NNPCL Obtains $3bn Afrexim Loan to Strengthen Naira

NNPCL on Wednesday said the signing was conducted at the bank’s headquarters in Cairo, Egypt.

By Deborah Hassan

365Daily – The Nigerian National Petroleum Company Limited (NNPCL) on Wednesday signed a commitment letter and term sheet with the Afrexim Bank for an emergency $3bn crude oil repayment loan.

This is expected to bring some relief to the naira which on Tuesday appreciated by N55 to $1 at the parallel market.

A statement issued by the NNPCL on Wednesday said the signing was conducted at the bank’s headquarters in Cairo, Egypt.

NNPCL explained that “NNPC Ltd and Afrexim Bank have jointly signed a commitment letter and Termsheet for an emergency $ 3 billion crude oil repayment loan.”

It further said that “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 stabilizing the exchange rate market.”

This new development may be part of President Bola Ahmed Tinubu’s steps to address the forex challenge in the country.

He had promised measures that will control rising exchange rate which posed a threat to the price of the Premium Motor Spirit (PMS).

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