The corporation claimed that with the help of the loan, it will be able to assist the Federal Government with its ongoing monetary and fiscal reforms aimed at regulating the exchange rate market.
African Export-Import Bank (AFREXIM) Bank has granted the Nigerian National Petroleum Company (NNPC) Limited a $3 billion Emergency Crude Repayment Loan.
The commitment letter, which was signed at the AFREXIM Bank’s headquarters in Cairo, Egypt, on Wednesday, will allow the NNPC to support the Federal Government’s ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market, according to a brief statement announcing the agreement.
“The NNPC Ltd. and @afreximbank have jointly signed a commitment letter and term sheet for an emergency $3 billion crude oil repayment loan,” the succinct statement reads.
The signing, which occurred today at the bank’s head office in Cairo, Egypt, will allow the NNPC Ltd. to support the Federal Government in its continuing fiscal and monetary policy measures intended to stabilise the exchange rate market.
The NNPCL loan agreement comes after the acting governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, stated on Monday that the top bank would be taking action to increase liquidity in the foreign exchange market over the next few days.
Shonubi revealed that he had met with President Bola Tinubu, who he claimed expressed concern about market changes and how they might affect Nigerians.
The acting CBN governor expressed his opinion that speculative demand is primarily responsible for market movements and expressed confidence that the actions that will be taken soon will have a major effect on the market.
Since the Tinubu administration eliminated the petrol subsidy and unified all sectors of the foreign exchange market, the value of the naira has fallen significantly. Since then, the rate of exchange between a dollar and the naira has increased from about 451 to 785.
In his July 31 national broadcast, President Tinubu stated that his administration is keeping an eye on the effects of currency rates and inflation in the price of Premium Motor Spirit (PMS), also known as petrol, and will take action as needed.
We keep an eye on how inflation and exchange rates affect the price of petrol. We will step in if and when it is required. We are leaving the night to enter a brand-new, wonderful day, I can guarantee you, my dear citizens, Tinubu had stated.
