The NNPC Ltd. and the African Export-Import Bank (Afreximbank) have jointly signed a commitment letter and Term sheet for an emergency $3billion crude oil repayment loan, a statement by the NNPC Ltd (NNPCL) said.
The signing, which took place on Wednesday, August 16, at the bank’s headquarters in Cairo, Egypt, will provide some immediate disbursement that will enable the NNPCL. to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market, the statement informed.
It is expected that the transaction will boost foreign exchange liquidity into the country and will further drive down the exchange rate between the naira and the dollar, some reports say.
This is the fourth transaction that has been sealed between NNPCL and AFREXIM Bank over the last 3 years, an institution in which both Nigeria and NNPCL are shareholders. The deal is also coming about 17 months after the NNPCL secured a $5bn funding commitment from the bank to finance major investments in Nigeria’s upstream sector.
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