NewStats: 3,264,679 , 8,184,395 topics. Date: Thursday, 12 June 2025 at 12:22 AM 703i4m

As Explained by O'tega Ogra:

EXPLAINED: What you need to know about @nnpclimited's $3billion Emergency Crude Repayment Loan from Afrexim Bank
@afreximbank

1. What is the $3 billion loan about?
The NNPC Ltd. secured an emergency $3 billion crude oil repayment loan from AFREXIM Bank. This is not a crude-for-refined products swap but an upfront cash loan against proceeds from a limited amount of future crude oil production.

2. Is this loan risky for NNPC Ltd. or the Nigerian Treasury?
No. The exposure for NNPC Ltd. is very limited, covering just a fraction of their entitlements. Additionally, there are no sovereign guarantees tied to this loan.

3. What's the benefit of this loan to Nigeria?
The loan will assist NNPC Ltd. in settling taxes and royalties in advance. It will also equip the Federal Government with the necessary dollar liquidity to stabilize the Naira, with limited risk.

4. How will the loan be disbursed?
The funds will be released in stages or tranches based on the specific needs and requirements of the Federal Government.

5. Will this affect fuel prices?
A strengthened Naira as a result of this initiative will lead to a reduction in fuel costs. This means that if the Naira appreciates in value, the cost of fuel will drop and further increases will be halted.

6. What about subsidies? Are they coming back?
No. A stronger Naira will result in lower prices from the current level, making subsidies unnecessary. The deregulation policy remains unchanged.

7. How will the loan be repaid?
The loan will be repaid against a fraction of proceeds from future crude oil production. It's a strategic move that ensures a balance between our current economic needs and future production capabilities.

8. What is the difference between this and previous swap deals?
This is not a crude for refined products agreement where the government does not earn any proceeds from the swap.

OPEOLUWA also explains:

This is great news. This is a form of Volumetric Production Payment (VPP). It is a structured investment that involves the owner of an oil or gas interest ( Nigeria/ NNPC) borrowing money( $3 billion) against a specific volume of production of crude oil. The investor or lender (Afrexim bank) receives a stated monthly quota of crude oil often in raw output, which is then marketed by the VPP buyer( Afrexim ). Buyers could include investment banks, hedge funds, energy companies, and insurance companies.

Simply put, Afrexim is borrowing us $3 billion which will be used to help stabilize the naira in exchange for a daily quota of our crude oil production.

This is part of PBAT’s fiscal ideology he talked about in his article in 2015: “Oil is a ive asset in the ground. When cash-strapped yet in need of more revenue presently, a nation should also consider issuing guarantees on the future oil shipments on a price certain paid now; or selling a portion of its equity in the t ventures.

Some may call this a variant of an oil futures. Whatever it is called, it should be considered particularly as a measure to improve our foreign currency position.”

For the first time we have a president with an ideology and he seem to be following through on his ideologies.

1. What is the $3 billion loan about?
The NNPC Ltd. secured an emergency $3 billion crude oil repayment loan from AFREXIM Bank. This is not a crude-for-refined products swap but an upfront cash loan against proceeds from a limited amount of future crude oil production

This is the reason they don’t want to divide Nigeria

All because of oil Unity


Na only oil dey hold this country

Bloody Parasites

This is why you can never see them insult anyone from South South here on Nairaland bcuz they know say if we rise up it’s over

Infact this is why I’m always angry on this forum

Them too beg oil

If you borrow that amount of loan ehnee maybe interest will be 2million naira

The way this guys call figures een

Bb

Which they'll share among themselves

Alchemy528:
If you borrow that amount of loan ehnee maybe interest will be 2million naira

Make dem send me my share

Taylor90:


This is the reason they don’t want to divide Nigeria

All because of oil Unity


Na only oil dey hold this country

Bloody Parasites

If you want Nigeria divided, go to your senator and get him to the requesite laws.


No offence, but you guys who come here and shout about dividing Nigeria are basically sitting around and doing nothing. You should do more than post on Nairaland for likes.


And as much as I don't like this government, right now, we need the money, and if this happened under Obi or Atiku, we go take am like that...but it still don't mean the government of APC is right.

