Nigeria announced this week that it expects to receive $10 billion of inflows of which $7.0 billion is expected from NNPC’s forward sales and $3.0 billion from Qatar, according to a research note by Cardinal Stone Partners.

The inflows will help ease a liquidity crunch weighing on the naira.

The government has a “line of sight” on the inflows into the country “in weeks rather than months,” Finance Minister Wale Edun said at the Nigerian Economic Summit in the capital, Abuja, on Monday.

President Bola Tinubu’s government has been struggling to stem the decline in the currency. The inflows will add to other steps being taken by the government to boost foreign-exchange liquidity, including improving market transparency and allowing domestic entities to issue foreign-exchange instruments, Edun said.

Further out, given that both the fiscal and monetary authorities have shown commitment to improving the FX liquidity in the country, upside potential for the naira might be in the offing in the near to medium term, Cardinal Stone Partners said.

“For context, the government plans to raise $10.0 billion, The expected inflows could be higher if the government can obtain the $3.0 billion Afrexim bank loan and can get the World Bank facility of $5.0 billion ($3.5 billion for project development and $1.5 billion to support key policy reforms),” the research firm said.

https://moneycentral.com.ng/exclusive/article/qatar-nnpcl-to-provide-nigerias-expected-10-billion-inflow/

I can assure you dollar to naira will go back to #500 on or before March 2024. Mark my word

My question is you have $7Billion dollars upfront of supplies
What happened after the period under review.

I feel patchy patchy work should be jettison to a more sustainable approach in reviving the inflationary trend

And the politheifians that that will suck all that liquidity are already lurking around.

This is just temporary patch patch solution

saintopus:
My question is you have $7Billion dollars upfront of supplies
What happened after the period under review.

I feel patchy patchy work should be jettison to a more sustainable approach in reviving the inflationary trend

Exactly why I'm not excited about it. Its not sustainable. Its another loan. And we will be back to status quo when it's fully utilized.
Ramp up crude production to 2.5mbd by Dec, improve gas export. Stop petrol import by Dec 2023. You should get seeming stability (alongside this $10b). Then you can start hoping on fdi.

Okay

saintopus:
My question is you have $7Billion dollars upfront of supplies
What happened after the period under review.

I feel patchy patchy work should be jettison to a more sustainable approach in reviving the inflationary trend

[b]It's a two way sword... If you use it well it's good if you use it bad it would compound the problem... But we have no options... If I was president this is why I would do but

But I repeat how you use the money is important


If you use it to pay salaries we are finished

If you use it to build useless infrastructure that can't generate their loans it's even worse

If they steal it even worse

If you use it for subsidy ahh we are gone


If I was president I would use that loan to provide cheap capital /credit facilities to Nigerian business in two categories

1) import substitute- you must be able to produce what we import at a price not more than landing cost of the imported goods

2) you must be able to produce what you can export at a price not more than then international average price

3) you must be able to provide a certain number of jobs while doing this

Loan would range from $200k to $5 million

Loan would be given to banks that vet you and found you meet the criteria... We loan the banks the money at 3% for 5 years 2 years before loan payments states

Banks loan to the people the vettted at not more than 10% for 5 years 18 months space before first payment

This would achieve many things

1) safe guard the money so that we can reuse it

2) reduce pressure on dollars demand for import

3 ) create jobs

4) drag more companies into the tax net

5) Increase revenue for government[/b]

Hehehe