₦airaland Forum

THE National Assembly will be saving Nigerians from lots of economic distress if it evaluates and properly scrutinises the details of the transactions of the Nigerian National Petroleum Company Limited (NNPCL), $3bn emergency crude repayment loan from Afrexim bank, industry pundits have stated.

On Wednesday, August 16 2023, the NNPCL and Afrexim Bank jointly signed a commitment letter for an emergency $3 billion crude oil repayment loan.

The signing, which took place at the bank’s headquarters in Cairo, Egypt, will provide some immediate disbursement that will enable the NNPCL to support the federal government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market.

For many knowledgeable economists, the NNPCL’s poor reforms have pushed the country to a fiscal cliff while pushing Nigeria’s foreign exchange volatility further high.

Available records showed Nigeria’s major foreign exchange earning is from its oil resources, a situation that has made it steadily hinge its budgetary provisions on oil benchmark pricing.

The ICIR has earlier reported how the NNPCL kept shifting the goalpost on getting enlisted in Nigeria’s stock exchange, which could have offered it a platform to source for funds.

“NNPCL is borrowing to give to the federal government. As collateral, It’s is offering her future receipts. In essence, spending tomorrow revenues today,” a financial expert and development economist Kalu Aja said.

“The $3 billion you get today, you won’t get again, but it buys time for reforms,” he said.

Another development economist, Kelvin Emmanuel, believes the evaluation of the term sheet of the transaction by the National Assembly will save Nigeria from many economic problems.

“The National Assembly must review and ask specific questions on the deal. For instance, how many barrels of crude is involved in the swap, what is the duration of the swap, at what price was the swap deal consummated, what happens if crude oil price drops below the forward price, what happens if the crude oil price rises above the strike price, is the stock going out from Nigeria’s export quota?

“Other key questions to be raised by the National Assembly should also include: how will Federation Accounts and Allocation Committee FAAC audit the transaction to ensure NNPCL is transparent?

“If there’s no sovereign guarantee from CBN, what collateral did NNPCL use to secure the swap deal? What happens if there’s a force majeure on daily production volumes and the output is not sufficient to go around after deductions of JV cash calls?

Other key questions also include: Is Afreximbank going to send an irrevocable standing payment order (ISPO)to the NNPCL account with JP Morgan to debit payment from the source, until funds are liquidated?”

READ MORE HERE: https://www.icirnigeria.org/questions-national-assembly-should-ask-on-3bn-nnpcl-crude-oil-loan/

Which National Assembly are you referring to? Is it the rubber stamp National Assembly being led by Akpabio the king of thieves?

Chinjo2:
Which National Assembly are you referring to? Is it the rubber stamp National Assembly being led by Akpabio the king of thieves?

My thoughts exactly

Chinjo2:
Which National Assembly are you referring to? Is it the rubber stamp National Assembly being led by Akpabio the king of thieves?

u just nailed it bro.

NNPCL is a Private Organization, National Assembly can't ask a Private Organization about why they take a Loan.

Parachoko:
NNPCL is a Private Organization.

Owned by who??

TINUBU PLEASE STOP THAT LOAN.

Akpabio has nothing upstairs than how to loot money, he is good at that from his time as governor

olisaEze:
Owned by who??

Owned by the Private Sector.

Parachoko:
NNPCL is a Private Organization, National Assembly can't ask a Private Organization about why they take a Loan.

owned by who please?

Sometimes I am forced to believe you guys at BMC run on USB based rechargeable brains.

CodeTemplar:
owned by who please?

Sometimes I am forced to believe you guys at BMC run on USB based rechargeable brains.

Run by the Private Sector.

They don’t care about the masses so stop bothering yourself and move on with your life

Parachoko:
Run by the Private Sector.

appointed by public servants I guess. Rechargeable brain analysts.

CodeTemplar:
appointed by public servants I guess. Rechargeable brain analysts.

NNPCL is now a Private Organization

Parachoko:
Owned by the Private Sector.

Private sector na name of company??

olisaEze:
Private sector na name of company??

Nigerian National Petroleum Company Ltd

Parachoko:
Nigerian National Petroleum Company Ltd

Owned by who na??

olisaEze:
Owned by who na??

Shareholders

Parachoko:
Shareholders

Admitting that you don’t know won’t kill you my broda. Pretending to know when you don’t know will!