagos and neighbouring Yoruba South West Nigeria states to get the greatest return on investment and best investor friendly experience today.
God bless Nigeria for ever! Check my signature for free stuffs!

blacksam01:
it will not work....the economy trend will suck that up nd return to dollar scarcity...

we dont hv enough foreign based businesses that repatriate FX back home..the dollar supply chain isnt strong dollar

BreconHills:


Fx demand has always been there. Subsidy is not being paid 100%. Its a short term intervention not a policy. In any case, the masses are still complaining.

BreconHills:


Intervention is predicated on the systematic imbalance in fx reserves. My feeling ( and this is my view) is that by end of Q1 we will see the impact of gradual asset monetization - the securitization of gas revenue is a start. Once we show appetite for our own assets, we will see inflow. I forsee N700-800 to the USD by Q2.

Asset monetization is the way to go. NG must unlock dead assets to create headroom. I am convinced that after the current triage measures we will see concerted efforts in this regard.

Fujiyama:


^^^

The 'intervention' exists because the administration is afraid of the political cost of a fully deregulated system - a system severely constrained by zero local refining capacity. As long as there is no local refining capacity, the problem is not going to go away. If the Dangote refinery and the Port Harcourt refinery do not deliver on schedule then this 'intervention' will become policy. I give it 4 months.

On the matter of fx reserves...the inflows from LNG dividend securitization aren't sustainable. After Q1 then what? The Naira takes a beating again and we securitize dividends from...Ajaokuta Steel Complex?



^^^
Dead assets?

Perhaps I missed something. My reading of this is that we are borrowing against NLNG [b]future dividends. I see no evidence of balance sheet restructuring to liquefy NLNG hard assets. What non-current assets are being monetized here? [/b]

pineed:

Very brilliant move! Kudos to the min of finance

IVORY2009:
I just hope this is not another propaganda by the Tinubu's government, because there is nothing they cannot do to impress the masses.

yeman05:
Nice move. I just hope that the days of audio moves are beyond us now. I just want the country to succeed. I care less abt who’s at the helms of affairs. I want Nigeria to be great. I pray always for the present administration. They will succeed with good intentions and will perish by themselves if they ever nurse any bad intentions toward the country. A Nigeria that works for all is all I crave. God bless the federal republic of Nigeria

Kukutente23:

Exactly!!
Dude is just using words he has no idea the meaning. His can you call borrowing against future earnings monetization of assets? Like how is that even remotely correct? They have so bastardised NNPCL they are now taking the template to NLNG which has remained largely untouched because it is being run as a private concern.
With this, you can expect political considerations tampering with NLNG going forward. CBN has been bastardised. NNPCL has been batardised. Now NLNG. All under APC!!

Bimpe29:
This makes economical sense. It's really going to be better for us as a nation.

pineed:

Very brilliant move! Kudos to the min of finance

BJanta:


O şee Omoluabi, wa pé láyé.

BJanta:


O şee Omoluabi, wa pé láyé.

It will not work for people like you, who all you think about is failure. People who are failure like you never never have any vision, but that of failure. Run away from someone who has never succeeded in anything in life, he will infect you with bad luck and failure. This is definitely one.

Fujiyama:


^^^
I am really waiting to see what the plan is - but BreconHills says I should just 'trust it', in the manner of Trump supporters. So far, things are not adding up...and the OP has scampered away - as usual.

At least 4 or 5 posters on this thread have read the tea leaves and delivered very clear warnings on what lies ahead. This is exactly how someone on a thread on this platform gave a warning in 2020? or so and said Nigerians had no idea of the pain that was going to hit the economy in a couple of years. Well...here we are. And that mysterious fellow has vanished completely without a trace.

We have a serious problem.

BreconHills:
2020? 2020?

You are talking about 2020. Our time frames are completely different.

Nigeria's problems run far deeper and longer than this.

BreconHills:
This is the problem with politically laced economic snapshots. Nigeria has had structural problems from the 70's. Those problems have metasized over time. No government in Nigeria has addressed the fragility of the economy since its inception. We had this same problem in 85, 96, 2008/9. In every instance people have been pointing fingers at the current government and not seeing the trend.

BreconHills:
The question for me is who do I trust to get the stage 3-4 cancer patient into remission? That's what this election is about. Is it Tinubu, Obi or Atiku. The majority have chosen Tinubu.

I also believe that of the three he is the best choice. You don't have to agree. But to weaponize the current state of the economy is intellectually dishonest. Nigerias problem is not how it has historically managed poverty but how it has historically managed plenty.

