PRESIDENT BUHARI UNVEILS NEW NNPC AC. President Muhammadu Buhari during the unveiling the New NNPC at the State House PHOTO; SUNDAY AGHAEZE.JULY 19 2022
HighlightOil & GasTrending Story

FG’s foreign exchange liquidity booster:  NNPCL, Qatar to provide $10bn inflow

2.3k
The Nigerian National Petroleum Company Ltd (NNPCL) and Qatar are to
mobilize $10 billion for the Federal Government to ease liquidity crunch in the nation’s foreign exchange market, it has been revealed.
Worried by the decline in the value of the Naira, President Bola Tinubu and the Central Bank of Nigeria (CBN) had intervened in a bid to stabilize the struggling currency floated by the apex bank some months ago.
Out of the $10 billion of inflows being expected by the Federal Government as announced early this week, $7.0 billion is expected from NNPCL’s forward sales while $3.0 billion is coming from Qatar.
“The inflows will help ease a liquidity crunch weighing on the Naira,” an industry source said.
Persecondnews recalls that the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, had said at the Nigerian Economic Summit in the capital, Abuja, on Monday that the  government has a “line of sight” on the inflows into the country in weeks rather than months.”
According to Edun, 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.
However, 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.
“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),” a source said.

Leave a comment

Related Articles

Fatal Islington sword attack: London teenager Tate bags 22 years

A teenager, Sanchez Tate, 18, has been sentenced to 22 years in...

With extant appeal, Rivers Govt.’ll be given its monthly federal allocation – FG

The Office of the Accountant-General of the Federation has reacted to the...

FG urged to promote national unity, social cohesion using community-based events, initiatives

The Federal Government has been urged to take a more active role...

Carjacking in FCT: Police recover Land Cruiser Prado after high-speed hot chase

In a swift response to a distress call, the Federal Capital Territory...

Just in: Abuja Court remands 109 alleged foreign hackers in prison

No fewer than 109 alleged foreign hackers, including females who attempted to...

Lagos, Abuja airports receive full NCAA certification

Murtala Muhammed International Airport (MMIA), Lagos, and the Nnamdi Azikiwe International Airport...

Day 3 of African Military Games: Nigerian Armed Forces Shine, Win 17 Medals

The Nigerian Armed Forces have made a remarkable impact at the ongoing...

FG raises N346bln at Nov. 2024 bond auction, reflecting strong investor interest

The Federal Government has successfully raised N346.155 billion at its November 2024...

Breaking: Supreme Court Nullifies National Lottery Act

The Supreme Court on Friday nullified the National Lottery Act 2005 enacted...

NNPC Ltd. hosts NSC boss, pledges support for revitalization of Nigerian football

In a significant move to boost Nigerian football, the Nigerian National Petroleum...

Nigerian youths essential to repositioning Africa, says VP Shettima

Vice President Kashim Shettima has reaffirmed the federal government’s commitment to youth...

Just in: Simon Ekpa ‘ll be extradited to Nigeria to face charges – Defence Headquarters

The Nigerian Defence Headquarters, Abuja, has announced plans to extradite Simon Ekpa,...

NPA’s CEO Dantsoho Makes History as First Nigerian Chairman of PMAWCA

In a groundbreaking achievement, Dr. Abubakar Dantsoho, Managing Director of the Nigerian...

Save for rainy day, Federal Accountant General urges state govts, emphasizes transparency, accountability

In a bid to ensure financial stability during adverse situations and economic...

Sacked UNIZIK VC Odoh to Tinubu: You can’t fire me through press release

Sacked Vice-Chancellor of Nnamdi Azikiwe University (UNIZIK), in Awka, Anambra State, Prof....

UBA to empower MSME’s with wealth management strategies at its ‘Built to Last’ series

As part of its commitment to deepen the growth and sustainability of...

Olopade assumes office as NSC DG, promises new lease of life for Nigerian sports

Bukola Olopade had assumed office as the Director General of the resuscitated...

Amid High Inflation Rate, IMF Pledges Support for Nigeria’s Economic Reforms

International Monetary Fund (IMF) President Kristalina Georgieva and her team met with...

Nigeria’s Super Falcons Ajibade, Nnadozie, Nominated for 2024 CAF Women’s Player of the Year

The Confederation of African Football (CAF) has announced the nominees for the...

Just in: FG announces reshuffle of governing councils at FUOYE, Kogi varsity

The Federal Government has made changes to the governing councils of Federal...