The Nigerian National Petroleum Corporation Limited has obtained a $3 billion loan for repaying crude oil, aiming to bolster the naira and stabilize the foreign exchange market.

NNPC Limited has secured a crude-for-cash funding of $3 billion from AFRIEXIM bank in Cairo, Egypt.

A commitment letter and Termsheet were jointly signed by NNPC Ltd. and AfriEXIM bank, paving the way for an emergency crude oil repayment loan.

The signing ceremony took place at the bank’s Cairo headquarters and will provide immediate disbursement to support the Federal Government’s fiscal and monetary reforms, aimed at stabilizing the exchange rate market.

This loan is expected to stabilize the foreign exchange market, meet forex demand, and enhance the value of the Nigerian currency.

Additionally, it will prevent Nigeria from seeking loans from the International Monetary Fund (IMF) and offer relief to the local currency, which recently experienced a significant depreciation against the dollar.

By Chinedu

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