Nigeria to receive balance of $1.05bln oil-backed Afrexim bank loan

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NIGERIA is set to receive the balance $1.05 billion from a $3.3 billion Afrexim bank loan backed by oil revenues by the end of May, aiming to rejuvenate the economy and enhance the availability of foreign currency in the domestic exchange market.

According to Nairametrics, the Senior Executive Vice-President for Finance, Administration and Banking at Afreximbank, Denys Denya said the bank has verified the crude availability and would release the balance next month.

He 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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This amount is the balance of a $3.3 billion prepayment scheme planned by the African Export-Import Bank, which will be repaid through crude oil shipments from the National Petroleum Company.

Furthermore, the federal government noted that the loan would be paid with crude oil set a $65 per barrel and had earmarked around 90,000 barrels of crude oil for the process.

The National Nigerian Petroleum Company Limited (NNPCL) has stated that the loan agreement will not have a major impact on future government revenues from oil sales.