Nigeria is set to receive a $1 billion loan from the African Export-Import Bank (Afreximbank) next month as part of a larger crude oil prepayment facility aimed at boosting its foreign exchange reserves and stimulating the economy. The loan is sponsored by the Nigerian National Petroleum Company Limited (NNPCL) and is part of a $3.3 billion facility.
Afreximbank’s senior executive vice president for finance, administration, and banking, Denys Denya, stated that the verification of crude availability has been completed, and they expect to finalize the release of the remaining balance in the coming month. Nigeria will use the funds from the loan to repay using proceeds from the sales of crude oil by NNPCL.
Nigeria has been struggling with foreign currency shortages for years and has been facing challenges in boosting its oil production and diversifying its economy away from crude oil exports. However, with this loan facility, Nigeria hopes to improve its macroeconomic stability and increase investor confidence in its economic potential.
Mele Kolo Kyari, NNPCL Group Chief Executive Officer, highlighted the importance of this loan facility in achieving these goals. The participation of global, international, and regional syndication firms in the loan is a testament to market confidence in Nigeria’s economic potential.
