NNPC, Afreximbank sign $1.04bn deal to help increase crude oil production in Nigeria
NNPC, Afreximbank sign $1.04bn deal to help increase crude oil production in Nigeria. African Export-Import Bank (Afreximbank) has signed a $1.04 billion facility with the Nigerian National Petroleum Corporation (NNPC) to help increase crude oil production in Nigeria.
The transaction comprises a pre-export/shipment finance facility underpinned by a Forward Sale Agreement (FSA) and Offtake Contracts from the Nigerian National Petroleum Corporation acting as the Borrower and Seller.
The proceeds of the facility will boost tax revenues and foreign currency receipts and create thousands of jobs in the oil and gas refining value chain, all by more than $2.4 billion to the immediate benefit of the government thereby improving the balance of trade and Gross Domestic Product in Nigeria – Africa’s largest economy.
Afreximbank President and Chairman of the Board of Directors Prof. Benedict Oramah explained the Bank’s decision in the context of the world’s climate change agenda, saying this is a case of adopting a balanced approach.