Headline

Nigeria Secures Additional $925m In oil-backed Loan From Afreximbank

Published

1 year ago

June 6, 2024

African Export-Import Bank, on Thursday, announced an additional disbursement of $925m under the syndicated $3.3bn crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company Limited.

Its latest accordion disbursement for Project Gazelle Funding Limited brings the total current funded facility size to $3.175bn.

Arranged and coordinated by Afreximbank, the accordion arrangement saw the raising of a combined total of $925m from a consortium of crude oil off-taker lenders including but not limited to the Oando Group and Sahara Energy Resource Limited.

“Afreximbank acted as Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent and Collateral Agent for the transaction which is expected to provide further support for Nigeria’s macroeconomic stability and long-term economic growth while enhancing the country’s industrialisation and trade development efforts,” the bank stated in a statement posted on its website on Thursday.

This announcement follows the success of the first accordion tranche of the $3.3bn facility. In December 2023, the project received funded commitments totaling $2.25m.

The $925m accordion arrangement raises the total amount disbursed to $3.175bn.

Commenting on the disbursement, President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah, said, “The milestone achieved thus far on this facility demonstrates the bank’s capabilities in performing its role as a crucial development partner for Africa.

“It reaffirms our commitment to assisting our member states in their efforts to achieve economic growth and stability. This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities.”

Oramah described the original facility as ‘a landmark’ for being the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa.

He said the closure of the first accordion demonstrated the existence of positive market appetite for well structured commodities-backed instruments.

The Group Chief Executive Officer, NNPC Limited, Mele Kyari, commended Afreximbank management and team for their investment philosophy and active interest in co-creation of prosperity.

“The successful disbursement of the first accordion under project Gazelle and its interest in funding viable and strategic projects is a clear indication of investors’ confidence in NNPC and Nigeria’s growth aspirations,” Kyari stated.

He further assured Afreximbank and all investing communities of NNPC’s resolve to continue to grow the nation’s hydrocarbon resources and strengthen its partnerships across the oil and gas value chain locally, and globally.

On August 17, 2023, The PUNCH reported that the NNPCL announced that it had secured a $3.3bn emergency crude oil repayment loan from the African Export-Import Bank.

It explained that the loan would be used by the oil company to support the Federal Government in stabilising Nigeria’s exchange rate.

Also in January 2024, The PUNCH reported that NNPC would prepay future royalties and taxes to the Federal Government from the $3.3bn financing deal it got from African Export-Import Bank.

The report stated that NNPCL disclosed this in a document titled, ‘Frequently Asked Questions – Project Gazelle’, released by its Chief Corporate Communications Officer, Olufemi Soneye.

Providing details about the deal in the document titled, “Everything you need to know about the NNPC Limited’s $3.3bn loan, also known as Project Gazelle,” the company said, “This is a financing agreement secured by NNPC Limited to prepay future royalties and taxes to the Federal Government.”

The company also stated that it adopted a lower price benchmark for the $3.3bn crude-for-cash loan to reduce the risk of default and ensure financial stability.

Giving details on the benchmark oil price, the company said the facility was using a conservative crude price of $65/barrel to calculate the allocated crude to be produced and sold in the future.

“This provides a safety margin for price fluctuations 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,” it stated.

NNPC also said repayments were strategically planned and tied to future oil sales, with conservative pricing in oil sales contracts mitigating the risks associated with oil price volatility.

Headline

19 Dead As Bangladesh Fighter Jet Crashes Into School

Published

1 day ago

July 21, 2025

Editor

A Bangladeshi training fighter jet crashed into a school in the capital Dhaka on Monday, killing at least 19 people and injuring dozens more in the country’s deadliest aviation accident in decades.

An AFP photographer at the scene saw fire and rescue officials taking away the injured students on stretchers, while military personnel helped clear the wreckage.

A military statement said 19 people were killed, including the pilot, and 20 others were critically wounded.

At least 51 people, mostly students, were undergoing treatment at Dhaka’s National Burn and Plastic Surgery Institute, its director Mohammad Nasir Uddin told AFP.

The Chinese-made F-7 BJI aircraft crashed moments after students were let out of class at 1:00 pm (0700 GMT) at the Milestone School and College.

A witness said he heard a huge blast that felt like an earthquake.

“We have two playgrounds, one for the senior students and one for the juniors,” said Shafiur Rahman Shafi, 18, who is enrolled at the school.

