₦airaland Forum

Adakintroy:
That lady was crying about affordability even with that amount of groceries. Read her post

Affordability is tied to minimum wage and unemployment rate for everyone, which is linked to crime rate.
Can you reason that relationship?

If T-Pain had crashed the price of petrol and dollars as promised more than 22 months ago when he hit the ground running, would we be crying about affordability now

anonimi:
I was replying to your comment of :

Nothing is expensive or cheap just things you cant afford

with this:



Are you able and willing to answer the above questions?

themanderon:
It's gonna get worse. The government has sold the future of the country. Nigeria as it is has no future at least not with these devils in power.

lexylaw40:
BusinessdayJan 4, 2024 8:18 PM

Afreximbank loan
Fresh facts seen by BusinessDay have unveiled the length at which Nigerian National Petroleum Company (NNPC) Ltd went to secure a $3.2 billion loan from the African Export-Import Bank (Afrexim).

This unique financing arrangement, dubbed “Project Gazelle,” is structured as a Special Purpose Vehicle (SPV)-based Prepayment Facility (PXF), backed by a crude oil allocation from the royalties and tax entitlements of the Nigerian government, a first of its kind in Africa’s biggest economy.

“The facility is uniquely backed by Production Sharing Crude (PSC) i.e. (Federation) Royalty and Tax Oil (1st of its kind),” a document detailing the deal between NNPC and Afrexim said.

Under PSCs, the companies usually pay royalties and taxes by giving the oil equivalent to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Inland Revenue Service (FIRS) respectively.

The NNPC in turn exports the oil on behalf of NUPRC and FIRS and remits the proceeds to the agencies.

This is part of the revenues paid into the federation account and shared by the three tiers of government.

However, under the PxF, the revenue from future oil production will be used to service the loan in the next five years.

“The objective is to use a structure that bridges the financing gap by making a prepayment for future deliveries of crude oil under Forward Sale agreements (FSAs) in line with the agreed crude oil allocation/delivery quantities,” the document added.


BusinessDay learned the collateral for the loan was based on barrels per day of crude oil from Nigeria’s royalties and tax entitlements which was structured based on prepayment for future deliveries through Forward Sale Agreements (FSAs).

“Up to 90 percent of excess cash (“Price Balance”) will be released to the Sponsor’s nominees’ accounts with the CBN, while 10 percent will go towards the prepayment of the facility,” the document said.

Further findings showed the repayment is expected to be over 57 months through equal quarterly instalments after a 3-month grace period while invitation for off-taker participation was pegged at a minimum ticket of $500 million

According to the Afreximbank-NNPC document, the loan facility was premised on NNPC Ltd recording an average liquid production of 528, 000 barrels of oil per day in 2021, which accounted for over 32percent of Nigeria’s total liquid production while the average gas production was 454,000 bpd, over 55 percent of Nigeria’s total gas production.

The document also showed NNPC Exploration and Production Limited (NEPL), a 100 percent wholly owned subsidiary of NNPC Ltd, had an average liquid production of 137, 000 bopd in 2021, accounting for over 8 percent of Nigeria’s liquid production while the average gas production was 124, 000 boepd, forming 15 percent of Nigeria’s total gas output.

“NNPCL’s contribution to Nigeria’s total liquid production is to increase from 32% to over c.40% by 2028,” the document said.

It also acknowledged an independent review which showed the upcoming production reserves that are under development comprise around 150 million barrels of crude that is split 46:54 between Independent Oil Company and indigenous production.

“NNPC Ltd is expected to receive an average net production entitlement of between 520,000 and 550,000 barrels of crude oil per day till at least 2027,” the document said.

The document also noted that there are no historical defaults by NNPC in any structured trade finance transactions.

NNPC Ltd had announced in August 2023 that the loan facility from Afreximbank was to support the federal government “in its ongoing fiscal and monetary policy reforms aimed at stabilizing the exchange rate market”, describing it as “a relief for the naira”.

It called the facility “crude oil repayment” with an upfront cash loan “against proceeds from a limited amount of future crude oil production”.

