Afreximbank and the Nigeria National Petroleum Company Ltd. have joined forces to sign a commitment letter and term sheet for an urgent $3 billion crude oil repayment loan.
The signing took place on Wednesday at the bank’s headquarters in Cairo, Egypt, according to a statement from the NNPCL.
“The NNPC Ltd. and @afreximbank have jointly signed a commitment letter and Term Sheet for an emergency $3billion 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,” statement by NNPCL read.
The most recent action comes as the President Bola Tinubu-led government works to stabilise the value of the naira on the foreign exchange market and as it continues to consider steps to stabilise the price of fuel at the pump.
In order to support the Federal Government’s continuing fiscal and monetary policy measures aimed at stabilising the exchange rate market, the facility will provide some rapid disbursement, according to NNPCL.
Additionally, the government will be able to fulfill foreign exchange demand thanks to the loan, which is also anticipated to help calm the foreign exchange market and raise the value of the naira.
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