NNPCL Secures Emergency $3 Billion Loan to Stabilize Foreign Exchange Market

Nigerian National Petroleum Company Limited (NNPCL) has secured an emergency $3 billion crude oil repayment loan from AFREXIM Bank.

The emergency, according to the NNPCL is to assist federal government in its planned intervention in the foreign exchange market.

NNPCL says the agreement was signed on Wednesday, at the headquarters of AFREXIM Bank in Cairo, Egyptian capital.

According to the NNPCL, the emergency loan would provide some immediate disbursement that will enable it to support the federal government in its ongoing fiscal and monetary policy reforms aimed at stabilizing the exchange rate market.

The NNPCL loan deal is coming after the acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi,  on Monday promised that the apex bank will, in the next few days, be taking steps to improve the liquidity in the foreign exchange market.

Read Also:

Marketers Taking Delivery Of Their Imported Petrol To Break NNPC Monopoly

Shonubi disclosed that he had met with President Bola Tinubu, whom he said voiced his concern regarding developments in the market and its impact on Nigerians.

The acting CBN governor shared his belief that the changes in the market are driven mostly by speculative demand and was confident that the steps that will be implemented soon will significantly impact the market.

The naira has hit a significant decline since the Tinubu administration ended petrol subsidy and unified all segments of foreign exchange market. The exchange of a dollar to naira has since risen from around 451 naira to a dollar to 785 naira.

President Tinubu had during his nationwide broadcast on July 31, said his government is monitoring the effects of exchange rates and inflation in Premium Motor Spirit (PMS) aka petrol prices and will intervene when necessary.