Nigeria is poised to secure a $1.05 billion syndicated loan, backed by oil, from the African Export-Import Bank next month.
This loan is a component of a larger $3.3 billion prepayment facility orchestrated by Afreximbank, with repayment conditions linked to crude shipments from the Nigerian National Petroleum Company Ltd.
Denys Denya, Afreximbank’s Senior Executive Vice President for Finance, Administration, and Banking, affirmed the verification of crude availability, paving the way for the final disbursement of the balance within the upcoming month, according to Bloomberg.
The primary objective of the loan is to stimulate Nigeria’s economy and bolster the availability of foreign currency in the local forex market. A significant portion of the loan, approximately two-thirds, had already been disbursed in January.
This financial initiative is crafted to provide Nigeria with immediate capital based on future oil production, offering vital support to the nation’s economy currently facing challenges.