The Nigerian National Petroleum Company Limited, NNPCL has secured an urgent $3 billion loan as President Bola Tinubu-led government works towards stabilizing the pump price of fuel and the country’s currency value at the Forex market, News About Nigeria report.
Making this disclosure in a statement made available on its official Twitter page, NNPCL said that the limited company signed a commitment letter and term sheet with Afreximbank.
The signing took place on Wednesday at the bank’s headquarters in Cairo, Egypt, according to the statement from the NNPCL.
“The NNPC Ltd. and @afreximbank have jointly signed a commitment letter and Termsheet for an emergency $3billion 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,” statement by NNPCL read.
The most recent action is part of the President Bola Tinubu-led administration’s efforts to ease the misery that Nigerians have been experiencing as a result of the recent elimination of fuel subsidy.
The facility will offer some speedy disbursement, according to NNPCL, to support the Federal Government’s ongoing fiscal and monetary policy initiatives intended to stabilize the exchange rate market.
The loan will also enable the government to meet foreign exchange demands, which is expected to assist stabilize the foreign exchange market and increase the value of the naira.
Recall that the pump price of fuel had risen from N189 per liter to over N600 a liter since President Tinubu assumed office. However, the president has promised palliative measures in addition to its plans to increase the country’s minimum wage.
Relief For The Naira: NNPC Ltd Secures $3billion Emergency Crude Repayment Loan from AFREXIM Bank
The NNPC Ltd. and @afreximbank have jointly signed a commitment letter and Termsheet for an emergency $3billion crude oil repayment loan.
The signing, which took place… pic.twitter.com/KJBsVnZFkJ
— NNPC Limited (@nnpclimited) August 16, 2023