Emmanuel OchayiIn a significant development, the National Economic Council (NEC) has given the green light to the $3 billion emergency loan-for-crude oil secured by the Nigerian National Petroleum Company (NNPC) Limited back in August.
The purpose? To bring stability to the beleaguered naira, which has seen tumultuous times in both the parallel market and the Investors & Exporters (I&E) window.
Speaking directly to State House correspondents following the 136th NEC meeting at the Aso Rock Presidential Villa, Abuja, Nasarawa State Governor Abdullahi Sule expressed confidence in the plan.
He stated, “So, we are very confident and we still believe very strongly that with the plan that will come out and with all these items that have been listed on the improvement of revenue, the $3bn shall be useful to us down the line.”
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As a reminder, the NNPC announced the $3 billion loan agreement with the African Export-Import Bank (Afreximbank) on August 16, 2023. Unlike a crude-for-refined products swap, this upfront cash loan is backed by future crude oil production.
The signing in Cairo, Egypt, aimed to provide immediate disbursement to support the Federal Government’s fiscal and monetary policy reforms, exchange rate stabilization, and tax settlements.
In related news, Reuters recently reported that AfreximBank is actively engaging with oil traders to secure the crucial $3 billion loan, which plays a pivotal role in bolstering Nigeria’s state oil company and stabilizing the depreciating naira.
With the naira recently hitting a record N1000/$1 in the foreign exchange market, this development comes as a ray of hope for Nigeria’s economic stability.
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