Few days ago, VERY SERIAL reported that Nigeria, Africa’s largest economy, is facing severe economic difficulties
as the Central Bank of Nigeria’s (CBN) debt to foreign banks could potentially consume a significant portion of the country’s foreign reserves, which currently stands at $34.1 billion.
Unknown to Nigerians, former president Buhari and suspended CBN Governor, Mr Godwin Emefiele secretly took up $15bn secret loans from a number of foreign investment banks including JP Morgan and Goldman Sachs without passing through or getting approval from the National Assembly. This was unearth from the apex bank just released financial statement for 2022 and six other previous years.
According to an analyst on social media, “Emefiele did not remember the Bible when he, together with Buhari , plundered Nigeria’s resources and destroyed the economy.”
He adds, “Through the Central Bank of Nigeria, (CBN) financial statements just released, it is now clear that Buhari, through the CBN ,took secret loans from international organisations like JP Morgan, Goldman Sachs, FX Forwards and others. These are secret loans up to $15 billion dollars.”
National Assembly Unaware of Buhari, Emefiele $15bn Secret Loan
Secret in the sense that the national assembly was not even aware of it and therefore , after the loans were received , there was no appropriation. Buhari , Emefiele and their thieving band just kept spending and plundering.
Buhari took those secret loans and used our foreign reserves (built by past governments) as collateral.
This is in addition to other humongous loans that he took , with the approval of the ‘o yes’ national assembly, from world bank ,IMF , ADB and other international financial institutions. He also took loans from countries like China, France,India , Japan and Germany.
Buhari took more loans in 8 years than all the loans , when added together, taken by past governments of Nigeria since our independence in 1960. Let that sink. He took more loans in 8 years than what we took in our first 55 years as a country.
And yet that was not enough for Buhari and Emefiele.
It has now emerged that Emefiele printed 23 trillion Naira for Buhari to spend without any appropriation or oversight by the national assembly. This is what has made the value of the Naira to tank.
Go and read the CBN report just published and you will weep for what Buhari did to Nigeria. The man is worse than Abacha. Compared to Buhari, Janathan is an angel.
I hope that those who voted him because “Osinbajo will handle the economy” can now clap for themselves.
How the CBN $15bn Loan To JP Morgan, Goldman Sachs, others. Spells Doom for Naira already in Free Fall
The continuous free fall of the naira spells doom for the Central Bank of Nigeria (CBN) which has a standing $15 billion loan obligation to some American investment bankers, including JP Morgan, Goldman Sachs, among others.
According to a recent analysis by BusinessDay’s of the CBN just released 2022 audited financial statement, the Apex bank has entered into a securities lending agreement with Goldman Sachs and J.P. Morgan, in which it received cash in exchange for its securities to be held as collateral for the loan.
“The cash received from Goldman Sachs is N0.23 trillion ($500 million), 2021: N0.22 trillion ($500 million) and JP Morgan N3.23 trillion ($7 billion), 2021: N3.05 trillion ($7 billion) is recognised in other foreign securities,” it stated.
Following president Bola Tinubu’s move to unify the exchange rates, the demand for dollar has intensified amid short supply, hence causing the naira to further weaken against the dollar.
As at the close of business on Friday last week, the Naira depreciated to N950 per dollar after losing N50 just within a few days at the black market while the official rates closed at at N781 per dollar. Even though as at yesterday Monday close of business, the naira appreciated slightly by 1.05 per cent closing at N940 per US dollar according to information gathered by VERY SERIAL from Bureau De Change operators.
Consequently, the depreciation of the naira against the US dollar means that the bank will have to convert the naira to the US dollar during debt servicing and repayment, hence as the naira depreciates, more naira will be needed to meet the debt repayment.
“Interestingly, no one knew about this loan until the financials was reported; One big implications is the pressure that will be created on our FX reserves when the sum of $10bn+ will be repaid to these banks,” Jide Babatope, an economic analyst said.
He added that while the loan cannot be added to the country’s debt profile, there is need for more transparency and accountability as to what the loan was used for.
Meanwhile, For the first time since 2015, the financial regulator released its long-awaited audited accounts, posting a profit of N103.8 billion in 2022.
Also it recorded a growth of 137 percent in its Profit after Tax across four years ( 2018 to 2022), achieving the highest net income in 2022 financial year.
The results, which are published on the CBN website, also had audited results for the last six years which showed the apex bank recorded a profit of N124.4 bin in 2016; N107.3 bn in 2017; N43.7bn in 2018; N34.6 bn in 2019; N30.8bn 2020 and N75.1 bn in 2021.
Further findings showed the loans to the federal government also known as ‘Ways and Means’ totalling N23 trillion earned interest of N1.9 trillion for the apex bank compared to N1.2 trillion in the prior year.
