The National Economic Council in Nigeria stated on Thursday that the Federal Government would use the $3 billion emergency loan for crude oil it obtained in August to stabilise the naira, whose value has been fluctuating in the investors’ and exporters window and getting worse in the black market, reaching N1000/$ earlier this month.
The governor of Nasarawa State, Abdullahi Sule, addressed reporters after the 136th National Economic Council meeting, which took place at the Aso Rock Presidential Villa in Abuja, and said, “So, we are very confident and we still believe very strongly that with the plan that will come out and with all these items that have been listed on the improvement of revenue, the $3bn shall be useful to us down the line.”
In order to relieve pressure on the naira, the Nigerian National Petroleum Company Limited disclosed on August 16 that it had obtained an urgent $3 billion crude repayment loan from Afrexim Bank.
It claimed that the loan would make it possible for it to pay taxes and royalties upfront.
Additionally, it would provide the Federal Government with the essential dollar liquidity to risk-aversely stabilise the naira.
The naira, however, has remained erratic in the I&E window and gotten worse on the black market, reaching N1000/$ the week before last.
It recovered on Friday, September 22, 2023, after President Bola Tinubu nominated Olayemi Cardoso as CBN governor. The naira moved upwards by N10 against the dollar in the black market, closing at N990/$1.
When asked when the intervention would begin and whether a supplementary budget would be required, Sule stated, “The $3 billion that was taken in order to stabilise the naira. As you may have noticed, we now have a new team at the CBN, and the new team is requesting some time to work out the modalities.
“It is one thing to take the loan; it is quite another to plan the stabilisation process, which will take some time.”
“The CBN governor was only confirmed a few days ago, and he has already begun laying out his plans for what to do.”
On the supplementary budget, Sule “A supplemental budget is a request that will be made in response to whatever is going on right now.” I’m not sure there is a need for a supplementary budget immediately. So far, there have been no supplementary budget requests that were presented to the National Economic Council .”