Nigeria to last tranche of $3.3bn Afreximbank loan in May

Omeiza Bilal

Nigeria is set to receive $1.05 billion from a syndicated loan backed by oil by the end of May to help revive its economy and boost the supply of hard currency on the local foreign exchange market.

The African Export-Import Bank arranged the funds as part of a $3.3 billion prepayment facility, which Nigeria National Petroleum Company Limited (NNPCL) will use to repay.

An initial disbursement of $2.25 billion has been made.

Two-thirds of the largest syndicated loan raised by Africa’s biggest oil producer was disbursed in January, signaling a strong commitment to Nigeria’s economic stabilization efforts.

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

Nigeria’s struggling economy will receive immediate funds from this strategic financial manoeuvre, which is based on future oil production.