By Faridat Salifu
Afreximbank and the United Bank for Africa (UBA) have revealed a historic disbursement of $2.25 billion, marking the initiation of a syndicated $3.3 billion crude oil prepayment facility sponsored by the Nigerian National Petroleum Company Limited (NNPCL).
An additional tranche of $1.05 billion is anticipated in the near future.
This landmark agreement represents Nigeria’s most extensive crude oil prepayment facility and stands as one of Africa’s largest syndicated loans raised in 2023. The 5-year facility carries a margin of 6.0% annually above the 3-month secured overnight financing rate (SOFR).
Key participants in the initial stage include Afreximbank, Gunvor International BV, and Sahara Energy Resources Limited, with UBA playing the crucial role of Local Arranger and Onshore Account Bank for the transaction.
Afreximbank’s President, Prof. Benedict Oramah, underscored the institution’s commitment to supporting African economies.
He stated that the $2.25 billion disbursement would fortify Nigeria’s economic stability, improve access to import financing, and stimulate industrialization and trade development.
Mele Kolo Kyari, NNPCL Group CEO, affirmed that the facility’s proceeds strategically aim to enhance macro-economic stability, aligning with broader efforts to elevate Nigeria’s economic landscape.
The record disbursement is expected to have a profound impact on Nigeria’s economic outlook, potentially influencing foreign exchange liquidity and contributing to the stabilization of the Nigerian currency market.
This significant financial infusion reflects a concerted effort to bolster the nation’s economic resilience and foster sustained growth in the oil sector.