$3bn Afrexim Bank Loan: NNPCL Followed Due Process
Facts have emerged that contrary to reports due process was followed in securing the Nigeria National Petroleum Company Limited (NNPCL) in the $3 Billion Afrexim bank Loan.
The $3 billion loan deal, which was signed in Cairo a frothnight ago is to enable the NNPC Ltd support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market.
Sources close to President Bola Tinubu, Minister of Finance Mr Wale Edun and the Group Chief Executive Officer (GCEO) NNPCL Mallam Mele Kyari 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 who spoke on the condition of anonymity, on Sunday said there was no way that a loan of such magnitude should be negotiated without due process.
According to the source “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 noted that there was no way that 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 pessimistic about the loan,” The Presidency source added.
Continuing the source said all 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.
