Business

How oil loans are disrupting Nigeria’s Naira-for-crude deal

Published

Monday, 16 June 2025, 1:31 pm

However, oil-backed loan obligations are now limiting the crude available for local refineries. The Nigerian National Petroleum Company (NNPC) has tied up a significant portion of its crude output in loan agreements, reducing the volume meant for the naira-for-crude arrangement.

This shortage disrupts operations at local refineries, forcing them to turn to more expensive imported crude and undermining the policy’s intended benefits.

The situation calls for careful policy adjustments to balance loan commitments with domestic energy security. Below are key factors illustrating this disruption;

ALSO READ: Nigeria commences crude oil sales in naira to Dangote, other refineries

Loan Commitments Limiting Crude Allocation
NNPC’s oil loan agreements require fixed volumes of crude to secure financing. This contractual commitment reduces the amount available for the naira-for-crude policy, directly impacting domestic crude supply and the operational stability of local refineries.
Operational Strains on Domestic Refineries
Local refineries rely on a steady, affordable supply of crude to operate efficiently. The diversion of crude for loan repayments leads to supply shortages, forcing refineries to scale back production, which increases operational costs and disrupts the domestic energy supply chain.
Heightened Dependency on Imported Crude
With less crude available from domestic sources, refineries must turn to imported oil, which is priced in foreign currency. This shift not only raises costs but also exposes refineries to exchange rate risks, further eroding the intended financial benefits of the policy.

EXPLORE: Nigeria: Africa’s top oil producer, world’s extreme poverty capital

Policy and Contractual Conflicts
The dual obligations of meeting oil loan requirements and maintaining a robust naira-for-crude deal create a policy conflict. Stakeholders are urging a review of current contracts to ensure that loan commitments do not undermine the domestic refining agenda and the broader energy strategy.
Calls for Strategic Recalibration
Industry experts and policymakers advocate for revising oil loan agreements to free up more crude for domestic use. A strategic rebalancing of these contracts would restore the intended supply levels for local refineries and reinforce Nigeria’s energy security.

These insights underscore the urgent need for policy adjustments that reconcile loan obligations with domestic refining goals.

By reconfiguring these arrangements, Nigeria can strengthen its energy security, boost local refining capacity, and fully realize the economic benefits of the naira-for-crude policy.

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Business

FlickerAlgo Launches Global Market Expansion Plan, Accelerating Worldwide Adoption of Smart Trading Technologies

Published

1 hour ago

June 16, 2025

John

FlickerAlgo, a global algorithmic trading platform, has officially launched its strategic expansion into the markets of North America, Europe, Africa, and Southeast Asia, marking a major step toward its vision of becoming a global provider of intelligent financial infrastructure.

This expansion will cover key countries across North America, Europe, the Middle East & Africa (MEA), and Southeast Asia, guided by three core principles: local compliance, regional deployment, and ecosystem collaboration. FlickerAlgo aims to deliver diversified trading and asset management services adapted to nations at different stages of financial development.

North America & Europe: Institutional Integration and Compliance Enhancement

FlickerAlgo will roll out dedicated services for institutional clients, including multi-account management systems, API connectivity, and compliance-focused custodial solutions. The company also plans to establish strategic API collaborations with banks, exchanges, and brokers.

Africa: Mobile-First and Education-Led Development

Target countries: Nigeria, Ghana, South Africa, Kenya

FlickerAlgo will launch mobile-optimized solutions designed for low-bandwidth environments and affordable smartphone usage. The company will initiate the “Flicker Financial Literacy Program”, establish local studios, and build a regional agent network to drive user education and long-term community development.

Southeast Asia: High-Engagement Markets and Crypto Payment Integration

Target countries: Indonesia, Philippines, Vietnam, Thailand

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FlickerAlgo will collaborate with local regulated fintech firms to introduce lightweight smart trading services, tailored to the region’s high activity levels and growing adoption of crypto payment infrastructure.

Global Targets by 2026

Presence in over 30 countries and regions worldwide

More than 1,000,000 registered international users

Strategic partnerships with 50+ local licensed institutions and teams

Diverse global user distribution supporting the rollout of DAO governance mechanisms

We are entering a new era where intelligent finance must be localized for global impact. FlickerAlgo’s mission is to ensure users from every corner of the world can access premium trading technologies on equal terms. — James Carter, Founder & CEO, FlickerAlgo

About FlickerAlgo

FlickerAlgo is a global fintech company specializing in high-frequency trading strategies, autonomous servers, and cross-chain blockchain infrastructure. The company is wholly owned by GO INVEST LLC, a U.S. Securities and Exchange Commission (SEC) registered investment entity, ensuring full compliance with international regulatory standards.

FlickerAlgo is committed to building a global intelligent trading infrastructure powered by AI-driven strategy engines, decentralized asset management, cross-chain deployment, and community-driven governance.

Corporate website:

Contact email: service@FlickerAlgo.com

Name: KHURSHEED Ali

Country, city: Wall Street, New York, USA