The National Economic Council stated on Thursday that the $3 billion emergency loan-for-crude oil that the Federal Government obtained in August would be used to stabilise the naira.
The Punch reported that the value of the naira has been fluctuating in the Investors & Exporters window and getting worse in the parallel market, reaching N1000/$ earlier this month.
The governor of Nasarawa State, Abdullahi Sule, said this in a statement to State House reporters following the 136th NEC meeting, which took place at the Aso Rock Presidential Villa in Abuja.
He said, “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 has obtained an urgent $3 billion crude repayment credit from Afrexim Bank.
It said that the financing would make it possible for it to pay taxes and royalties upfront.
Additionally, it would provide the Federal Government with the essential dollar liquidity to risk-aversely stabilize the naira.
The naira, however, has remained erratic in the I&E window and gotten worse on the black market, reaching N1000/$ the week before last.
On Friday, September 22, 2023, it started to rise again when President Bola Tinubu proposed Olayemi Cardoso as CBN governor. On the black market, the naira strengthened by N10 versus the dollar, closing at N990/$1.
When asked if a supplemental budget would be required and when the intervention would begin, Sule responded, “The $3 billion that was taken to stabilize the naira. As you can see, the CBN has a new team, and the team that is just starting out is asking for some time to work out the modalities.
“Taking the loan is one thing; planning the stabilization procedure is another because it will take some time.”
“The CBN governor was just appointed a few days ago, and he has already begun to lay out his plans for action.”
He also claimed that with regard to the supplementary budget, “A supplementary budget request is one that will come as a result of whatever is happening 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 NEC.”
