Oil Block, BDCs - Nigeria's Magics
Quote from Ndubuisi Ekekwe on August 19, 2023, 4:32 PMTwo magics in Nigeria:
#1. Bureau De Change (buy at say X10/$, sell at X12/$, for no major value than access, considering the X10 is coming from the government).
#2. Oil block (take national asset, give it to one connected man at A naira, that man now sells the rights to oil majors at 10A naira, and forever is rich).For #2, there is no country in the world where that has scaled as Nigeria has done it.
It will stabilize because many things are being deployed. I am hoping that will give the government time to find a sustainable strategy. The $3 billion is significant and will have an impact. But if that is not renewed in 3 months, we will get back to zero state. The irony is this: if we can find that type of money to defend Naira, why not fix one refinery. Nigeria confuses people most of the time!
https://twitter.com/ndekekwe/status/1692994873568133168
Two magics in Nigeria:
#1. Bureau De Change (buy at say X10/$, sell at X12/$, for no major value than access, considering the X10 is coming from the government).
#2. Oil block (take national asset, give it to one connected man at A naira, that man now sells the rights to oil majors at 10A naira, and forever is rich).
For #2, there is no country in the world where that has scaled as Nigeria has done it.
It will stabilize because many things are being deployed. I am hoping that will give the government time to find a sustainable strategy. The $3 billion is significant and will have an impact. But if that is not renewed in 3 months, we will get back to zero state. The irony is this: if we can find that type of money to defend Naira, why not fix one refinery. Nigeria confuses people most of the time!
Topic: Nigeria Announces New Operational Mechanism for BDCs, Brings Them Back into Regulated FX Market.
Two magics in Nigeria:
#1. Bureau De Change (buy at say X10/$, sell at X12/$, for no major value than access, considering the X10 is coming from the government).
#2. Oil block…— Ndubuisi Ekekwe (@ndekekwe) August 19, 2023