AGS NEWS – Nigeria is on track to secure a $1.05 billion syndicated loan backed by oil from the African Import Export Bank in the coming month.

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

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

The loan aims to rejuvenate Nigeria’s economy and boost the supply of hard currency in the local foreign exchange market.

Two-thirds of the loan was disbursed in January, offering immediate financial assistance to the country.

The Nigerian National Petroleum Company Limited had previously announced its intention to prepay future royalties and taxes to the Federal Government from the $3.3 billion financing deal it secured from African Export-Import Bank last year.

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This move was intended to support the Federal Government in stabilizing Nigeria’s exchange rate and ensuring financial stability.

The repayment of the loan is strategically planned and tied to future oil sales, with conservative pricing in oil sales contracts mitigating the risks associated with oil price volatility.