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The Nigerian National Petroleum Company (NNPC) Limited has successfully obtained a $3 billion Emergency Crude Repayment Loan from the African Export-Import Bank (AFREXIM Bank).
In a concise disclosure, the NNPC has announced the signing of a commitment letter at AFREXIM Bank’s Cairo headquarters, Egypt. The commitment letter, inked on Wednesday, paves the way for a $3 billion emergency crude oil repayment loan.
The NNPC Ltd. and @afreximbank have collaboratively endorsed this commitment, accompanied by a Term sheet, to facilitate immediate disbursement. This infusion of funds will empower NNPC Ltd. to actively bolster the Federal Government’s ongoing fiscal and monetary policy reforms, strategically directed at the stabilization of the exchange rate market. This pivotal signing event transpired on Wednesday at AFREXIM Bank’s headquarters, located in Cairo, Egypt.
The NNPCL loan deal is unfolding following a commitment from Folashodun Shonubi, the acting Governor of the Central Bank of Nigeria (CBN), who assured on Monday that the apex bank would take prompt measures in the coming days to enhance liquidity in the foreign exchange market.
Shonubi revealed that he recently held discussions with President Bola Tinubu, during which Tinubu expressed his concerns about the market’s developments and their impact on the well-being of Nigerians.
Expressing his conviction, the acting CBN governor attributed the market’s fluctuations primarily to speculative demand. He remained optimistic that the forthcoming measures would wield a significant influence on the market.
Since the termination of petrol subsidies and the unification of all segments of the foreign exchange market under the Tinubu administration, the naira has experienced a notable depreciation. The exchange rate for the dollar to naira has surged from approximately 451 naira to 785 naira.
In his nationwide address on July 31st, President Tinubu stated that his administration is closely observing the impact of exchange rates and inflation on Premium Motor Spirit (PMS), commonly known as petrol prices. He emphasized that his government remains committed to intervening whenever deemed essential.
“We are diligently monitoring the repercussions of exchange rates and inflation on fuel costs. Rest assured, my fellow citizens, that should the need arise, we will take appropriate measures. I want to reassure you all that we are emerging from challenging times and stepping into a promising new era,” President Tinubu affirmed.
