Forex Crisis: NNPCL Secures $3 Billion Crude Oil Repayment Loan To Stabilize Naira

Following the current forex crisis in the oil and gas industry, the Nigerian National Petroleum Company (NNPC) Limited has taken an urgent step to arrest the situation.

The national oil company on Wednesday disclosed that it had secured an emergency $3 billion crude oil repayment loan to stabilise the country’s exchange rates.

Naija News reports that NNPCL took to Twitter to announce that it secured $3 billion from AFREXIM Bank, the trade finance bank for Africa.

The company said the money will be used to increase the value of the naira at the international market.

NNPCL wrote, “Relief For The Naira: NNPC Ltd Secures $3billion Emergency Crude Repayment Loan from AFREXIM Bank.

“The NNPC Ltd. and @afreximbank 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.”

Oil marketers on Sunday revealed that petrol might sell between N680/litre and N720/litre in the coming weeks should the dollar continue to trade from N910 to N950 at the parallel market.

CBN To Take New Measures To Stabilize Naira

In other news, the Central Bank of Nigeria (CBN) on Tuesday said it is set to take new measures to stabilize the naira against the dollar

The acting Governor of the CBN, Folashodun Shonubi, stated this in a chat with the State House correspondents on Monday after a meeting with President Bola Tinubu at the presidential villa, Abuja.

Shonubi said the apex bank is poised to reverse the naira’s slide as it has lined up intervention measures that will be unveiled in the next few days.

He warned that the government would come down hard on those involved in underhand undertaking in the foreign exchange market, including the parallel market.

Shonubi affirmed that the president is concerned about the development in the market and its effect on the people, saying that he discussed what could be done to stabilize the naira with the president.