NEC Explains How NNPC’s $3bn Loan-for-crude Facility Will be Deployed
- NEC said the $3bn emergency loan-for-crude oil earlier secured would be directed at stabilising the naira
- This is as the naira hit N1000/$ at the unofficial market earlier in the month
- There is no certainty yet if a supplementary budget will be required to actualise this
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The National Economic Council on Thursday, September 28, 2023, affirmed that the $3 billion emergency loan-for-crude oil the Federal Government secured in August would be deployed to stabilise the naira.
Abdullahi Sule, the governor of Nasarawa State, said this while addressing the State House correspondents after the 136th NEC meeting held at the Aso Rock Presidential Villa, Abuja.
Source: UGC
This comes after a report that the naira has continued fluctuating in the Investors & Exporters window and worsened in the parallel market, hitting N1000/$ earlier this month.
Legit.ng earlier reported that the company signed crude oil contracts with several entities.
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Financing to allow the company to pay taxes
According to the report, Sule expressed trust in the $3 billion at the Aso Rock Presidential Villa in Abuja.
He said the funding will give the government the crucial dollar liquidity to stabilise the naira risk-aversely.
He added that the financing would allow the company to pay taxes and royalties in full.
Sule said:
“The $3bn that was taken to stabilize the naira. As you have seen we have a new team at the CBN and the new team that is just coming in is asking for a little bit of time to work out the modalities.
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Afrexim Bank seeks buyers for NNPC crude to finance $3bn loan as Dangote speaks of new plan
“It is one thing to take the loan it is another to plan the process of the stabilization because it’s going to take a while.
In response to inquiries about the potential for supplemental funding for the project, he said that any request for supplementary financing would come from whatever was taking place.
Since no budget has been provided to the NEC, he stated that he is unsure of the need for an emergency supplementary budget.
According to an earlier report, the Afrexim Bank seeks to fund the $3 billion loan request by NNPC but needs to find buyers for the company’s crude.
FG Owes NNPC N7.3 Trillion in Fuel Subsidy Debt Following Naira Depreciation
The Nigerian government is the biggest debtor to the Nigerian National Petroleum Company Limited (NNPCL), with over N7 trillion in subsidy debts.
The amount is due to the naira devaluation, which officially exchanges at N734 per dollar.
NNPC management revealed that the Nigerian government owed it about N4.1 trillion.
Source: Legit.ng
