₦airaland Forum

seunmsg:
If you still can’t understand after my explanation, I can’t help you any further. There is no where in the contract where $12b was written.

In the details seen by TheCable, Nigeria pledged a total of 164.25 million barrels of crude oil — at 90,000 barrels per day — starting from 2024 to repay the loan through Project Gazelle Funding Ltd, an “orphan” special purpose vehicle (SPV) incorporated in Bahamas for the PxF.

Effectively, the NNPC has pledged 38.58 percent of five years’ worth of tax and royalty oil to secure the loan.

Nigeria pledges over $12 billion worth of oil
At the beginning of 2024, a barrel of Nigerian oil was sold at the international market at $77.93 per barrel, according to the Central Bank of Nigeria (CBN) data.

At $77.93 per barrel, the 164.25 million barrels of oil pledged by Nigeria equals $12.8 billion — about three times more than the facility taken.

seunmsg:
Stop behaving like an illiterate. That is a fucking pledge. The $12b calculation was done by The Cable at the market price when they published the story and it is not written anywhere in the contract agreement. What is in the contract is a pledge of $90k bpd for five years and not $12b. The Cable simply calculated $90x365x5 to arrive at over 164million bpd and then times it by the market price. That is there own calculation based only on the crude oil that will satisfy the lower market price that the contract was negotiated on which is different from the actual.

Once the $3b principal and 11% annual interest is repaid the loan ends. Everything is dependent on the market price.

Read the story from vanguard for better understanding and stop wasting my time.

https://www.vanguardngr.com/2024/01/understanding-project-gazelle-3-3-bn-crude-loan-from-afrexim-is-short-mid-term-solution-to-fx-shortage/amp/

seunmsg:
Stop behaving like an illiterate. That is a fucking pledge. The $12b calculation was done by The Cable at the market price when they published the story and it is not written anywhere in the contract agreement. What is in the contract is a pledge of $90k bpd for five years and not $12b. The Cable simply calculated $90x365x5 to arrive at over 164million bpd and then times it by the market price. That is there own calculation based only on the crude oil that will satisfy the lower market price that the contract was negotiated on which is different from the actual.

Once the $3b principal and 11% annual interest is repaid the loan ends. Everything is dependent on the market price.

Read the story from vanguard for better understanding and stop wasting my time.

https://www.vanguardngr.com/2024/01/understanding-project-gazelle-3-3-bn-crude-loan-from-afrexim-is-short-mid-term-solution-to-fx-shortage/amp/

seunmsg:
lol. To start with Buhari started taking the loans after COVID-19 global pandemic. There was a global lockdown and economic slowdown that caused crude oil to go as low as $1. Despite the crash in Revenue, Nigerians kept asking for more. Petroleum subsidy must be funded. University education must remain free and fully subsidized. FG must keep giving free money to the poor under the social investment scheme. Electricity subsidy must continue. FG workers must be paid regularly. Payroll support to struggling businesses was approved. The exchange rate as at that time must remain pegged at N460 and not be floated. Insurgency and banditry must be combated. Etc.

So, where do you guys think the money was coming from? The moon? Agulu? You jokers don’t know shit about anything. It’s even funny you’re asking me about the economic impact of a $3billion loan on a country of over 220 million people who want every damn thing to be free. Do you guys even know what you’re talking about?

See, Nigeria is a poor country and there is no magic anyone can do except we brace up and implement stringent but painful reforms to expand our economy. Crying and pointing fingers won’t solve anything. Get behind the president’s reform agenda and let’s change the economic trajectory of the country together.

Brendaniel:
Can you show me where the bolded is clearly written like what I provided to back up my claim ?

seunmsg:
Everything is in the link I provided. Read buddy, read.

Brendaniel:
What you posted there is different from loan, I understand what is written there, the case here is Nigeria is paying for a loan with crude oil and the agreement was specific on the number of barrels with the number of months, no where in the agreement did they talk about price of the barrel of the crude.

The agreement was stated clearly, it was the same reason Atiku and other stakeholders were shouting against the loan...

Are you trying to say that they did not understand the terms and agreement written in it?

seunmsg:
Read the last screenshot, you will see the price of the Afrexim loan. 90k is the pledge barrel daily for 5 years at $65 pb. Crude is around $75 for sometime now so we are doing very well. If price remains over $70, we will pay back the loan and interest before getting to the total pledge crude amount.

Brendaniel:
That is what I am still telling you, the value of the amount we are paying back is the koko, do the maths now...

So even if crude sells at 300$ per barrel and we pay the loan faster it means Nigeria still loses the same value of money to the loan, that value remains constant since they have pegged it at 65$ per barrel...

No matter how you calculate it, Nigeria will still pay about 10 billion dollars back in total for about 3 billion dollars loan....

You guys are just supporting Tinubu because of tribalism...

7 billion dollars that would change a lot in Nigeria is what Tinubu has used for immediate gains of 3 billion dollars that the citizens are yet to see...

