₦airaland Forum

michlins:
This is good news but it begs for more explanation.


It's often being paraded by APC apologists that the reason Tinubu floated the Naira is because the government spends $2bn monthly to defend the Naira. If that's the case,so we just waited for months to get a loan for one month intervention and we're celebrating it now as if we won a lottery ticket.



When you hear the explanations from APC apologists and try to make sense of it with reality, you begin to wonder why we should be going to school at all. Because it's almost as if we don't learn anything.

TSA account by Buhari and how it saved trillions also comes to mind. ASUU had to go on strike for this particular issue but eventually,it had no impact on corruption fight and insecurity (which are the advertised gains)

More problem we have in this country many of you guys been an antagonist is not doing this for the sake of the country. Its selfishness and evil to be on this part, there is room for criticism but to sell your ideas based on political affiliations or tribal sentiment is a very big issue.
You yourself know you are not telling yourself the truth or rather you lie to your conscience but continue as long as it makes you happy, no issues.

MT:
First of all it is not a loan but a legal business transaction.

Let me explain what happened to you. It is quite smart and novel.

They do not intend to use the dollars to.prop up dollars like you thought or imagined.

They collect that dollars ahead of crude oil export in order to sell at the agreed exchange rate to oil importers.

Let me break it down.

When the agreement was made, let's say the dollar was being exchanged at 700 naira. The transaction is premised on that.

Now with the money in the hands of FG, even if dollars sell at 2000 naira to one dollar, the FG will be able to sell to the legal importers at the rate of 700 naira.

Therefore, the importers do not need to seek for dollars at the black market, which will ultimately worsen the strength of the naira.

It is novel, give credit to where it is due, and give them a knock where they deserve it.

According to your explanation, if I have a palm tree on my land, and then promised someone that the oil from it over a duration is a collateral to collect a certain amount from them, then it’s not a loan.

The only condition that would exempt that transaction from being an actual loan is, if there is no interest over the duration of payment.

But you see this very move, it is not a very wise one now that the world is experiencing energy shortage. Prices of crude will increase but Nigeria won’t benefit from it. They have only mortgaged the future of this country. Think about what will happen in subsequent years when they won’t be proceed from oil due to this transaction. Even with oil money Nigeria is barely surviving, how much more when the money is no longer coming in.

It would be fair to make a balanced observation. If the money is put to judicious use, it might help. But not with the way the leaders spend. Petrol alone on 30 heavy SUV convoys for just one month will take most of that money. Just last month over #500M was spent on attending the climate submit, by a group of people with no actual purpose or direction.

MT:
I am not here to discuss sustainability.

That is for the experts who are privy to certain classified information to determine.

I can't just throw blanket statement carelessly.

I am just saying it's not a loan as being ignorantly circulated.

Bro it is not a careless blanket statement even the MD of African Development Bank warned that backing loans with natural resources is not sustainable. The people who are the winners in this deal are Afrexim, Sahara and UBA.

Angelfrost:
The guy just dey roll out explanations upandan, most which make absolutely no sense even to himself.


I can never envy the online defenders of cluelessness... It's an unenviable job.

You are simply impossible.

I thought we were having intellectual discourse, where you would pick holes intelligently in what was earlier explained.

Instead, you had purposed in your mind not to be open minded. Changing your position in the face of fact does not make you a weakling.

If you have issues with what was explained, you could have pointed it out, and we will all learn from it.

I'm sorry for misjudging who you are and your intent.

If it dips, buy the dip!!!! I won't say more than that. If it drops to even 900 naira to 1USD pere, I'm buying 5m worth of USD straightaway.

flexyrule:
Bat should use borrowed money, that Niger Delta oil was used as collateral, to develop the SOUTH West.

This country ehn. The day the ND will open their eyes and wake up to this injustice, that will mark the end of this unscrupulous marriage instituted by Lord Luggard.

This is wicked!

sonnie10:
According to your explanation, if I have a palm tree on my land, and then promised someone that the oil from it over a duration is a collateral to collect a certain amount from them, then it’s not a loan.

The only condition that would exempt that transaction from being an actual loan is, if there is no interest over the duration of payment.

