The African Export Import Bank (Afreximbank) has made an additional disbursement of $925 million to the Nigerian National Petroleum Company Limited (NNPCL) as part of a,
syndicated $3.3 billion crude oil-backed prepayment facility.
This brings the total disbursement to $3.175 billion. Afreximbank said the deal was the largest crude oil-backed facility in Nigeria and one of the largest in Africa.
The pan-African lender has been tapping oil traders, to finance a $3.3 billion loan to the NNPCL after the company approached it for the facility last August, to help government’s efforts in sustaining the Naira.
The naira had hit 1,000 to the dollar in the black market at that time the NNPCL approached Afreximbank. By Thursday, the naira was quoted as low as,1,498 per dollar.
Afreximbank said the fund was raised from a consortium of crude oil off-taker lenders, including Oando Group and Sahara Energy Resources Limited.
Prof Benedict Oramah, President of Afreximbank said the milestone achieved so far on the facility demonstrates the Bank’s capabilities in performing its role as a crucial development partner for Africa. He said that the funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities.
Mele Kyari, Group CEO of NNPCL commended Afreximbank. He said the disbursement of the fund indicates the confidence reposed in the company by Afreximbank and its interest in supporting Nigeria’s economic growth.