Enhancing dollar liquidity in Nigeria through securitization: prospect and risks

Dollar liquidity in Nigeria has been a huge economic challenge in the country in recent times. As a major step to enhance dollar liquidity in the country, the Federal Government of Nigeria (FGN) announced its plan to securitize its expected dividends for a period of 5 years in Nigeria Liquefied Natural Gas Limited (NLNG) in favor of its lenders, to raise $7 billion. This step holds significant opportunities for the country's economy, but it also comes with inherent risks that need to be carefully evaluated. These opportunities and the possible risks are addressed in this article.