Among the many miracles the new Central Bank Governor, Dr. Olayemi Cardoso, is to perform is that of stabilising the Naira.
The National Economic Council specifically gave him that mandate and he must not fail.
Knowing the circumferences surrounding his appointment he knows he cannot afford to fail.
Nigeria has decided to use the emergency $3 billion loan for crude oil to stabilise the Naira.
The dwindling value of the Naira is a source of worry to all and the Federal Government is set to fix this anomaly.
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This is because, the Naira whose value has continued to fluctuate in the Investors & Exporters’ window, sank low in the parallel market, hitting ₦1000/$ this month.
At the end of the 136th NEC meeting, held at the presidential Villa in Abuja, Nasarawa State Governor, Abdullahi Sule, said “the $3 billion will be used to improve revenue.”
Indeed, the Nigerian National Petroleum Company Limited, NNPCL, had on August 16, secured an emergency $3 billion crude oil loan from Afrexim Bank.
What The Loan Was Meant For
The purpose of the loan obtained from the Afrexim Bank was to relieve pressure on the Naira.
He said the loan would enable it to settle taxes and royalties in advance.
It would also equip the Federal Government with the necessary dollar liquidity to stabilise the Naira, with limited risk.
However, the Naira has continued to fluctuate in the I&E window and worsened at the parallel market, hitting ₦1000/$ 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 ₦10 against the dollar in the black market, closing at ₦990/$1.
CBN Wants More Time To Settle Down
The new leadership of the CBN, has requested for some time in order to work out how to proceed on resolving this challenge.
“It is one thing to take the loan it is another to plan the process of stabilisation because it’s going to take a while.
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“The CBN governor was just confirmed a few days back and he started rolling out his plans of what to do,” Governor Sule said.
On the supplementary budget, he explained that it “is a request 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, no supplementary budget requests have been presented to NEC”.
