Nigeria to recieve $1bn from Afreximbank in May in oil-for-cash loan deal

The federal government will be receiving $1.05 billion from a syndicated loan backed by oil by the end of May.

The $1.05 billion loan which is part of the $3.3 billion “pre-export finance facility” (PxF) facilitated by the Nigerian National Petroleum Company (NNPC) Ltd and arranged by the African Export-Import Bank (Afreximbank) in January 2024, is expected to help revive the economy and improve the foreign exchange market.

Denys Denya, senior executive vice president for finance, administration and banking at Afreximbank, who disclosed that the $1.05 billion loan is the last batch of money to be released in the deal, noted that the oil-for-cash loan agreement with NNPC is expected to attract the interest of 11.85 percent per annum.

He said; 

“The verification of the crude availability has happened so we expect in the next month to finalize the release of the balance. Based on future production, you get the money now.”