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Nigeria Secures $1B Crude Prepayment Credit from Afreximbank

A $1 billion crude oil prepayment credit will be provided to Nigeria by the African Export-Import Bank (Afreximbank), a multilateral financial institution, aimed at bolstering the country’s foreign reserves. The facility is set to be launched in May 2024.

This loan is part of a larger $3.3 billion crude prepayment arrangement, with Afreximbank having already disbursed $2.25 billion in January 2024. Repayment of the loan will be made by the Nigerian National Petroleum Corporation, the state-owned company, using proceeds from crude sales.

Denys Denya, Senior Vice President for Finance, Administration, and Banking at Afreximbank, stated that the verification of crude availability has been completed, and the organization intends to finalize the release of the balance by next month.

In January, Afreximbank announced, “This financing marks the largest syndicated loan secured by Nigeria in the International market and represents one of the biggest syndicated debts arranged in Africa in recent years.”

Upon the initial loan disbursement, NNPCL Group Chief Executive Officer, Mele Kolo Kyari, said, “The proceeds of the facility have been made available to the Federal Republic of Nigeria as one of several efforts towards improving macro-economic stability.”

“The engagement of global, international, and regional syndication firms underscores the lending market’s interest in financing orchestrated by NNPCL and demonstrates robust market trust in Nigeria,” Kyari further stated

Source: Energy Ghana