NNPC* uses crude oil to get an emergency $3 billion crude oil repayment loan from Afreximbank: “will provide some immediate disbursement that will enable the NNPC Ltd. to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilizing the exchange rate market.”

Nothing new... yes, they cannot wait to sell the oil before using the funds! Nothing new or innovative. You have oil, and you use it to take out loans. But you can also sell that oil for the same funds. What this means is clear: the rate Nigeria needs money is faster than the rate it can ship it to buyers. If you do this as a businessperson in Aba, Kano, Lagos, etc, in 6 months, you will return to the village with nylon bags! Nigeria could lose close to 30% of the value of the oil via interest payment and panic pricing.

NNPC* uses crude oil to get an emergency $3 billion crude oil repayment loan from Afreximbank: “will provide some immediate disbursement that will enable the NNPC Ltd. to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilizing the… pic.twitter.com/QQhj6s3wSP

— Ndubuisi Ekekwe (@ndekekwe) August 16, 2023

Meanwhile. NNPC* has some assets in a yard sale: "Nigeria is considering selling stakes in about 20 state-run companies in a bid to raise funds and improve governance at the entities. Nigerian National Petroleum Co. is among firms the government may sell a stake in, according to Armstrong Takang, chief executive officer at the Ministry of Finance Incorporated or MOFI, a state-owned asset management company. The agency is considering options including strategic sales and initial public offerings and aims to implement the plan within 18 months, he said in a phone interview."