The Nigerian National Petroleum Company (NNPC) Limited has secured a $3 billion Emergency Crude Repayment Loan from African Export-Import Bank (AFREXIM) Bank.
The company said the agreement was jointly signed by both parties at the bank’s headquarters in Cairo, Egypt.
NNPC Limited, in a statement made available to newsmen, explained that the loan “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 NNPCL loan deal is coming after the acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, promised that the apex bank will in the next few days, be taking steps to improve the liquidity in the foreign exchange market.
Shonubi added 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 the 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 during his nationwide broadcast on July 31, said his government is monitoring the effects of exchange rates and inflation in petrol prices and will intervene when necessary.
“We are also monitoring the effects of exchange rates and inflation on gasoline prices. If and when necessary, we will intervene. I assure you, my fellow countrymen and women, that we are exiting the darkness to enter a new and glorious dawn.”