NNPC $3bn AFREXIM Loan Deal Stalls as Lenders Hesitate

The $3 billion crude repayment loan the Nigerian National Petroleum Corporation (NNPC) Limited announced it sealed with the African Export-Import (Afrexim) Bank has reportedly stalled as other lenders that were supposed to be a part of the syndicated transaction are said to have backed out sources tell MoneyCentral.

“Afrexim was supposed to put down only $250 million which was to help bring on board other lenders as they are already heavily exposed to Nigeria and have obligor limits. The NNPC MD Mele Kyari then announced the money was to be used to shore up the naira and other lenders got cold feet,” a source told MoneyCentral.

There is no mention of the deal on Afrexim Bank’s website a search by MoneyCentral showed. Meanwhile the Central Bank of Nigeria (CBN) gross reserves have not seen any accretion, and are down 0.2% to $33.68 billion since the announcement was made on August 16th.

The West African region already accounted for 45% of loans from the Afrexim Bank as at the first quarter of 2023, according to data from its financials.

“Perhaps the NNPC MD was eager to please the new Nigerian President Bola Tinubu with the announcement, however the deal has stalled based on the rushed announcement. Nigeria’s finances are in tatters, oil theft is a major problem, so financiers are understandably not keen,” the source said.