The Nigeria National Petroleum Company Limited (NNPCL) insists that it followed due process in securing the recent $3 Billion Afrexim bank Loan.
The $3 billion loan deal, which was signed in Cairo a fortnight ago is to enable the NNPC Ltd support the Federal Government in its ongoing fiscal and monetary policy reforms targeting stabilization of the exchange rate market.
Presidency sources and those from the Ministry of Finance and NNPCL disclosed that the President’s economic team were part of the team that structured the terms agreement for the $3 billion loan.
One of the sources said there was no way that a loan of such magnitude could be negotiated without due process.
“I can confidently tell you that the Minister of Finance and the President are aware of the details of the loan because they actually initiated it. So no cause for alarm,” the source revealed.
It also noted that there was no way a loan of this nature would not be subjected to critical analysis stressing that “those who structured the loan know the implications for the country. So everything was done to ensure that the future of Nigeria was not mortgaged. There is no cause for alarm and those who are expressing fear and pessimism have no reason to do so.
“We understand their fears but we want to assure them that the loan is for the good of NIgeria and that there are no reasons to be persimistic about the loan,” The Presidency source added.
It further added that, “the President and his team of advisers did with the NNPCL $3 billion loan is just for the good of Nigeria. The president is ready to welcome any other sound economic idea from any well meaning Nigerian that will breathe life into the country’s struggling economy. Those criticizing the loan should come up with superior suggestions and if they are good, the President is ready to apply them”.
The nation has battled foreign exchange liquidity leading to the steep fall of the Naira since the unification of the foreign exchange windows by the Central Bank of Nigeria in June. The crash in the value affected the economy, triggering price hikes in the country and impacting access to imported raw materials by real industry operators. The effect is exemplified in the July inflation which peaked at 24.08 per cent.
The agreement for the loan which was sealed on Wednesday in Cairo, saw the Group Chief Executive Officer of NNPC Ltd, Mele Kyari signing for the National Oil Company while George Elimbi, Executive Vice President Afreximbank signed for the bank.
