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NNPC Secures $3 Billion Oil-For-Cash Loan To Stabilise Naira
The NNPC Ltd. and AfriEXIM bank have jointly signed a commitment letter and Term sheet for an emergency $3 billion crude oil repayment loan.
The Nigerian National Petroleum Corporation (NNPC) Limited has successfully secured a substantial $3 billion emergency crude repayment loan to robust support for the Naira and stabilize the foreign exchange market.
This development comes in the wake of the Naira’s crash to an unprecedented low, plummeting to a staggering N950 in the parallel market just last week.
The NNPC has officially revealed that it has entered into a significant agreement, finalizing a commitment letter and term sheet with Afrexim Bank for a crucial $3 billion crude oil repayment loan. The deal was formally concluded at the esteemed headquarters of the bank, situated in Cairo, Egypt.
“The NNPC Ltd. and AfriEXIM bank have jointly signed a commitment letter and Term sheet 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.”
This move is anticipated to spare Nigeria from the need to seek loans from the International Monetary Fund (IMF), potentially offering relief to the local currency.
The Nigerian Naira has experienced a substantial depreciation against the dollar in the past week, and this development aims to alleviate that situation.