The Nigerian National Petroleum Company, NNPC Limited, and African Export-Import Bank, AFREXIM Bank have signed a $3 billion loan deal.
The loan, according to the NNPCL will be used to stabilize the naira whose value has been fluctuating against the dollar in recent weeks, raising serious concerns among Nigerians.
The Central Bank Governor, Folashodun Sonubi after a meeting with President Bola Ahmed Tinubu, earlier this week in Abuja, the nation’s capital disclosed that efforts are being made to rescue the currency from further depreciating.
The meeting came after petroleum marketers threatened to increase the pump price of petrol due to the rising cost of crude oil at the international market. The situation, the marketers said has been worsened due to the fall in the value of the naira to the dollar.
Analysts insist that the NNPCL deal with AFREXIM Bank is a major step in this direction, they however added that more needed to be done to correct the nation’s monetary policy, particularly the problematic forex market.
According to a terse statement released by NNPC on Wednesday, the oil company said the fund will be used as an emergency fund to stabilize the naira.
The statement said, “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.”
