Nigeria Secures $925 Million Afreximbank Loan to Stabilize Economy

Nigeria has received a significant boost to its economy with an additional $925 million loan from the African Export-Import Bank (Afreximbank). This latest disbursement brings the total funded facility size to $3.175 billion, building on the success of the first accordion tranche of the $3.3 billion facility.

The loan, coordinated by Afreximbank, involves a consortium of crude oil off-taker lenders, including the Oando Group and Sahara Energy Resource Limited. The funding aims to support Nigeria’s macroeconomic stability, long-term economic growth, industrialization, and trade development efforts.

Afreximbank’s President and Chairman, Prof. Benedict Oramah, emphasized the bank’s commitment to supporting African economic growth and stability.

He described the facility as a crucial development partnership for Nigeria, demonstrating the bank’s capabilities in performing its role as a development partner for the continent.

“It reaffirms our commitment to assisting our member states in their efforts to achieve economic growth and stability. This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities.”

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Mele Kyari, NNPC Limited’s Group Chief Executive Officer, expressed gratitude to Afreximbank for its investment philosophy and commitment to funding strategic projects.

He emphasized that the successful disbursement reflects investor confidence in NNPC and Nigeria’s growth objectives.

“The successful disbursement of the first accordion under project Gazelle and its interest in funding viable and strategic projects is a clear indication of investors’ confidence in NNPC and Nigeria’s growth aspirations,” Kyari stated.

The loan is part of the $3.3 billion emergency crude oil repayment loan secured by NNPC Limited in August 2023 to support the Federal Government in stabilizing Nigeria’s exchange rate. The funding is expected to provide further support for Nigeria’s economic development priorities.