Forex crisis: NNPCL secures $3bn loan to stabilise naira

The Nigerian National Petroleum Corporation Limited has secured a $3 billion crude repayment loan to support the naira and stabilise the foreign exchange market.

A terse statement posted on the official account of the company on X (formerly known as Twitter) said on Wednesday.

The statement noted that the oil company secured the funding from the headquarters of the African Export-Import Bank in Cairo.

“The NNPC Ltd. and AFREXIM bank have jointly signed a commitment letter and Termsheet for an emergency $3 billion crude oil repayment loan,” NNPCL said in a terse statement on Wednesday.

“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 stabilising the exchange rate market,” it added.

The move followed the announcement by the Central Bank of Nigeria that it had secured the President’s directive to stabilise the Naira.

The Acting Governor of the apex bank, Folashodun Shonubi in an interview with State House reporters had said the volatility of the naira in the parallel market was not solely driven by economic factors, but also speculative demand.