Forex: NNPCL secures $3bn emergency oil repayment loan

Forex: NNPCL secures $3bn emergency oil repayment loan 

The Nigerian National Petroleum Corporation Limited says it has secured a $3 billion crude oil repayment loan to help in stabilising the naira.

The NNPC Limited signed a Commitment Letter and Term Sheet with AfreximBank for the oil repayment loan on Wednesday.

The company said the agreement was jointly signed by both parties at the bank’s headquarters in Cairo, Egypt.

The NNPC, in a statement obtained by Newstrends, said the loan “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”.

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The Federal Government had reported a 13.6 per cent drop in its daily crude oil production for July, leaving the country seriously short of dollar revenues from crude oil export.

The Nigerian Upstream Petroleum Regulatory Commission said production averaged 1.08 million barrels per day compared to 1.25mbpd recorded in June.

The July production figure was a major setback for the government which has a production target of 1.69 million barrels per day in the 2023 budget. The volume of production was also significantly lower than the 1.7 million barrels per day production quota allocated to the country by the Organisation of Petroleum Exporting Countries.

Forex: NNPCL secures $3bn emergency oil repayment loan