The Nigerian National Petroleum Company Limited (NNPC) has announced a $3.3 billion crude oil-backed loan dealaimed at stabilizing the nation’s foreign exchange market and improving dollar liquidity.
The facility, secured through the African Export-Import Bank (Afreximbank), comes as Nigeria battles persistent forex shortages and naira volatility.
NNPC Group CEO, Mele Kyari, said the loan would be repaid with future crude oil sales, describing it as a strategic move to support economic recovery.
He noted that the deal would provide immediate relief for the Central Bank of Nigeria (CBN) in meeting forex obligations while ensuring the oil giant maintains stable operations.
Economic analysts say the loan could help reduce pressure on the naira, attract investor confidence, and create a temporary cushion for businesses dependent on imports.
However, concerns remain about the sustainability of oil-backed loans and their long-term impact on national debt.
The NNPC assured Nigerians that the repayment structure was carefully designed to avoid straining the country’s oil revenues.
