(West Africa) (3 minutes read)
Nigeria’s state-oil firm NNPC has secured a US$3 billion crude oil repayment loan from Cairo-based Afrexim Bank. The Bank will support the government’s reforms, particularly to stabilize the exchange rate market, which has been volatile for some time
Nigeria’s state-oil firm NNPC has secured a US$3 billion crude oil repayment loan from Cairo-based Afrexim Bank. The Bank will support the government’s reforms, particularly to stabilize the exchange rate market, which has been volatile for some time. The clinching of the emergency loan was reported by the NNPC in a post in X (earlier Twitter) and is designed to shore up the value of the naira.
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Acting central bank governor Folashodun Shonubi said recently that the bank would take measures that would help the currency market and improve dollar liquidity. Neither NNPC nor the Central Bank did not spell out the proposed measures to strengthen the weakening naira. Some proactive interventions are expected shortly.
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The new administration under President Bola Tinubu has been unveiling a number of initiatives designed to stem the dithering state of the economy, such as hyperinflation, unemployment, and devalued naira, and a host of other issues. Dollar liquidity is a major problem. Of late, the West African country has been trying to increase its refining capacity to cut down the import bill. It is also facing black marketing of the dollar as the liquidity has hit the bottom.
