I had written about the Chinese offer to Nigeria to buy a part of our reserves for $60b in cash….we did not take that offer.
We seem keen on taking this $15b Indian offer, and we should, its a great deal.
First it gives us much need Forex….secondly it locks in India to buy our oil as Iran aggressively reengages Asia to recover lost market share. Third is provides a hedge against falling oil price. these is a positive move.
The only risk is on Nigeria side, ie delivery. Which brings us back to the NDA, the PIB, and how we want to manages this resource called oil.
I have not seen the agreement, but i know somewhere will be an embedded clause that should we fail to deliver, the deal is off. This deal should provide much needed impetus to negotiate a final agreement to ensure a lasting peace in the Niger Delta and pass the PIB.
This is an excellent deal by Nigeria, its shows serious planning and execution, we must ensure local politics donr cause it to fail.
However keep in mind this is future sales, thus we must not share or spend this money today…..it can be invested, but not shared and spent.
why? because its a “salary advance”….if you spend all your December advance salary on December 10th…Jaunary becomes a long month.
Let me be clearer, if we assume this $15b will be shared and distributed via FAAC to a state like Imo State, then Mr Rochas Okorocha will spend it all…. today. Thus this cash should be escrowed, invested and released to the CRF/FAAC on accrual basis.
DO NOT SPEND THIS CASH…INVEST IT, USE IT AS GUARANTEE…DONT SHARE & SPEND IT ALL TODAY