Nigeria is set to receive a $1.05bn syndicated loan backed by oil from the African Import Export Bank next month.

The loan is part of a larger $3.3bn prepayment facility arranged by Afreximbank, with repayment terms tied to crude cargoes from the Nigerian National Petroleum Company Ltd.

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

The loan aims at reviving Nigeria’s economy and enhancing the supply of hard currency in the local foreign exchange market. A substantial portion of it — two-thirds, was already disbursed in January.


This financial maneuver is designed to provide Nigeria with immediate funds based on future oil production, offering a lifeline to the country’s struggling economy.

The Nigerian National Petroleum Company Limited, had in January said it would prepay future royalties and taxes to the Federal Government from the $3.3bn financing deal it got from African Export-Import Bank last year.

NNPCL disclosed this in a document titled, ‘Frequently Asked Questions – Project Gazelle’, released by its Chief Corporate Communications Officer, Olufemi Soneye.


On August 17, 2023, The PUNCH reported that the NNPCL announced that it had secured a $3.3bn emergency crude oil repayment loan from the African Export-Import Bank.

It explained that the loan would be used by the oil company to support the Federal Government in stabilising Nigeria’s exchange rate.


The company also stated then that it adopted a lower price benchmark for the $3.3bn crude-for-cash loan to reduce the risk of default and ensure financial stability.

Giving details on the benchmark oil price, the company said the facility was using a conservative crude price of $65/barrel to calculate the allocated crude to be produced and sold in the future.

Brent, the global benchmark for crude, sold at about $90.63/barrel on Monday.

Commenting on the benchmark oil price of $65/barrel for the $3.3bn deal, the national oil firm had said, “This provides a safety margin for price fluctuations in the future.

“NNPC Limited has reserved up to 90,000 barrels of crude for Project Gazelle, ensuring sufficient cash flow for repayment and other financial obligations.

“If oil prices rise, more money will come in from selling the 90,000 barrels, allowing for faster repayment. However, if oil prices fall, the repayment may be slower.

“The quantity of crude earmarked (90,000 barrels) is sized to ensure enough cash is available for the repayment of the facility when it is due. This also ensures that NNPC Limited can meet other cash flow obligations, considering the expected future price of crude oil globally.”

NNPCL also said repayments were strategically planned and tied to future oil sales, with conservative pricing in oil sales contracts mitigating the risks associated with oil price volatility.

Source: https://punchng.com/FG-may-get-$1bn-Afreximbank-loan-in-May

Ipob miscreants said things are expensive because of high fx. Fg is already making efforts to bring the fx to a reasonable rate but same ipob miscreants said it is propaganda. When the "propaganda" mantra stop sticking, they changed mode of operation. Their concern now is how the govt is going about gradual regaining of the Naira and they claim it won't last. Pretty sure when the regaining is sustained, they will say it is gringory obi that advised Tinubu.

I didn't bother to read it..as a trained communicator, I can boldly draw the conclusion that anything loan in Nigeria, is a loan to loot...

people were still the give Nigeria government loan no get sense, and there are the most wicked people to this country.

Masses are not even benefiting from the so called Loan's 😐

Toh

At the end of the day, what will the loan be used for? 2027 project

Who will pay back the loan?

Band A customers (All Nigerians)

If not for oil...., Nigeria wouldn't exist

For what?!

Is it for Ewa? Is it for Garri? Is it for beans?

Loan to be shared & stolen

Richtaiwo:
Ipob miscreants said things are expensive because of high fx. Fg is already making efforts to bring the fx to a reasonable rate but same ipob miscreants said it is propaganda. When the "propaganda" mantra stop sticking, they changed mode of operation. Their concern now is how the govt is going about gradual regaining of the Naira and they claim it won't last. Pretty sure when the regaining is sustained, they will say it is gringory obi that advised Tinubu.

Using FX reserves and loans to defend the Naira isn't sustainable. We're an import-dependent country; how long do you think we can keep this up for?

We need long-lasting solutions, not band aids.

Everyone's dream is for a better Nigeria. Remove your rubbish tribalism from the conversation.

Stop taking unnecessary loans when you just blew 1bn dollars in 18 days just to protect the naira

When the loan finishes how will you defend the Naira ?

You’re hoping Dangote will export more refined oil by then?

Between now and September Dollar may crash to 850 Naira

Coming Christmas may be good one.

But next year the suffering will increase again if FG doesn’t borrow to defend Naira again.

Loans to be pocketed yet nothing to show

Agbado economists at it again. Keep squandering the future of your people.

