The naira is gradually gaining momentum against the dollar as the parallel segment of the foreign exchange (FX) market reacted positively to the $3 billion crude oil repayment loan secured by the Nigerian National Petroleum Company Limited (NNPCL) from Africa Import and Export Bank (AFREXIM) to stabilise the local currency.
Checks by Daily Trust on the FMDQ website show that the naira on Wednesday, August 16, closed at N773 to the dollar at the NAFEX window. It further gained on Thursday and closed N740 to the dollar.
Before the news of the AFREXIM loan deal broke on Wednesday, parallel market FX dealers were buying the green back at N880 while selling at N910.
Otega Ogra, senior special assistant to President Bola Tinubu on Digital/New Media explained in a tweet what the $3billion Emergency Crude Repayment Loan from Afrexim “Will assist NNPC Limited in settling taxes and royalties in advance. It will also equip the Federal Government with the necessary dollar liquidity to stabilise the Naira, with limited risk,” he said.
He added that it will “Strengthened Naira as a result of this initiative will lead to a reduction in fuel costs. This means that if the Naira appreciates in value, the cost of fuel will drop and further increases will be halted,” Ogra added.
