The Nigerian National Petroleum Corporation (NNPC) yesterday signed a five-year agreement worth $1.04 billion with the African Export–Import Bank (Afreximbank), in a deal that has been described as the biggest so far at the ongoing Intra-African Trade Fair in Durban, South Africa.

This is just as the Group Managing Director of the NNPC, Mallam Mele Kyari yesterday predicted that crude oil prices may hit $100 per barrel mark in the coming months as global inventory tightens and the Organisation of Petroleum Exporting Countries (OPEC) continues to resist pressure to pump more oil into the market.

Mallam Mele Kyari

In terms of the NNPC and Afreximbank deal, it was gathered that it did not involve exploration of crude oil, but mainly for trade financing and export of the crude produced by the national oil company, although details still remained sketchy last night.

It was reported that the $1.04 billion would be repaid to the continental bank with about 25,000bpd of crude oil produced by the state oil company.

Benedict Oramah president of Afreximbank said the deal would benefit Nigeria, promising to fund similar projects across Africa.

The bank also signed a $250 million contract with an aviation logistics company, Blue Horn, to fund the upgrading of three airports in Nigeria and another $270 deal for oil exploration activities with Mars E&P.

The Intra-African Trade Fair (IATF2021) kicked off on 15th November with the theme: “Building Bridges for a successful AfCFTA”, and has so far attracted thousands of visitors to the Durban International Convention Centre where it’s taking place.

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