In May of this year, Nigeria will receive a $1.05 billion loan from the African Export-Import Bank (Afreximbank) as part of a $3.3 billion prepayment facility arranged by the Nigerian National Petroleum Company Limited (NNPCL).
The funds will be repaid using crude cargo from the NNPCL.
Recall that two-thirds of the largest syndicated loan raised by Africa’s biggest oil producer was disbursed in January.
Afreximbank’s senior executive vice president for Finance, Administration, and Banking, Denys Denya, said the bank has verified the crude availability and will release the balance next month.
He stated, “The verification of the crude availability has happened, so we expect to finalise the release of the balance in the next month. Based on future production, you get the money now.”
This amount is the balance of a $3.3 billion prepayment scheme planned by the African Export-Import Bank, which will be repaid through crude oil shipments from NNPCL.
This syndicated loan will be backed by Nigeria’s oil reserves, providing the country with vital funds to revive its economy and address the shortage of hard currency.
Foreign currency inflow is anticipated to stabilize the local foreign exchange market, facilitating easier importation of goods and international trade for businesses. This could subsequently ignite economic activity and foster growth.
