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FX Crisis: Guinness Nigeria Picks $95m Loan

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By Ebitonye Akpodigha

Due to dollar shortages in Nigeria, which has weakened the Naira against the US dollar at the foreign exchange market, Guinness Nigeria has announced receiving a loan of $95 million from its parent company, Diageo.

This is to help organisation cope with the adverse effect of the dollar shortages in Nigeria due to a fall in crude oil prices in the international market.

On Tuesday, Guinness Nigeria announced a loss of over N2 billion in the first half of 2016 because of unfavourable economic situation in the country.

Nigeria has been in recession due to crude oil and economic crisis.

On Wednesday, Guinness Nigeria’s Chief Finance Officer, Mr Ronald Plumridge, stated that the company’s currency needs were bigger than it was able to source locally, which forced its parent company to wade into the matter.

According to Mr Plumridge, the loan was priced at 3-month Libor plus 4.75 percent.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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