If you absolutely need someone to blame, blame those at the helm when the economy was "booming".

BreconHills:
You say Tinubu has no plan? I say he has. You say I should tell you what it is. I say wait let's get the patient out of triage first. If you can't wait - leave - its not like you have a lot of choice anyways.

Fujiyama:


^^^
Our time frames are not completely different. I referred to the fellow from 2020 just for context - he gave a warning then that seems eerily prescient now. There are others who are also giving similar warnings now, about the future consequences of today's reckless policy choices - and it is prudent to pay attention. That's all there is to it.

I am fully aware that Nigeria's problems didn't start yesterday. You can trust me on that.



^^^
Your last sentence would have resonated in 2015. But not now.

We are in the 9th year of APC government. The honeymoon is long over. The expectation is that by now, the APC should have (in visible shape or form) delivered the goods (or a good number of them at least) to Nigerians and changed the narrative. That hasn't happened....and that's why people are angry. People the world over elect politicians to solve problems...and they get angry when those problems remain unsolved. That's just the way it is.

I get that our economic problems began a long, long time ago. I know this. But...there are millions of angry young men (and women) in this country today who have absolutely zero interest in trend analysis or economic history. They just want their current problems to be fixed and that hasn't happened. And so who should they blame? A Yakubu Gowon, Olusegun Obasanjo, Sanni Abacha, Shehu Shagari etc. who are at best unknown, distant figures from history books - or a Bola Tinubu who is in power today, here and now?



^^^
You first error here is your reference to the last election. We have long passed that stage. BAT has been in power since 29 May 2023 - in 48 hours that will be 5 whole months in power. The constant reference to Atiku, Obi, Sowore etc. by supporters gives the impression that BAT's gaze is permanently fixed on the rearview mirror - a man stuck in perpetual campaign mode. Doesn't inspire confidence, does it?

Your second error here is the excuses being made for the man as his policies have hit the wall hard. BAT asked for this job. He did everything to get it. At no point did he issue disclaimers about how profligacy of prior governments would constrain his own ability to deliver. Instead, he made sweeping, grand promises - and he has so far been unable to deliver. Nigerians are now faced with the conflict between what they ordered and what they got - a classic case of buyers remorse of the political variety.



^^^


I can't just take your word that BAT has a plan. I go with the evidence - and what I see doesn't look good.

My skepticism has served me well. Last year I opposed the candidacy of BAT because I felt then (as I do even more now) that he was the wrong person for the job. Well...the courts have affirmed his election to high office. But the economy's verdict (so far) on his presidency is not a positive one. Time will indeed tell how he performs overall.

zionstaar75:
u go school at all?how is dividends loan?it means you've never had shares in any company in your life, pathetic

BreconHills:


Intervention is predicated on the systematic imbalance in fx reserves. My feeling ( and this is my view) is that by end of Q1 we will see the impact of gradual asset monetization - the securitization of gas revenue is a start. Once we show appetite for our own assets, we will see inflow. I forsee N700-800 to the USD by Q2.

Asset monetization is the way to go. NG must unlock dead assets to create headroom. I am convinced that after the current triage measures we will see concerted efforts in this regard.

Gilgil:
English! Very easy to speak.

But when it comes to the numbers i.e. mathematics, all that triage cr@p you are saying here would been seen for what it is BS!

Nigeria needs loads of $ in backlogs payments and to stay afloat.
Nigeria is owing over $100B.
Nigeria is spending over 96% of her revenue on paying back loans.
Nigeria has crude oil forward contracts already asking to be paid.
She goes to borrow another $10B to shore up the Naira t the expense of future earnings and this is not for capital projects that would generate more money ooh. So the debt cycle is broader now.

Do the math and not the English.

BreconHills:


So? Are you saying something that nobody knows? Yes the reserves are low, yes we have fx forwards, yes there is massive debt. But hang on mate...

Have Nigerian bonds been given junk status? Moody and Fitch are have it at B- Has Nigeria had to enter an IMF program to stave off insolvency? Do you even understand the scale of its informal economy? Do you understand that its main asset is not oil? In 1980's we entered the IMF SAP program - are we back there?

That's how some f.o.o.l was saying that MTN would fail before it even started business in Nigeria by simplistically analysing GDP per head. Yes things are bad, but this economy is by no means done.

I know you are desperate to bury Nigeria before she dies but sorry she is not dying anytime soon.