In what appears like a boost for the naira, the Nigerian National Petroleum Company (NNPC) Limited and the African Export-Import Bank (Afreximbank) have jointly signed a commitment letter and Termsheet for an emergency $ 3 billion crude oil repayment loan.
The signing, which took place today at Afreximbank’s headquarters in Cairo, Egypt, will provide some immediate disbursement that will enable the NNPC Ltd. to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilizing the exchange rate market.
This disclosure is contained in a statement issued by NNPC on Wednesday, August 16, 2023, and can be seen on its official Twitter account.
This might not be unconnected to an earlier pronouncement by the acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, a few days ago, that the apex bank had secured the President’s directive to improve liquidity in the foreign exchange market and stabilize the naira
Supports ongoing fiscal, monetary reforms
The NNPC in a terse statement said,
- “The NNPC Ltd. and AFREXIM bank have jointly signed a commitment letter and Termsheet for an emergency $3 billion crude oil repayment loan.
- “The signing, which took place today at the bank’s headquarters in Cairo, Egypt, will provide some immediate disbursement that will enable the NNPC Ltd. to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market.’’
The loan with the expected dollar inflow will add liquidity to the foreign exchange market and bring some respite to the naira which had depreciated significantly against the dollar over the past week.
I am very happy with this an improvement.
Why is NNPCL signing loans on behalf of Nigeria? Why not CBN or DMO? We should not go back to the old ways of doing things. What are the repayment terms of this loan and the collateral? Hope it is not intended to clear past swap debts owed by NNPCL.
$3b loan , isn”t enough for for a snake to swallow and bragging of becoming the latest belioneer in town. God have mercy.
Nigeria deltans una do o.
NNPC signing for a whopping $3 billion (yes, three billion Dollars) loan on behalf of Nigerian government. How’s that?
What a crappy idea!!
The whole deal smells very fishy; it stinks.