Instead of cutting down expenses, they borrow more to fund their expensive lifestyle.

hmmm

Oblitz:
If not for oil...., Nigeria wouldn't exist

when there was no oil Nigeria was a better Nation

Richtaiwo:
Ipob miscreants said things are expensive because of high fx. Fg is already making efforts to bring the fx to a reasonable rate but same ipob miscreants said it is propaganda. When the "propaganda" mantra stop sticking, they changed mode of operation. Their concern now is how the govt is going about gradual regaining of the Naira and they claim it won't last. Pretty sure when the regaining is sustained, they will say it is gringory obi that advised Tinubu.

Dumb. Where do apc get all these unintelligent and slow propagandist from. Maybe that why you people are paid peanuts.

socialmediaman:
At the end of the day, what will the loan be used for? 2027 project

Who will pay back the loan?

Band A customers (All Nigerians)

Confirmed..........

They get loans to clear trapped FX funds owed foreign companies and withdraw foreign reserves to clear remittances. This country is just not serious!

The govt is doing what Emefiele was doing. Why they stopped it and crash the naira by themselves is a mystery

Richtaiwo:
Ipob miscreants said things are expensive because of high fx. Fg is already making efforts to bring the fx to a reasonable rate but same ipob miscreants said it is propaganda. When the "propaganda" mantra stop sticking, they changed mode of operation. Their concern now is how the govt is going about gradual regaining of the Naira and they claim it won't last. Pretty sure when the regaining is sustained, they will say it is gringory obi that advised Tinubu.

They keep borrowing, yet nothing to show for it. I hope modalities are in place to repay these loans.

Richtaiwo:
Ipob miscreants said things are expensive because of high fx. Fg is already making efforts to bring the fx to a reasonable rate but same ipob miscreants said it is propaganda. When the "propaganda" mantra stop sticking, they changed mode of operation. Their concern now is how the govt is going about gradual regaining of the Naira and they claim it won't last. Pretty sure when the regaining is sustained, they will say it is gringory obi that advised Tinubu.

Borrowing to shore up the dollar when your government said they floated the naira is foolery

We all knew they would go back to the days of borrowing upandan, so all your efforts in the past 11months is waste

Continue supporting nonsense

Collect more loans and share it among yourselves, that's what APC government is best known for.

What about the whole money retrieved by EFCC? Why can’t they borrow from EFCC?

Joke of a nation. What about the ones saved from Fuel Subsidy? Why did they need loan again?

Using more of the already used oil to borrow more money

Nigeria has a lot of issues, but the main challenge continues to be the looters in power & accountability of wealth.

The thing is, it is not th actual looting that is the main problem, but the utilisation of the looted funds.

The only major investment they do is real estate which is why there are many unutilised lands and buildings that nobody lives in. Or they invest in hotels, clubs and other luxury ventures that do not directly relate to industrialisation. What I call unproductive corruption.

The rest of the funds are stashed abroad and in banks, spent on trips and enjoyment, then spent on wh×res.

Also, there needs to be accountability of wealth. Most very rich Nigerians don't pay appropriate taxes because if they did, they would not be purchasing so much unneeded luxury items. Spending money as you like, but ensure appropriate taxes are paid.


Spending and assets must be tied to source of funds, source of funds must be matched by income, income must be matched by tax payments.

Loan loan loan to defend the naira

More coochie

racerve:


Using FX reserves and loans to defend the Naira isn't sustainable. We're an import-dependent country; how long do you think we can keep this up for?

We need long-lasting solutions, not band aids.

Everyone's dream is for a better Nigeria. Remove your rubbish tribalism from the conversation.

To get us to the level of industrialisation we require,it's going to take quite an effort and painstakingly a while.....you need to get electricity to be more efficient,agric for raw materials also have to be developed,govt bureaucracy,local community dynamics, security......all this will take a while to get around,so the govt needs an urgent solution to mitigate our dwindled economy.

All factors needed to restore the Nigerian Econ can't be done in 4 years.

Richtaiwo:
Ipob miscreants said things are expensive because of high fx. Fg is already making efforts to bring the fx to a reasonable rate but same ipob miscreants said it is propaganda. When the "propaganda" mantra stop sticking, they changed mode of operation. Their concern now is how the govt is going about gradual regaining of the Naira and they claim it won't last. Pretty sure when the regaining is sustained, they will say it is gringory obi that advised Tinubu.

can you tell us how this loan was secured and the collateral Tinubu used to obtain the loan?

what is the loan going to be used for?

Lithiumite:


To get us to the level of industrialisation we require,it's going to take quite an effort and painstakingly a while.....you need to get electricity to be more efficient,agric for raw materials also have to be developed,govt bureaucracy,local community dynamics, security......all this will take a while to get around,so the govt needs an urgent solution to mitigate our dwindled economy.

All factors needed to restore the Nigerian Econ can't be done in 4 years.

They can't be achieved in 10 years sef.