COST OF FUEL TO DROP AS NNPC LTD CLARIFIES $3BILLION DOLLAR EMERGENCY AFREXIMBANK LOAN.

The Nigerian National Petroleum Corporation Ltd Has Given Further Clarifications On The $3Billion Emergency Crude Repayment Loan It Signed With Afreximbank In Cairo Egypt On Wednesday.

The Corporation In Given Clarity On The Loan said, The Loan Is Not A Crude-For-Refined Product Swap, But An Upfront Cash Loan Against Proceeds From A Limited Amount Of Future Crude Oil Production.

On Whether The Loan Is Risky For The NNPC Ltd, Or The Nigerian Treasury, The Corporation In It’s Verified Social Media Handle Monitored By Energy News Stream, On Thursday, Said The Exposure For The NNPC Ltd Remains Limited , Covering Just A Fraction Of Their Entitlements.

The $3Billion Dollar Loan, The Corporation Says, Will Assist The NNPC Ltd In Settling Taxes And Royalties In Advance, While Also Equipping The Federal Government With Necessary Dollar Liquidity To Stabilize The Naira, With Limited Risk.

On Whether The Loan Will Affect Fuel Prices, The Management Of The NNPC Ltd Said, The Loan Will Go A Long Way In Strengthening The Naira, Which Will Subsequently Help To Reduce The Cost Of Fuel, With High Chances Of Halting Further Increase In The Cost Of The Product In The Face Of An Appreciated Naira Value.

The Corporation Also Noted That The Deregulation Policy Of Government Remains On Cause, With No Room For A Possible Return Of Subsidy, Now, Or In The Future.