The Nigerian National Petroleum Corporation (NNPC) Limited has secured a N2.3trn ($3 billion) crude repayment loan to support the naira and stabilise the foreign exchange market.
NNPC in a terse statement on Wednesday, August 16, 2023, said the loan was secured from the AFRIEXIM bank headquarters in Cairo, Egypt.
The statement reads; “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.”
The move is expected to boost foreign exchange liquidity into the country and will further drive down the exchange rate between the naira and the dollar.
This is the fourth transaction being consummated between NNPCL and AFREXIM Bank over the last 3 years and goes to further consolidate the mutual relationship between the two entities.
Both Nigeria and NNPCL are shareholders in AFREXIM Bank, with sole purpose of enhancing investments and growing prosperity in Africa.