In the official market at the time, a dollar was worth, on average, N775 and, on the streets, N885.

As of January 4, 2023, the rates have changed to N1,035/$ (official) and N1,230/$ (parallel).

Nigeria’s outstanding forex liabilities are currently estimated at over $7 billion, according to findings by BusinessDay.

In an explainer after announcing the deal last year, the NNPC Ltd said its exposure is very limited, “covering just a fraction” of their entitlements and that “there are no sovereign guarantees tied to it”.

It said it “will also equip the Federal Government with the necessary dollar liquidity to stabilize the Naira, with limited risk”.

Quarterpast:
We are really suffering

OlofofoCorner:
Not all Nigerians are suffering.

Yourprick:
5 years ago this what you'll get for 30k

https://x.com/ife_treaty__/status/1239171296233218054?t=Wq7BIRc79UKPLZ7zxcp7ig&s=19[/quote]30k was my salary 5 years ago and I had a family to feed

Magnetic010:
You are not a sincere person- unless you share the payment of the electricity bill with another tenant, there is no way 10k will be enough to cover your supply(with your fridge and AC) for a whole month. I am currently on Band A in GRA benin city and i know how much i pay monthly. please let's all try to be sincere with our words...This country is the only country we have it is our civic responsibility to deman that our leaders put the necessary policies on ground to make life better for us all....Yes i think 100k might carry one sole individual for a month as long as you don't eat out and don't spend money on enjoyment(other fun things like cinema, or what not).

Sheuns:
15k now will get you just 1 chicken, 2 packs of juice and 1 tortilla bread.

Quarterpast:
Myself and household are suffering.
I'm personally going through hell. My life is at stake right now

Sheuns:
15k now will get you just 1 chicken, 2 packs of juice and 1 tortilla bread.

OlofofoCorner:
Sorry to hear that.

DatNiggaDaz:


Even your comment again shows that you are indeed a die hard BATist, all about being a BATist & BATists are absolutely irredeemable..

helinues:
Okay. Make una dey stuck then

Tooreda:
slowpoke at best.

richmond500:
This is not about BATist.
I use bandA electricity and I spend only 10k on electric bills for a month with AC, fridge, TV and bulbs.
The only expensive thing currently in Nigeria is rent.
Hence u can live comfortably with 100k salary

helinues:
Fastpoke, how far

Tooreda:
Take your uselessness to your family bro.

Smilleydr:
Taaaaaaaaaaaaaa..............

Tinubu just do us wayo, since I don dey see him eye dey blink inside his glass during this particular speech, I already know say na lamba.

MN07:
Speak for yourself and your yoruba people.

Sometimes I wonder what entity or creator is responsible for these yoruba people

Racoon:
"Take away their recruitment source, reduce their purchasing power and slow down the economy....." Says one drug baron and certificate forging crook.

Lithiumite:
I really doubt that.....what u have there would be almost 100k.....do you have any idea how much a tin of beverage cost now.

richmond500:
I buy 3in one refill bournvita for 5k, chi exotic is 7k for 10. Half carton of indomie is 5k.

Like I said, I stock my fridge for 45k

Sheuns:
15k now will get you just 1 chicken, 2 packs of juice and 1 tortilla bread.

helinues:
Before nko, na your family you dey expect make i take it to.

The family glory you have displayed no be something to compete with now

richmond500:
I spend 10k, yes I share the bills and we pay 20k a month.
I don't know the kind of BandA u use

Aleister:
And the girl say na trolley of rubbish …I wonder what she will say now in 2025?

Because if even if na sheeeet you wan buy for 25k, he nor go even full half of that trolley

richmond500:
currently, everything on that trolley no suppose pass 50k except u don't how to shop.
I stock my fridge with 45k.

Dalohad:
Oga go siddon for gutter. Your mouth dey smell like Agbero own.

Ferme ta sale bouche

DatNiggaDaz:


Helinues is aswani, aswani is Helinues. Know this know peace. Exposed

Oya reply me with the cowardly other profile