But you this very move, it is not a very wise one now that the world is experiencing energy shortage. Prices of crude will increase but Nigeria won’t benefit from it. They have only mortgaged the future of this country. Think about what will happen in subsequent years when they won’t be proceed from oil due to this transaction. Even with oil money Nigeria is barely surviving, how much more when the money is no longer coming in.

It would be fair to make a balanced observation. If the money is put to judicious use, it might help. But not with the way the leaders spend. Petrol alone on 30 heavy SUV convoys for just one month will take most of that money. Just last more, over #500M was spent on attending the climate submit by a group of people with no actual purpose or direction.

Thank you for your analysis.

You are worth responding to as you critically analysed the issue, and you are civil as well.

One, it doesn't attract interest as it is a business transaction. Nigeria is not borrowing it

Second, like you mentioned, petrol price could go up in international market and Nigeria would have lost out as we have sold at cheaper price to Afrimex.

However, look at this way too. With this deal, Nigeria doesn't need to prop the naira by depleting our foreign reserve, and the importers could have access to cheap dollars at the time the dollars would have gone up.

Also, Naira position will not be worsened as most forex demands from the importers would have been catered for by the fund.

Fuel price will not go up in the country as well, as that is one of the conditions before you can access the fund.

Nigeria can also benefit from increase in oil price from other crude oil being exported.

There are are always pros and cons to everything but in my considered view, I think the pros outweigh the cons.

My opinion

MT:
You are simply impossible.

I thought we were having intellectual discourse, where you would pick holes intelligently in what was earlier explained.

Instead, you had purposed in your mind not to be open minded. Changing your position in the face of fact does not make you a weakling.

If you have issues with what was explained, you could have pointed it out, and we will all learn from it.

I'm sorry for misjudging who you are and your intent.

Intellectual Discourse?!!

Now, you are being ridiculous.

An intelligent person would have seen the SARCASM in my reply to your last poor attempt to defend the indefensible.

Omalicious1:
The money shall be embezzled and nothing will happen.

Shall?!! Money wey dem don already share finish.

Just one of the everyday propaganda of the clueless illegitimate Government of the criminal impostor.

You can't sustain or revive a nosediving economy with propaganda.

MT:
You are not making sense with what you have put in here.

What has PhD got to do with this ?.

I have criticized this government on this platform.

When you see an exemplary thinking, appreciate it. Don't see bad in everything.

I am not a politician. I do not belong to any political party, but I applaud good, creative thinking.

I am not defending the fact that the money can be looted.

My scope is applauding the thinking behind the deal.

You wrote long epistle with no content.

Stop being a cynic.

You may want to stop postulating and accept that your position is hollow, devoid of logic, condescending to us and patronizing those in government.

Why would you praise as "novel" and "smart", a regurgitation of the same evil practice Nigerians are still smarting from?.

Round tripping our absolutely meagre fiscal resources to be siphoned into private pockets is smart and novel to you.

Perhaps your mind has convinced you that we do not understand the English language.

No, sir, you said nothing. And your choice of colorful words in an attempt to obfuscate an obvious absurdity is both odious and offensive to some of us.

olumike001:
More problem we have in this country many of you guys been an antagonist is not doing this for the sake of the country. Its selfishness and evil to be on this part, there is room for criticism but to sell your ideas based on political affiliations or tribal sentiment is a very big issue.
You yourself know you are not telling yourself the truth or rather you lie to your conscience but continue as long as it makes you happy, no issues.

tell me the truth sir

The minister of finance look like someone who knows what he is doing.till next year,we will know how the direction of this government will look like.

More rubbish coming from a corrupt thieves.

GeneralDae:
No loan has ever been disbursed previously.

The NNPC took a loan to support the Naira previously which raised so much dust just few months into Tinubu regime or have you forgotten?

MT:
Thank you for your analysis.

You are worth responding to as you critically analysed the issue, and you are civil as well.

One, it doesn't attract interest as it is a business transaction. Nigeria is not borrowing it[/quote]Second, like you mentioned, petrol price could go up in international market and Nigeria would have lost out as we have sold at cheaper price to Afrimex.

However, look at this way too. With this deal, Nigeria doesn't need to prop the naira by depleting our foreign reserve, and the importers could have access to cheap dollars at the time the dollars would have gone up.

