The Nigerian National Petroleum Corporation, NNPC Limited has secured as $3 billion crude repayment loan in order to support the naira and stabilize the foreign exchange market.
NNPC Limited secured the funding from the AFRIEXIM bank headquarters in Cairo.
“The NNPC Ltd. and AfriEXIM bank have jointly signed a commitment letter and Termsheet for an emergency $3 billion crude oil repayment loan,” NNPC said in a terse statement on Wednesday.
“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 followed the announcement by the Central Bank of Nigeria that it had secured the President’s directive to stabilise the Naira.
The Acting Governor of the apex bank, Folashodun Shonubi in an interview with State House reporters had said the volatility of the naira in the parallel market was not solely driven by economic factors, but also speculative demand.