Index to Nigerian Newspapers

Against the backdrop of the $3 billion emergency loan secured by the Nigerian National Petroleum Company Limited (NNPCL) from Afreximbank last week to redeem the tumbling naira and stem volatilities around the foreign exchange market, some economic experts have called for the careful utilisation of  the money so as to create the needed impacts on the economy as envisaged. 

This was even as the noted  that the loan creates an erroneous impression of insolvency on the part of the Central Bank of Nigeria (CBN) saying it was an unhealthy signal to foreign investors.

In his submission on the matter, a financial economist and Professor of Capital Market at the Nasarawa State University Keffi, Uche Uwaleke told Daily Sun that some clarity on the loan was necessary.

“If the security for the loan are some barrels of future crude oil production, at what forward contract price was this negotiated? In view of the fact that all proceeds of crude oil sales are paid by into the federation account, this sort of swap transactions has implications for FAAC receipts meant for the three tiers of government”.  Also reacting, the Director General, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said Nigeria was currently neck-deep in liquidity crisis at the foreign exchange market, saying that some options were on the table for the country to embrace.