Nigeria to get $1bn Afreximbank loan May

Onwubuke Melvin
Onwubuke Melvin

Nigeria is set to receive the balance of $1.05 billion from a $3.3 billion Afrexim bank loan backed by oil revenues by the end of May

The loan is one part of a larger $3.3 billion prepayment facility, which Afreximbank has set up with the repayment terms relating to crude oil consignments from Nigeria’s National Petroleum Company, according to The Punch.

Bloomberg had reported that Afreximbank’s Senior Executive Vice President for Finance, Administration, and Banking, Denys Denya, had confirmed the verification of crude availability, paving the way for the final release of the balance within the next month.

The loan is intended to restore Nigeria’s economy and increase the supply of hard currency on its domestic foreign exchange markets with two-thirds, already disbursed in January.

Recall that NNPC in a statement last year, said it signed a commitment letter and Term sheet for an emergency $3 billion crude oil repayment loan with Afreximbank.

NNPCL said that the loan would be used to strengthen the currency reserve and provide a more urgent solution for the country’s financial difficulties.

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