Also, Naira position will not be worsened as most forex demands from the importers would have been catered for by the fund.

Fuel price will not go up in the country as well, as that is one of the conditions before you can access the fund.

Nigeria can also benefit from increase in oil price from other crude oil being exported.

There are are always pros and cons to everything but in my considered view, I think the pros outweigh the cons.

My opinion[/quote]

Bulaba the pint sniffer sorry money sniffing drawgie!

Jestin:
Tinubu Nose is already sniffing the money 😂

Sniff Lord Bulablu blue blue is on stage to give a masterpiece!

How to sniff version 2

Angelfrost:
Intellectual Discourse?!!

Now, you are being ridiculous.

An intelligent person would have seen the SARCASM in my reply to your last poor attempt to defend the indefensible.

You claimed to be intelligent but you took the arrangement as a "loan" and still thought the money would be used to "prop" the naira

So much for your intelligence.

My last piece to you

sonnie10:
You

All these articles call it a loan

MT:
Thank you for your analysis.

You are worth responding to as you critically analysed the issue, and you are civil as well.

One, it doesn't attract interest as it is a business transaction. Nigeria is not borrowing it

Second, like you mentioned, petrol price could go up in international market and Nigeria would have lost out as we have sold at cheaper price to Afrimex.

However, look at this way too. With this deal, Nigeria doesn't need to prop the naira by depleting our foreign reserve, and the importers could have access to cheap dollars at the time the dollars would have gone up.

Also, Naira position will not be worsened as most forex demands from the importers would have been catered for by the fund.

Fuel price will not go up in the country as well, as that is one of the conditions before you can access the fund.

Nigeria can also benefit from increase in oil price from other crude oil being exported.

There are are always pros and cons to everything but in my considered view, I think the pros outweigh the cons.

My opinion

We were forced to accept that Naira free fall was an intentional act of the economic maradona called Tinubu to favour Nigerians, why do we have to mortgage our future in order to support same Naira? Don't we need the favour again?

MT:
You claimed to be intelligent but you took the arrangement as a "loan" and still thought the money would be used to "prop" the naira

So much for your intelligence.

My last piece to you

You win...!

It's not a loan... It's just a business transaction never done before (Novel)... And they are not trying to prop the Naira.

We shall be here to hear and read further 'explanations' in 2024.

Happy Sunday.

My last piece too.

MT:
Thank you for your analysis.

You are worth responding to as you critically analysed the issue, and you are civil as well.

One, it doesn't attract interest as it is a business transaction. Nigeria is not borrowing it

Second, like you mentioned, petrol price could go up in international market and Nigeria would have lost out as we have sold at cheaper price to Afrimex.

However, look at this way too. With this deal, Nigeria doesn't need to prop the naira by depleting our foreign reserve, and the importers could have access to cheap dollars at the time the dollars would have gone up.

Also, Naira position will not be worsened as most forex demands from the importers would have been catered for by the fund.

Fuel price will not go up in the country as well, as that is one of the conditions before you can access the fund.

Nigeria can also benefit from increase in oil price from other crude oil being exported.

There are are always pros and cons to everything but in my considered view, I think the pros outweigh the cons.

My opinion

How would Dangote refinery affect this dynamics?

Hope they put the money to judicious use.

iyke2frankeze:
The NNPC took a loan to support the Naira previously which raised so much dust just few months into Tinubu regime or have you forgotten?

That's the loan that just came in now. The deal was only announced and secured then but they didn't receive it then.

Treadway:
If it dips, buy the dip!!!! I won't say more than that. If it drops to even 900 naira to 1USD pere, I'm buying 5m worth of USD straightaway.

🤣 We all go gather buy the dollar when it lands. I will not allow them to destroy the little savings that I have left in naira. A government that has no single plan for the future of this country.

sonnie10:
You are worth responding to as you critically analysed the issue, and you are civil as well.

One, it doesn't attract interest as it is a business transaction. Nigeria is not borrowing it





Second, like you mentioned, petrol price could go up in international market and Nigeria would have lost out as we have sold at cheaper price to Afrimex.

