The President and Chairman of the Board of Directors of the African Export-Import Bank has denied that the Nigerian National Petroleum Corporation Limited’s $3.3 billion loan from the bank will be repaid at a 12% interest rate. According to him, the loan with its 6% margin is among the greatest values available.
According to Arise News, Oramah disclosed this, calling the claims of repaying the $3 billion loan with $12 billion “ridiculous.” According to him, the loan significantly reduced the FX shortfall and helped to stabilize the financial sector.
Oramah was questioned about the loan’s terms during the interview. In response, he said, “Well, the loan’s interest rate is currently the base rate that, in a sense, controls the cost of money. Hence, you start there and it stays there until you add your margin if Afreximbank or any other party wishes to lend money in dollars.
He added that the loan has a seven-year term, and the margin is 6 per cent. “In actuality, it’s among the most affordable loans available right now.
“We’re talking about a time when interest rates have increased, and all we can hope for is a global decline in inflation before rates begin to decline. Indeed, should those rates drop, the interest rate on this loan will likewise begin to decline. That is what I considered when it came to the loan’s cost.”
According to him, it is open and transparent, with nothing to conceal. Anyone wishing to compare it may do so by comparing the rates on the Nigerian bonds that are now on the market.
In response to concerns and queries from Nigerians over the loan, Oramah made it clear that the loan is effective as he said, “It actually helps acute FX shortage. And you know there are things people do not know, maybe government will not be saying it, but I’m at liberty because we have a justification for doing what we did. It actually helps us stabilize the financial system.”
The president of Afreximbank then discussed the Memorandum of Understanding he had signed with the ministry of health in Nigeria, which aimed to create a $1 billion facility to fund a contribution pool for private investors wishing to participate in the value chain of Nigeria’s health industry.
He explained his thoughts saying, “I always felt that health care is a human right. Since access to quality healthcare is essential to leading a healthful life, everyone on the planet should have it. It is not something we ought to save for the powerful and wealthy alone.”
