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Ogim:
Some months ago my sister passed away because of cancer which cost alot of bills. After everything I was in debt but with support from friends and family I was able to raise out of that.
I earn 200k per month from my full-time job. But unfortunately, the company I work for isn't registered with my bank, so I can't obtain a reasonable loan from the bank for me to continue my projects. I need a loan of 3m to pay back 1m per year for 5years. So I will be paying back 5m in 5years.
Please I don't want any 20% loan, where I have to pay 20% every month, I don't like that type of loans. I just want a loan I can pay back and still do other things with my salary without over stressing myself. I have a collateral, a land which I have build and roof but haven't completed the houses yet, hence part of the reason I need the loan.
Anyone who's interested, please let me know. Thanks

The current exchange rate of Naira to US$ is about N580

This means that the current value of N3 million is equivalent to US$5,172

Based on present economic realities in Nigeria in the next 5 years $1 would be exchanging for around N2,000

This means that in the next 5 years N5 million would be roughly equivalent to around US$2,500

If you were a bank or finance company would you lend someone $5,172 today then wait roughly 5 years to be repaid $2,500?

SavageResponse:


The current exchange rate of Naira to US$ is about N580

This means that the current value of N3 million is equivalent to US$5,172

Based on present economic realities in Nigeria in the next 5 years $1 would be exchanging for around N2,000

This means that in the next 5 years N5 million would be roughly equivalent to around US$2,500

If you were a bank or finance company would you lend someone $5,172 today then wait roughly 5 years to be repaid $2,500?

From your analysis, that's expecting the economic to continue in it's current trend, but what if it reverse? No matter how much you analysis the market no one can predict the future. Instead of asking questions without answers or solution. Why not state your own expection for the loan. What do you think is a better repayment and interest?

Ogim:



From your analysis, that's expecting the economic to continue in it's current trend, but what if it reverse? No matter how much you analysis the market no one can predict the future. Instead of asking questions without answers or solution. Why not state your own expection for the loan. What do you think is a better repayment and interest?

The rate I used in my analysis is even a best case scenario.

A more realistic exchange rate would tend towards an exchange rate of N3,000 to 1$ in the next 5 years!

- Nigeria is soley dependent on export of crude oil to earn forex

- The price of crude oil has fallen and will likely continue to fall due to improvements in renewable energy sources

- Most European countries have set timetables for stoppage of petrol driven cars and full adoption of electric vehicles and these will start kicking in in about 3 years from now

- The biggest reason of all is that Nigeria is taking a lot of heavy foreign currency denominated loans; these loans need servicing therefore if the government is spending a significant proportion of its forex earnings to just pay loan interests it means only very little will filter down to the manufacturing companies and other sectors which will be forced to source forex in the back market to pay for machineries and raw materials that have no local substitute

- Dangote Refinery which was supposed to help conserve forex has still not been completed; infact the project has now overshot it's budget several times and is even shopping for additional funding.

Let's not forget that general elections will be upon us in about 1 year so very soon our politicians will start buying up dollars so it will be easier for then to carry millions around during electioneering campaigns

There are more reasons but I will stop here for now

SavageResponse:


The rate I used in my analysis is even a best case scenario.

A more realistic exchange rate would tend towards an exchange rate of N3,500 to 1$ in the next 5 years!

- Nigeria is soley dependent on export of crude oil to earn forex

- The price of crude oil has fallen and will likely continue to fall due to improvements in renewable energy sources

- Most European countries have set timetables for stoppage of petrol driven cars and full adoption of electric vehicles and these will start kicking in in about 3 years from now

- The biggest reason of all is that Nigeria is taking a lot of heavy foreign currency denominated loans; these loans need servicing therefore if the government is spending a significant proportion of its forex earnings to just pay loan interests it means only very little will filter down to the manufacturing companies and other sectors which will be forced to source forex in the back market to pay for machineries and raw materials that have no local substitute

- Dangote Refinery which was supposed to help conserve forex has still not been completed; infact the project has now overshot it's budget several times and is even shopping for additional funding.

Let's not forget that general elections will be upon us in about 1 year so very soon our politicians will start buying up dollars so it will be easier for then to carry millions around during electioneering campaigns

There are more reasons but I will stop here for now

The Naira will not depreciate that much in 5 years. 1000 NGN to the dollar, tops.

einsteine:


The Naira will not depreciate that much in 5 years. 1000 NGN to the dollar, tops.

I honestly hope you are right and I am wrong!