WED, AUGUST 16 2023-theGBJournal |The NNPC Ltd. and African Export Import Bank (Afreximbank) have jointly signed a commitment letter and Termsheet for an emergency $3billion crude oil repayment loan.
The signing, according to the NNPC in a statement, took place today at Afreximbank’s headquarters in Cairo, Egypt.
NNPC said the loan will provide some immediate disbursement that will enable it to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilizing the exchange rate market.
The state oil company is reportedly owing Vitol and BP $3 billion, and analysts say the loan will ”probably” help it repay the debt, ”not necessarily to support the Naira or help the Federal Government in its ongoing fiscal and monetary policy reforms.”
As at June 2023, executives told Reuters that NNPC is six months behind schedule for repayments in the crude oil swap deal, an agreement that allows the sale of crude oil to refiners, who will in turn supply Nigeria with an equivalent worth of petroleum product.
Reports quoting sources say the the NNPC Limited till date have only made cash payments of $200 million in May to some partners, saying that no further payment has been made since then.
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