Nothing I need know. Money will be looted by nnpc, and directors, fuel will even be costlier than 600# . We will feel no impact of it. Forget the explanation. We no be kids

Understood and hope it works out as planned.

But then, those who brought us to this point should be identified and dealt with accordingly.

Loan Loan and more loan everytime.

All the loans Buhari collected for 8 years with little or nothing to show


Bulaba has started to collect his own. A huge amount out of this money will end up looted.


As someone rightly said above, Nigeria only exists because of the oil reserves it has.

The country has long been divided along multiple lines but the greedy politicians will do everything to make sure the fraudulent contraption remains just to sell oil and loot the money.

A welcomed development if properly utilized.

NAIRA SHALL RISE AGAIN!!!

All these cosmetic approaches should be jettisoned for a real fight with the real criminals in the system.

Emefiele's CBN created a new powerful class of arbitrage profiteers who wont just go away because there's a new president. These people must be identified and sanctioned severely. We don't spend dollars in Nigeria but, dollar demands on a daily basis is sky high... why is that?

Desperate times calls for desperate measures, the black market and bureau the change business must be stopped forthwith! All dollar demands and supply MUST be made to go through official channels... the banks!

Nobody should be allowed to hold FX in Nigeria beyond two weeks including (inside domiciliary s). People who seek dollars for specific purposes like tuition abroad should be taxed between 10-20% ... After all, no poor man travels abroad for studies.

CBN cannot continue to posture like a lame hapless puppy. Draconian rules must be implemented to run those thieves out of business. A major responsibility of the CBN is to maintain the value of the naira and intervene in the FX market when necessary but, this cannot be achieved if the FX systems is allowed to be wilfully manipulated by external forces.

What's tha business?

nlfpmod:
As Explained by O'tega Ogra:



OPEOLUWA also explains:

They are borrowing to fight dollars, after claiming they have made so much savings from removing subsidy. Liars of the highest orders.APC is damn wicked and no destination.

Stories no dey Finish

great initiative but how sustainable is this on the long run

it's like subsidizing the naira and not allowing a total float

this dollar issue staart to make me think is Nigeria that unproductive?

we can't earn enough dollars compare to the dollar we need to spend?

what about the earnings from crude oil sale or are we overestimating our oil earnings

Taylor90:


This is the reason they don’t want to divide Nigeria

All because of oil Unity


Na only oil dey hold this country

Bloody Parasites

E be like say na you this Tinubu regime hit for this Naija oo.. You just dey lament 247.

Don't give up bro. E go better.

M

Lets watch how it will pan out, no be Nigeria and drug lord.
If you've seen heroin or cocaine addicts they are always borrowing and begging for money to quench their cravings and postpone the withdrawal symptoms.
Nigeria! Una never see anything, you see all those epistles, na just summary of how this money will be looted, no be this exact every day loan last istration dey borrow and it was uned for or squandered on frivolities, maybe this one will be used to chatter adult pampers and scrotal patching and welding.

Just be watching...

Creamypie:
Nothing I need know. Money will be looted by nnpc, and directors. We will feel no impact of it

NO IT WON'T

This line is getting stale.

You have to know that NNPC is now a private company, and as a result any mass looting of the money would lead to the collapse of the NNPC as we know it. No money to loot again.

This is NNPC as a company borrowing money to pay for fuel without asking for it from government .


(No, APC is still a bad party)

Tinubu will be worse than Buhari
Borrowing here and there despite the fact that subsidy is gone and some crazy taxes have been added to the burden of the common man
Why borrow to stabilize the Naira when you've floated already?!
Chai, Yorubas
So this was what the likes of Awolowo and Abiola were planning to do to Nigerians?!

Pls I need data 08064357013(mtn),I will give you free Netflix streaming

nlfpmod:
As Explained by O'tega Ogra:



OPEOLUWA also explains:

But they have not told us the duration of this oil payment!

Give me my own share, let me come and be going 🫥

This country corrupt die.... Wtf.

Money that they will split among themselves criminals.

Very good at borrowing.

People that corner palliative food, common food, is it money they can't squander.

They should make people buying our oil to pay in naira, that's the only way to strengthen naira.

Will $1 be equal to N1?

Creamypie:
Nothing I need know. Money will be looted by nnpc, and directors. We will feel no impact of it

Exactly

Ok