The Nigerian National Petroleum Company Limited (NNPCL) said it has secured a $3bn emergency loan from the African Export-Import Bank (Afrexim) to ease pressure on the Naira.
At an event held in Cairo, Egypt, both parties jointly signed a commitment letter and Termsheet for the emergency loan of $3billion.
This transaction will provide some immediate disbursement that will help NNPCL support the federal government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market.
The move is expected to boost foreign exchange liquidity into the country and will further drive down the exchange rate between the naira and the dollar.
This is the fourth transaction being consummated between NNPCL and AFREXIM Bank over the last 3 years and goes to further consolidate the mutual relationship between the two entities.
Both Nigeria and NNPCL are shareholders in AFREXIM Bank, with sole purpose of enhancing investments and growing prosperity in Africa.
The agreement for the loan which was sealed on Wednesday in Cairo, saw the Group Chief Executive Officer of NNPC Ltd, Mallam signing for the National Oil Company while Dr George Elimbi, Executive Vice President Afreximbank signed for the bank.
The deal is coming about 17 months after the NNPCL secured a $5bn funding commitment from the African Export-Import Bank (Afreximbank) to finance major investments in Nigeria’s upstream sector.
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