₦airaland Forum

By BusinessNews Staff
Although foreign loans are attractive for their single digit and low interest rates, the continued depreciation in value of the naira against major foreign currencies has turned them into a huge burden for borrowers in Nigeria.

The naira currently exchanges for N197 to a dollar at the official window and N320 at the parallel market.

Investigations by our correspondent revealed that Nigerian firms that borrowed dollar denominated loans were facing the risk of foreclosure on assets pledged as collateral and loss of credibility among creditors.

It was gathered that whereas some of them took credit facilities at a time when the dollar exchanged for N150, now that the currency is exchanging for N320, the cost of servicing the loans had now gone up by 100 per cent.

Although the losses would have been less if some of the firms were able to service the loans at the official exchange rate of N197 to a dollar, the Central Bank of Nigeria had in the wake of the sharp drop in crude oil prices embarked on forex rationing measures, cutting off most firms from access to the official window.

The survey conducted by PricewaterhouseCoopers showed that over 60 per cent of companies in Nigeria recorded huge declining sales/revenue as a result of the forex rationing policy.

Read more@http://www.nairausd.com/2016/04/dollar-scarcity-firms-struggle-to-repay.html?m=1

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They should ask buhari the formular he uses to send dollars to Zahra and also GArba Shehu will be of tremendous help

24 Firms Lose, Market Capitalisation Sheds N54bn

http://www.nairausd.com/?m=1

Fedayeen:
They should ask buhari the formular he uses to send dollars to Zahra and also GArba Shehu will be of tremendous help

Kai!

I see Osun state buying Nigeria on OLX if buhari continue ruling us

Changing From 21st century to 14 B.C.E
That's APC Change.

DankemzI:
Changing From 21st century to 14 B.C.E
That's APC Change.

Next time Nigerians hear *****CHANGE******.

Hmmmmm

these is serious

bizgenius1:
these is serious

Are you surprised

ifyan:
Are you surprised

well yes i am a bit