In a bid to salvage and stabilize the exchange rate and shore up the value of the Naira, the Nigerian National Petroleum Company Limited (NNPCL) says it has intervened by securing a $3 billion loan from Afreximbank.
The NNPC Ltd. and African Export-Import Bank — Afreximbank have jointly signed a commitment letter and term sheet for an emergency $3 billion crude oil repayment loan.
The signing, which took place Wednesdaty at the bank’s headquarters in Cairo, Egypt, will see NNPCL repaying the loan with crude oil at an interest rate between eight per cent and 11 percent.
The NNPC Ltd, in a statement, disclosed that the move became imperative to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilizing the exchange rate market.
The statement given to Persecondnews on Wednesday, said: “The NNPC Ltd and AfriEXIM 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 stabilizing the exchange rate market.”
Persecondnews reports that dollar supply remains thin and scarce thereby piling pressure on the Naira, making the nation’s currency to slump to an all-time low of N950 to a dollar on Friday, according to multiple traders.
However, the Naira bounced back on Wednesday, recovering from N950 to a dollar last week to N890.
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