The federal government has finalized arrangements to receive a $1.05 billion syndicated loan backed by oil by the end of May 2024. This loan is part of a $3.3 billion pre-export finance facility arranged by the Nigerian National Petroleum Company (NNPC) Ltd and facilitated by the African Export-Import Bank (Afreximbank) in January 2024.
The government has pledged 164.25 million barrels of crude oil at 90,000 barrels per day from 2024 to repay the loan. Denys Denya, senior executive vice president for finance, administration, and banking at Afreximbank, confirmed the verification of crude availability and expects to finalize the release of the balance in the next month.
Additionally, Afreximbank is finalizing a $200 million funding plan to support the East African crude oil pipeline linking Uganda’s oil fields to Tanzania’s port of Tanga. Despite criticism from climate activists, the project is moving forward with participation from commercial banks and oil traders, most of which have secured internal approvals.
Source: Vanguard