Mr Ajuri Ngelale, Special Adviser to President Bola Tinubu on Media and Publicity has made clarifications on why the Nigerian National Petroleum Corporation (NNPC) Limited secured a $3 billion crude repayment loan from Afrexim bank.
TheNewsGuru.com (TNG) reports Mr Ngelale made the clarifications on Wednesday via X shortly after NNPC Limited announced signing the commitment letter and Termsheet for the emergency $3 billion crude oil repayment loan with Afrexim.
According to the presidential aide, the emergency $3 billion crude oil repayment is to enable NNPC Limited to defray taxes and royalties in advance and provide the government with Dollar liquidity to stabilize the Naira via incremental releases based on the government’s needs.
Ngelale added that a stronger Naira means lower fuel costs, which he said will be a major buffer against the need to re-engage in the subsidy regime.
“This new FX accretion is to enable NNPCL defray taxes & royalties in advance and provide the FGN w/ USD liquidity to stabilize NGN via incremental releases based on FGN needs. Stronger NGN = Lower Fuel Costs. This is a major buffer against the need to re-engage in subsidy regime,” posted on X, formerly Twitter.
This new FX accretion is to enable NNPCL defray taxes & royalties in advance and provide the FGN w/ USD liquidity to stabilize NGN via incremental releases based on FGN needs. Stronger NGN = Lower Fuel Costs. This is a major buffer against the need to re-engage in subsidy regime. pic.twitter.com/D9xoylRyhK
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— Ajuri Ngelale (@AjuriNgelale) August 16, 2023