The Nigerian government is poised to receive $1.05 billion from a syndicated loan backed by oil, expected by the end of May. This loan is part of a larger $3.3 billion "pre-export finance facility" (PxF) arranged by the African Export-Import Bank (Afreximbank) and facilitated by the Nigerian National Petroleum Company (NNPC) Ltd in January 2024. The loan is anticipated to aid in revitalizing the economy and enhancing the foreign exchange market.
Denys Denya, Afreximbank's senior executive vice president for finance, administration, and banking, revealed that the $1.05 billion is the final tranche of funds to be disbursed in the agreement. The oil-for-cash loan deal with NNPC is expected to carry an interest rate of 11.85 percent per annum.
Denya stated, "The verification of the crude availability has happened, so we expect in the next month to finalize the release of the balance. Based on future production, you get the money now."
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