Afrexim Bank is using oil traders to fund a $3 billion loan to Nigeria’s national oil business, which is essential to the nation’s efforts to support the naira.
According to Reuters sources, Afrexim recently contacted traders to gauge their interest in supporting the oil-backed loan to national oil company NNPC LTD. It is attempting to come up with terms to present to trading houses.
This is in light of the nation’s currency rising to 1000 naira to a dollar in the foreign exchange market.
“There is a lot of interest, but they need to see the conditions,” a senior oil executive with knowledge of the negotiations told sources. The executive noted that increasing oil prices above $90 a barrel would help increase interest, but he asked that his name not be used because he is not permitted to speak publicly on the matter.
The $3 billion loan was announced by NNPC LTD, Nigeria’s state oil corporation, in August as part of its relentless efforts to support the naira, which is losing strength. The country’s economic problems have been made worse by the devaluation of the currency and the ensuing disparity between the official and black market exchange rates, which has led people and businesses to seek for dollars there.
The suggested system calls for traders to get actual oil cargoes as payment from financiers. According to one of the sources, Afrexim Bank is painstakingly calculating the precise amount of oil that would be provided to these dealers in exchange for their financial support.
At his confirmation hearing on Tuesday, new central bank chief Olayemi Cardoso said clearing outstanding foreign exchange obligations to local lenders, which could amount to $7 billion, was his top priority.
Due to the backlog, there are fewer dollars available on the legal market, prompting companies and individuals to go for them on the black market.
Cash-up fronted traders would receive physical oil cargoes as payment. One of the individuals claimed that the bank is figuring out how much oil to give certain dealers in exchange for the funding.
NNPC and Afrexim Bank have not yet commented on the situation, and NNPC has not yet made an announcement on this project. Nevertheless, as Nigeria works to stabilise its currency and economy, all eyes are on this ground-breaking alliance.
The partnership between Afrexim Bank and oil dealers offers a special chance to strengthen the naira and stabilise the country’s financial outlook as Nigeria navigates the difficult economic landscape. However, the ultimate conditions reached and the traders’ willingness to take part in the endeavour will determine how successful this novel funding method is.
Glamour Adah
Follow us on:
The 34th anniversary of German Unity celebrated in Lagos, was hosted by Consul General Weert…
Matt Gaetz has said he will not return to Congress after withdrawing as Trump’s DOJ…
President Tinubu has sought Senate confirmation of Olufemi Oluyede as Chief of Army Staff, citing…
Israeli PM Netanyahu faces potential arrest in the UK as Downing Street pledges to fulfill…
A second Australian teenager has died of suspected methanol poisoning in Laos, bringing to six…
https://www.youtube.com/watch?v=mFlFl1mPGC8 The arrest of self-proclaimed Prime minister of the Biafra Republic, Simon Ekpa who was…
View Comments
NIGERIAN CUSTOM AUCTION OF MOTORCYCLE FOR SALE AT A CHEAPER RATE AND AFFORDABLE PRICE....
HAOJUE - bike #300,000
BAJAJ-. Bike #250,000
Commercial bike #260,000
Keeway- bike #320,000
Daylong bike #280,000
Scooter 🛵 bike #200,000
They are all in good perfect working condition with full options.
NOTE, DEPOSIT WILL BE MADE BEFORE DELIVERY 🚚. WE DELIVER NATIONWIDE. CALL officer MrsEze ON 09156089111
#BAGS OF RICE (50Kg)
👉SPECIAL RICE:- #18,500
👉MAMA AFRICA:- #18,500
👉 TOMATO RICE:- #18,500
👉CAP RICE:- #18,500
👉MAMA GOLD #18, 500
👉
ELEPHANT GOLD:- #18,500
👉 UMBRELLA:- #18,500
👉 RISING SUN:- #18,500
GALLON OF OIL
👉GINO OIL #10,500
👉 POWER OIL #10,500
👉 DEVON KINGS OIL #10,500
DELIVERY CHARGES FOR BAG/KEG IS....#2,000
WHICH MUST BE PAID FOR BEFORE DELIVERY COMMENCE
Some Auction Vehicles/Cars For Sale
Golf3= 200,000
Camry Tinny-Light=350,000
Tundra 1,300,000
Toyota Exterra=850,000
Toyota Camry big daddy=650,000
Toyota Venza= 1.7million
Toyota Avalon=850,000
Toyota Rav4=950,000
Toyota Prado=1.3million
TOYOTA HILUX=2million
Toyota Sienna=650,000
TOYOTA 4-RUNNER=950,000
Toyota Corolla=650,000
Toyota Matrix= 650,000
Toyota Highlander=950,000
Toyota Picnic=500,000
Tacoma 1.850,000
Toyota Hiace Bus=950,000
Toyota Tundra=1.5million
Toyota Sequola=900,000
BMW 5-series=1.960,000
BMW 3-series=1.640,000
BMW X6=2.670,000
Ford Edge=700,000
Ford Escape=600,000
Honda Elantra=600,000
Honda Baby-Boy=700,000
Dyna Truck 900k
TIPPER Head 6mill
Honda Accord=550,000
Honda CRV=650,000
HONDA CIVIC=500,000
HONDA EVIL-SPIRIT=750,000
HONDA ODYSSEY=500,000
Honda Pilot=850,000
Nissan pathfinder=800,000
Nissan Amanda=750,000
Infinity=950,000
Benz C250=N1.300,000
Benz C300=1.6MILLION
Benz ML350=2 million
Benz ML300=1.5 million
Benz ML550=2.6million
Mercedes-Benz C-Class ₦1.3Million
Mercedes-Benz E-Class ₦1.8Million
Mercedes-Benz GLK ₦3.Million
Es330 1.6
Lexus C5 350=950,000
IS250 1m
Lexus Rx300=1.2 million
Lexus Rx330=1.5 million
Is350 2
Lexus Rx350= 2 million
ES350 2mill
Pequot 206=350,000
Pequot 406=470,000
Pequot 607=650,000
.....
(O91 5608 9111