CBN will spend $3bn loan to stabilise economy

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The National Economic Council on Thursday affirmed that the $3bn emergency loan-for-crude oil the Federal Government secured in August would be deployed to stabilise the naira, whose value has continued to fluctuate in the Investors & Exporters’ window and worsened in the parallel market, hitting N1000/$ earlier this month.

Addressing State House correspondents after the 136th NEC meeting, which was held at the Aso Rock Presidential Villa, Abuja, the Nasarawa State Governor, Abdullahi Sule, said, “So, we are very confident and we still believe very strongly that with the plan that will come out and with all these items that have been listed on the improvement of revenue, the $3bn shall be useful to us down the line.”

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On August 16, the Nigerian National Petroleum Company Limited revealed that it secured an emergency $3bn crude repayment loan from Afrexim Bank to relieve pressure on the naira. It said the loan would enable it to settle taxes and royalties in advance.

It would also equip the Federal Government with the necessary dollar liquidity to stabilise the naira, with limited risk. However, the naira has continued to fluctuate in the I&E window and worsened at the parallel market, hitting N1000/$ the week before last.

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