However, look at this way too. With this deal, Nigeria doesn't need to prop the naira by depleting our foreign reserve, and the importers could have access to cheap dollars at the time the dollars would have gone up.

Also, Naira position will not be worsened as most forex demands from the importers would have been catered for by the fund.

Fuel price will not go up in the country as well, as that is one of the conditions before you can access the fund.

Nigeria can also benefit from increase in oil price from other crude oil being exported.

There are are always pros and cons to everything but in my considered view, I think the pros outweigh the cons.

My opinion

Well done bros
You already finished the zombie MT
But I want to add that you shouldn't have given him so much regard as to post info available on the Internet which he refused to check out before making false claims and telling lies about the loan.

The fact that he's calling a futures contract novel and smart shows his lack of depth on the matter. Tinubu is not the first to engage in futures contract. Even Buhari did such but with our forex reserves with CBN.

The more important part of the whole thing is that what's happening is actually illegal. The NNPCL as a govt entity is expected to remit all its revenue to the federation account with the exception of its operating expenses. With this contract, a part of that revenue will go into servicing debt incurred by FG. That's illegal.

Secondly, the loan is being taken to solve fx issues. Fx issues are under the purview of the Central Bank and not NNPCL. In other words, Tinubu is robbing NNPCL to solve CBN issues. The obvious fault there is that there's nothing to gain for NNPCL. Such corporate mismanagement will scare more investors away as they'll see the govt as one that's being run in an inefficient and haphazard manner, that sees NNPCL as it's breaking a corporate code. Note also that most international investors refused to get involved in the deal and UBA, a Nigerian Bank is now giving its own country "foreign" loans. You see katakata so?

It is this illegal, uncoordinated and inefficient move that the zombie referred to as novel and smart and even lied that there's no interest involved as if Afreximbank offers zero interest loans.

These guys are hailing the destruction of this country while forming patriot. It's reprehensible

This is Multi- Dollars ($)Project!
Hope it's well utilised to provide Jobs,not just Housing for the Youths!
NIGERIANS should be taking the Records of these FOREX-coming into Nigeria and their utilisations!
No more excuses - that there is no money,please!

The real yahoo guys aka Nigerian politicians will be all smiles now owo, kudi, ego dne land for them to share as usual why the ordinary man continues to swim in the ocean of poverty created by the APc gang

AderonkeOlaniyi:
Another stipend collector

whatever.... I'm grateful for my life. If you don't believe in this country, not a curse, you will never do good in it.

Kukutenla:
Well done bros
You already finished the zombie MT
But I want to add that you shouldn't have given him so much regard as to post info available on the Internet which he refused to check out before making false claims and telling lies about the loan.

The fact that he's calling a futures contract novel and smart shows his lack of depth on the matter. Tinubu is not the first to engage in futures contract. Even Buhari did such but with our forex reserves with CBN.

The more important part of the whole thing is that what's happening is actually illegal. The NNPCL as a govt entity is expected to remit all its revenue to the federation account with the exception of its operating expenses. With this contract, a part of that revenue will go into servicing debt incurred by FG. That's illegal.

Secondly, the loan is being taken to solve fx issues. Fx issues are under the purview of the Central Bank and not NNPCL. In other words, Tinubu is robbing NNPCL to solve CBN issues. The obvious fault there is that there's nothing to gain for NNPCL. Such corporate mismanagement will scare more investors away as they'll see the govt as one that's being run in an inefficient and haphazard manner, that sees NNPCL as it's breaking a corporate code. Note also that most international investors refused to get involved in the deal and UBA, a Nigerian Bank is now giving its own country "foreign" loans. You see katakata so?

It is this illegal, uncoordinated and inefficient move that the zombie referred to as novel and smart and even lied that there's no interest involved as if Afreximbank offers zero interest loans.

These guys are hailing the destruction of this country while forming patriot. It's reprehensible

I don't know what you are saying. Previously when we had high production and without crude swaps, NNPC remitted billions of dollars to the CBN annually. There have been difficulty remitting since then. This is just like a forward remittance.

The only thing that should be questioned here is that the deal is not as transparent as I would want e.g how many barrels of crude was sold to Afrexim Bank and what was the nature of Afrexim's deal with the oil marketers?