In a significant financial development, the African Export-Import Bank (Afreximbank) has disbursed an additional $925 million to the Nigerian government under the $3.3 billion crude oil-backed prepayment facility. This facility, sponsored by the Nigerian National Petroleum Company (NNPC) Limited, aims to bolster Nigeria’s economic stability and growth.
The recent disbursement brings the total amount funded to $3.175 billion, providing critical support for Project Gazelle. Afreximbank announced this milestone on Thursday, highlighting the successful arrangement of funds from a consortium of crude oil off-taker lenders, including the Oando Group and Sahara Energy Resource Limited.
Afreximbank’s extensive role in the transaction included acting as the Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent. This comprehensive involvement underscores the bank’s commitment to aiding Africa’s economic development through strategic financial partnerships.
In December 2023, the first tranche of the $3.3 billion facility saw commitments totaling $2.25 billion. The latest $925 million disbursement not only boosts the total amount disbursed but also demonstrates investor confidence in Nigeria’s economic potential and the structured commodities-backed instruments.
Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, praised the achievement, noting the bank’s role as a pivotal development partner for Africa. “This funding will greatly support Nigeria’s short and long-term economic development priorities,” Oramah stated.
NNPC Limited’s Group Chief Executive Officer, Mele Kyari, expressed gratitude towards Afreximbank for their investment and support. “The successful disbursement of the first accordion under Project Gazelle is a clear indication of investors’ confidence in NNPCL and Nigeria’s growth aspirations,” Kyari said, emphasizing NNPCL’s commitment to enhancing Nigeria’s hydrocarbon resources and fostering partnerships in the oil and gas sector.
Wale Tinubu, Group Chief Executive of Oando PLC, echoed this sentiment, highlighting the transaction’s significance for both the company and the country. “The successful completion of this facility signifies another win for the company and the country at large. Project Gazelle will be instrumental in realizing the Federal Government’s efforts to boost the country’s socioeconomic indices,” Tinubu remarked.
The funding from Afreximbank is poised to play a crucial role in Nigeria’s macroeconomic stability, industrialization, and trade development efforts, marking a notable step forward in the country’s economic journey.
