Nigerian Business Magnate, Benedict Murray-Bruce, is suggesting that, the National Assembly pass laws “to prevent any present or future President from engaging in crude oil swaps that the Buhari engaged in”.
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| Nigerian Businessman and Founder of Silverbird Group, Benedict Murray-Bruce |
The Founder of Silverbird Group, said, “crude oil swap should never occur again.”
Also, “no administration should be allowed to just print Naira ad infinitum without recourse to the National Assembly”, this is what is causing the Naira to go “on a downward trajectory”, Murray-Bruce said.
According to globaltrading.enel.com:
A swap is a contract in which two counterparties undertake to make reciprocal periodic payments whose calculation rules and frequency are defined in the contract. Such product is used in order to set the price of the underlying in advance: the buyer and the seller agree to exchange future payments periodically. The first one pays a fixed price while the second one pays a variable price which depends on the market price of the underlying.
Murray-Bruce said: “The crude oil swaps that the Buhari engaged in should not occur again. And the National Assembly should consider passing laws to prevent any present or future President from engaging in it. Why should one administration collect monies ahead of time for future crude contracts? How would salaries be paid? What about infrastructure?
“It should never have occurred in the first place. But now that it has, the focus should not be on probing the previous government. That will generate unnecessary tension. The focus should be on making sure it does not occur again. And that can only happen if we have legal safeguards in place.
“Additionally, no administration should be allowed to just print Naira ad infinitum without recourse to the National Assembly. Part of the reason why the Naira is on a downward trajectory is due to this practice. When money not tied to production goes into circulation, economic destruction results.”
