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Nigeria to get $1bn Afreximbank loan next month

Published

8 months ago

April 9, 2024

As part of a larger $3.3bn prepayment facility arranged by the African Import Export Bank, Nigeria is set to receive a $1.05bn syndicated loan backed by oil from Afreximbank next month.

The terms of the loan return depend on how much crude oil is sent from the Nigerian National Petroleum Company Ltd. Bloomberg says that Denys Denya, Senior Executive Vice President for Finance, Administration, and Banking at Afreximbank, confirmed that the supply of crude oil had been checked. This means that the balance will be released in full within the next month.

The goal of the loan is to boost Nigeria’s economy and make more hard cash available on the country’s foreign exchange market. There was already money sent out in January for two-thirds of it.

This financial move is meant to give Nigeria immediate cash based on future oil production, which will help the budget of the struggling country.

The African Export-Import Bank gave the Nigerian National Petroleum Company Limited $3.3bn in loans last year. In January, the company said it would pay future fees and taxes to the Federal Government ahead of time.

This was written by NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, and put out in a paper called “Frequently Asked Questions – Project Gazelle.”

On Monday, Brent, the world standard for crude oil, sold for about $90.63 per barrel. The national oil company said this about the average oil price of $65/barrel for the $3.3bn deal: “This gives us a safety margin in case prices change in the future.”

“NNPC Limited has reserved up to 90,000 barrels of crude for Project Gazelle, ensuring sufficient cash flow for repayment and other financial obligations.

“If oil prices rise, more money will come in from selling the 90,000 barrels, allowing for faster repayment. However, if oil prices fall, the repayment may be slower.

“The quantity of crude earmarked (90,000 barrels) is sized to ensure enough cash is available for the repayment of the facility when it is due. This also ensures that NNPC Limited can meet other cash flow obligations, considering the expected future price of crude oil globally.”

Related Topics:Afreximbank loan Featured Nigeria

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IMF mission concludes 4th loan program assessment in Egypt

Published

13 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.