Look at the maths below, now imagine other loans he is taking with their terms and conditions....

seunmsg:
You are getting it wrong. Read the attached screenshot again, especially the colored part. We won’t pay the total pledge amount of crude oil in as much as price is above $65. The goal is to repay the principal and interest quickly and not to take out all the pledge crude oil. If price remains higher than the contract price of $65, we are going to repay fully before 5 years and we don’t have to give them all the pledge crude oil.

seunmsg:
lol. To start with Buhari started taking the loans after COVID-19 global pandemic. There was a global lockdown and economic slowdown that caused crude oil to go as low as $1. Despite the crash in Revenue, Nigerians kept asking for more. Petroleum subsidy must be funded. University education must remain free and fully subsidized. FG must keep giving free money to the poor under the social investment scheme. Electricity subsidy must continue. FG workers must be paid regularly. Payroll support to struggling businesses was approved. The exchange rate as at that time must remain pegged at N460 and not be floated. Insurgency and banditry must be combated. Etc.

So, where do you guys think the money was coming from? The moon? Agulu? You jokers don’t know shit about anything. It’s even funny you’re asking me about the economic impact of a $3billion loan on a country of over 220 million people who want every damn thing to be free. Do you guys even know what you’re talking about?

See, Nigeria is a poor country and there is no magic anyone can do except we brace up and implement stringent but painful reforms to expand our economy. Crying and pointing fingers won’t solve anything. Get behind the president’s reform agenda and let’s change the economic trajectory of the country together.

Brendaniel:
That is the same thing I am telling you, do you understand mathematics at all?

Price is pegged at $65 per barrel to be paid in 5 years at 90,000 barrels per day...

Let's say price now increased to $130 per barrel, if it remains at $130 for the next 2.5 years, the entire debt will be cleared because of the sharp difference in the pegged price and the increase but you are forgetting that the value remains the same:

Do the maths:

Nigeria will still pay the same 10 billion dollars for 3 billion dollars loan

Perfectbeing:
It's so sad that I saw this thread a year later.

But if you remove hate from your eyes, whatever was written there was in black and white. Audible to the deaf and visible to the blind.

If oil price increase, the extra amount will be kept by the seller/company/Nigeria not the lender/Afriexim bank.

I even had to use ChapGPT to see if I wasn't confusing myself, and here was what the AI said.

Brendaniel:
It is clear you didn't read the terms of the contract, go and read the terms of the contract before coming back to reply me...

Perfectbeing:
I'm only replying to what I can read in the screenshot that you're arguing with.

That screenshot is black and white. It is very clear.

And I'm sure you haven't seen any contract. Whatever you know about project gazelle is what you've read on the news just like me.

Brendaniel:
The screenshot I posted was just calculation, read the news here and help yourself, you guys just display so much arrogance mixed with ignorance

https://www.nairaland.com/7958474/nigeria-pay-11.85-interest-3.3bn

Perfectbeing:
Oga, the Cable's report is their (Cable news) own interpretation of the Project Gazelle, that's why it's called an "exclusive".

The Vanguard report is the clarification of the issues surrounding project gazelle. This clarification was done by NNPCL themselves through their Chief communication officer, Femi Soneye.

My main argument with you was that your argument on the screenshot of Vanguard which was as clear as daylight. You looked people in the eyes and lie.

What the report (the screenshot from vanguard) said was different from your interpretation. You were literally calling black white because of hate.

Brendaniel:
What you sent now has no detailed explanation like what the cable gave, I need detailed explanation not praises

Perfectbeing:
This is the clarification from NNPC that you were arguing with.

Read it again, line by line. Anywhere you don't understand, screenshot it and post it in an AI so the AI will explain simple English to you.

https://www.vanguardngr.com/2024/01/understanding-project-gazelle-3-3-bn-crude-loan-from-afrexim-is-short-mid-term-solution-to-fx-shortage/amp/

Brendaniel:
I've read the contract part and I have explained this before, it still doesn't remove the fact that Nigeria may still lose almost 9 billion dollars for that loan, the calculation I did covers payment at a static prize.

If you notice throughout the contract they never stated an amount that will be paid back, instead only in barrels and those barrels have to be met with a benchmark 0f 65$ per barrel, the calculation I did used the benchmark throughout the period of the loan which still brought the figure of about 11 billion dollars, so the loss does not have to do with price change.

go back and read what I read what wrote there with screenshots

https://www.nairaland.com/8184573/buhari-administration-used-crude-mortgage/1#131511142

Nigeria is still paying about 11 billion dollars in value whether price changes or not because the payment is pegged at 65$ per barrel with a total amount of crude oil to be sold.

Perfectbeing:
My first screenshot matters.

What Cable news provided wasn't the contract but their opinion on the contract.

The NNPC Chief spokesman has explained the contract (in the vanguard link I sent)- he explained how the payment is, and that's what I'm going with.

Good bye.

seunmsg:
Cancel the deal how? So you think the president can wake up one day and cancel Nigeria’s loan obligations?
See, it’s a loan and we have to pay back with crude oil. It is nothing new as the Tinubu administration also took a similar loan from AFREXIM Bank last year. We are a responsible country and we must fulfill all our sovereign obligations.

Brendaniel:
It doesn't still change the fact that the value Nigeria will pay back in crude oil is about 11 billion dollars at 65$ per barrel