The Naira on Wednesday got some relief as the Nigerian National Petroleum Company Limited (NNPCL) signed a commitment letter and term sheet with the Afrexim Bank for an emergency $3bn crude oil repayment loan.
According to a very brief statement from the NNPCL, the signing was conducted in the bank’s headquarters in Cairo, Egypt.
The loan is expected to provide some immediate disbursement that will enable the NNPCL to assist the Federal Government in its ongoing fiscal and monetary policy reforms targeted at foreign exchange market stabilization.
NNPCL noted that “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.”
President Bola Ahmed Tinubu this week pledged to take steps to address the forex challenge in the country.
He promised that the measures will tame the soaring exchange rate which posed a threat to the price of the Premium Motor Spirit (PMS).
Although analysts and stakeholders were certain that Naira would further crash at the foreign exchange market, he insisted his policies will bring respite.
As of Tuesday, the naira had appreciated by N55 to $1 at the parallel market.