APA – Lagos (Nigeria)
The Nigerian National Petroleum Company Limited (NNPC Ltd) and Afreximbank have signed a commitment letter and term sheet for an emergency $3 billion crude oil repayment loan.
The statement by the NNPC Ltd said that the two companies signed the agreement on Wednesday in Cairo, Egypt and that the facility would cushion the effect of the hike in petrol price and the scarcity of forex, associated with the free float of the Naira, in line with new administration’s promise of harmonising various exchange rates.
It explained that the emergency $3bn crude oil repayment loan would provide some immediate disbursements and that it would enable the NNPC Ltd to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market.
President Tinubu had on Tuesday assured Nigerians that there would be no further increase in the pump price of petrol, in spite of the fuel subsidy removal.
Meanwhile, local media reports on Thursday said that Mr O’tega Ogra, Senior Special Assistant to the President on Digital/New Media stated through his twitter handle that the deal with Afreximbank would enable the NNPC Ltd to defray taxes and loyalties in advance.
Ogra said it would also provide the government with dollar liquidity to stabilise the naira with limited risk.
According to Ogra, the funds would be released in stages or tranches based on the specific needs and requirements of the Federal Government and that a stronger Naira will result in lower prices from the current level, making subsidies unnecessary.
“The deregulation policy remains unchanged,” Ogra added.
GIK/APA
Nigeria: NNPC Ltd. secures $3bn emergency crude repayment loan from Afreximbank
