NNPC secures $3bn Afreximbank loan to strengthen naira

The Nigerian National Petroleum Corporation (NNPC) Limited on Wednesday secured a $3 billion emergency crude repayment loan from the African Export-Import Bank (Afreximbank) to stabilise the naira.

The company confirmed the development in a terse statement in Abuja.

Ripples Nigeria gathered that the loan would be repaid with crude oil at an interest rate of eight percent to 11 percent.

The Central Bank of Nigeria (CBN) had on Monday promised to initiate measures to stabilise the naira and strengthen the foreign exchange market in the coming days.

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The apex gave the assurance amidst fears that the Naira would trade at N950/$ in the parallel market.

The statement read: “The NNPC Ltd. and Afrexim 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.”

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