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Relief for Naira: NNPCL secures $3bn crude repayment loan from AFREXIM bank

The Nigerian National Petroleum Company Limited (NNPCL) and @afreximbank  have jointly signed a commitment letter and termsheet for an emergency $3 billion crude oil repayment loan.

According to the agreement signed today at the bank’s headquarters in Cairo, Egypt, the AFREXIM will provide some immediate disbursement to the NNPCL to support the Federal Government’s ongoing fiscal and monetary policy reforms to stabilise the foreign exchange rate market.

The development comes on the heels of the Central Bank of Nigeria’s (CBN) plan to intervene in the continued fall of the naira against foreign currencies like the dollar. 

According to the acting governor of the Central Bank of Nigeria, Folashodun Shonubi, the government’s strategy is to come down hard on those involved in underhand undertaking in the foreign exchange market, including the parallel market.

President Bola Tinubu also assured that the government would take measures to maintain the current pump price of Premium Motor Spirit (PMS) in the country without a reversal of its policy on subsidy removal.

As of this morning, the naira appreciated against the dollar to sell at N910/, compared to N942/$ on Tuesday, according to data by AbokiFX, an online platform that tracks the exchange rate on the parallel market.

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