Nigeria is set to receive a $1.05 billion syndicated loan from the African Export-Import Bank next month.
The loan, backed by oil, is part of a larger $3.3 billion prepayment facility arranged by Afreximbank, with repayment terms tied to crude cargoes from the Nigerian National Petroleum Company Ltd.
A report by Bloomberg, quoted Afreximbank’s Senior Executive Vice President for Finance, Administration, and Banking, Denys Denya, to have confirmed the verification of crude availability, paving the way for the final release of the balance within the next month.
The report pointed out that 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 manoeuvre is designed to provide Nigeria with immediate funds based on future oil production, offering a lifeline to the country’s struggling economy.
