Afreximbank President lauds $1.04bn facility agreement with NNPC

The President and Chairman of the Board of Directors of Africa Export -Import Bank (Afreximbank) Prof. Benedict Oramah has lauded the US$1.04 billion facility agreement the bank signed with the Nigerian National Petroleum Corporation (NNPC) for exploration of petroleum financing.

He said it was in the context of the world’s climate change agenda, adding that it is a case of adopting a balanced approach.

Prof. Oramah said that Africa is more of a victim than a perpetrator in the emission of destructive greenhouse gases, contributing only a meagre four per cent, while a majority of the continent, ironically haven been left behind development wise, still has to depend on fossil fuel for survival, and should thus not bear the brunt of the punishment for the mistakes of others.

See also  LASG reiterates commitment to food security, farmers’ productivity

“Stopping development for parts of Africa today to achieve a clean environment for the whole world tomorrow is utterly foolhardy”, quipped Prof. Oramah.

Afreximbank signed a US$1.04 billion facility with the NNPC to finance the exploration of petroleum.

The agreement was concluded last week in Durban during the second intra-Africa trade fair, which opened on November 15 and ran until November 21.

The transaction comprises a pre-export/shipment finance facility underpinned by a Forward Sale Agreement (FSA) and off take contracts from the Nigerian National Petroleum Corporation acting as the borrower and seller.

NNPC will enter an FSA within which it shall deliver 35,000 barrels of crude oil per day. 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 US$2.4bn to the immediate benefit of the government thereby improving the balance of trade and Gross Domestic Product in Nigeria, Africa’s largest economy.

See also  Nigeria subsidising PMS with 2% of GDP in 2021, says World Bank

Signed by Mr. Umor Ajia, NNPC Executive Director and Group Chief Executive Officer on behalf of NNPC, the transaction complies with Afreximank’s mandate to promote local content in Africa’s oil and gas and other mining industry and generate foreign receivables into Africa.

Leave a Reply

Your email address will not be published. Required fields are marked *