By Milcah Tanimu
The Federal Government of Nigeria has received an additional $945 million from the African Export-Import Bank (Afreximbank) as part of a $3.3 billion crude oil-backed prepayment facility. This latest disbursement brings the total facility size to $3.175 billion.
Arranged and coordinated by Afreximbank, this facility is designed to provide substantial support for Nigeria’s macroeconomic stability and long-term economic growth. The funding also aims to boost the country’s industrialization and trade development efforts. The $925 million was raised from a consortium of crude oil off-taker lenders, including the Oando Group and Sahara Energy Resource Limited.
Afreximbank played multiple roles in the transaction, acting as the Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent. This significant financial arrangement follows the first tranche of the $3.3 billion facility.
In December 2023, the project initially secured commitments totaling $2.25 billion. The recent $925 million disbursement has now increased the total amount to $3.175 billion.
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, highlighted the bank’s commitment to supporting African countries in achieving economic growth and stability. He remarked, “The milestone achieved thus far demonstrates the Bank’s capabilities as a crucial development partner for Africa. This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities.”
Oramah also described the original facility as a landmark, being the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa. The successful closure of the first accordion underscores the market’s positive appetite for well-structured commodities-backed instruments.
Mele Kyari, Group Chief Executive Officer of NNPC Limited, praised Afreximbank’s management and team for their investment philosophy and commitment to fostering prosperity. “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 NNPCL and Nigeria’s growth aspirations,” Kyari stated.
Kyari assured Afreximbank and the investing community of NNPCL’s continued efforts to grow the nation’s hydrocarbon resources and strengthen partnerships across the oil and gas value chain both locally and globally.