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Revisions:
Exchange Rate from N305/$1 to N360/$1
Oil production from 2.18mbpd to 1.7mbpd
Benchmark from $57 to $30
Oil Rev from N7.6t to N1.4t (wow!!)
Non-Oil Rev from N6.4t to N5.8t
Debt Service Unchanged N2.45t
New Borrowings from N1.5t to 4.4t (WOW!!!) https://twitter.com/thecableng/status/1247923316867977216
Exchange Rate from N305/$1 to N360/$1
Oil production from 2.18mbpd to 1.7mbpd
Benchmark from $57 to $30
Oil Rev from N7.6t to N1.4t (wow!!)
Non-Oil Rev from N6.4t to N5.8t
Debt Service Unchanged N2.45t
New Borrowings from N1.5t to 4.4t (WOW!!!) https://twitter.com/thecableng/status/1247923316867977216
1. Exchange Rate from N305/$1 to N360/$1
Clearly a devaluation. Necessary as crude oil prices falls, the FGN needs more Naira to spend.
The CBN hand was forced really.
Positives? Remittances may increase, "Emeka" can send $10,000 get N3,650,000 and build village flat
Clearly a devaluation. Necessary as crude oil prices falls, the FGN needs more Naira to spend.
The CBN hand was forced really.
Positives? Remittances may increase, "Emeka" can send $10,000 get N3,650,000 and build village flat
2. Oil production from 2.18mbpd to 1.7mbpd
Not clear if this is because of OPEC+ planned output cuts.
A double wammy, output and prices fall.
Response? Value Addition, push for petrochemical plants to grow share of crude oil an gas by products. Can we pass PIB already?
Not clear if this is because of OPEC+ planned output cuts.
A double wammy, output and prices fall.
Response? Value Addition, push for petrochemical plants to grow share of crude oil an gas by products. Can we pass PIB already?
3. Benchmark from $57 to $30
The prudent thing to do
Allows a savings buffer to rebuild to Excess Crude Account & "sterilizes" crude oil revenues.
On a beside, change ECA formula, instead of benchmark prices, agree a fixed % of revenues e.g. 2% inflow irrespective of prices
The prudent thing to do
Allows a savings buffer to rebuild to Excess Crude Account & "sterilizes" crude oil revenues.
On a beside, change ECA formula, instead of benchmark prices, agree a fixed % of revenues e.g. 2% inflow irrespective of prices
4. Oil Rev from N7.6t to N1.4t
Holding out hope this is a typo, this is a 81% fall!!
This is what "winter" looks like. Nigeria since "olubiri" has simply become addicted to crude oil $ revenues.
Will this shock Nigeria to look at (no not agriculture) but services e.g. IT?
Holding out hope this is a typo, this is a 81% fall!!
This is what "winter" looks like. Nigeria since "olubiri" has simply become addicted to crude oil $ revenues.
Will this shock Nigeria to look at (no not agriculture) but services e.g. IT?