“We were on the playground for the seniors. There were two fighter planes… Suddenly one of the two planes crashed here (in the junior playground),” he told AFP.

“It created a boom, and it felt like a quake. Then it caught fire, and the army reached the spot later.”

The interim government of Muhammad Yunus announced a day of national mourning on Tuesday.

Grieving parents and relatives of the victims thronged the National Burn and Plastic Surgery Institute.

Tofazzal Hossain, 30, broke down in tears on learning that his young cousin had been killed.

“We frantically searched for my cousin in different hospitals,” Hossain told AFP.

“He was an eighth grader at the school. Finally, we found his body.”

Yunus expressed “deep grief and sorrow” over the incident in a post on X.

“The loss suffered by the Air Force, the students, parents, teachers, and staff of Milestone School and College, as well as others affected by this accident, is irreparable,” he said.

“This is a moment of profound pain for the nation.”

The crash was the worst aviation accident in the country in several decades.

The deadliest ever disaster happened in 1984 when a plane flying from Chattogram to Dhaka crashed, killing all 49 on board.

Last month, a commercial aircraft crashed in neighbouring India, killing 260 people.

Headline

S’African President Sacks Education Minister Accused Of Lying To Parliament

Published

1 day ago

July 21, 2025

Editor

South Africa’s President, Cyril Ramaphosa, on Monday dismissed his embattled higher education minister, weeks after a key party in his unity government filed criminal charges accusing her of lying to parliament.

Ramaphosa has faced mounting pressure in recent months as several ministers from his African National Congress (ANC) party have been accused of corruption, deepening tensions within the 10-party ruling coalition.

The second largest group in government, the Democratic Alliance (DA), earlier this month filed a complaint accusing Minister Nobuhle Nkabane of lying to parliament to cover up the “fraudulent” appointment of ANC-linked figures to education authority boards.

“President Cyril Ramaphosa has removed Dr Nobuhle Nkabane from the role of Minister and (sic) Higher Education and Training,” the presidency announced in a statement Monday night, after Nkabane failed to attend key parliamentary meetings where she was meant to clarify the controversial appointments.

The DA — which joined government after the ANC lost its majority last year due to voter disillusionment with corruption and mismanagement — has said graft had become “standard practice” under Ramaphosa’s rule.

It has also laid corruption charges against Human Settlements Minister Thembi Simelane over allegations of fraudulent billing to the national electricity supplier Eskom.

Ramaphosa also had to suspend his police minister on July 13, after bombshell accusations by a provincial police chief who alleged he had received payments from a corruption suspect and colluded with organised crime.

South Africa ranks 82nd in the world according to the corruption perception index of the NGO Transparency International.

AFP

Headline

Russia Strikes Ukraine After Kyiv Offers Fresh Talks

Published

2 days ago

July 21, 2025

Editor

Russia fired a volley of drones and missiles at Ukraine early on Monday, hitting apartment blocks and a nursery in Kyiv, days after Ukrainian President Volodymyr Zelensky proposed holding a fresh round of peace talks.

Moscow has not responded to Zelensky’s call for new negotiations this week or an ultimatum by US President Donald Trump to make progress on a peace deal or face massive sanctions.

Two people were killed across the country, Zelensky said.

French Foreign Minister Jean-Noel Barrot arrived in the capital, Kyiv, while rescuers were still sifting through the rubble.

Zelensky condemned the strikes as an “assault on humanity” and said at least 15 other people had been wounded in the attacks, including a 12-year-old boy.

Efforts to reach a diplomatic solution to the three-year war have stalled in recent weeks.

The two sides last met for direct negotiations more than a month ago in Istanbul.

They did not make any progress towards a ceasefire, instead agreeing to a series of prisoner exchanges.

Six districts of Kyiv came under attack on Monday, sparking fires at a supermarket, multiple residential buildings and a nursery, authorities said.

An AFP reporter saw damage to multiple buildings, as well as debris and shattered glass on streets.

Russia launched 450 drones and missiles in total, according to Ukraine’s air force.

The strikes also caused damage in the western region of Ivano-Frankivsk and the eastern regions of Kharkiv and Sumy, according to Zelensky.

Meanwhile, travel chaos that began during the weekend continued in Russia, as Kyiv targeted Moscow with drones;

The attacks forced Vnukovo airport — a transport hub for the Russian government — to briefly suspend flights.

•⁠ ⁠Top French diplomat in Kyiv –

An entryway to the Lukyanivka metro station in Kyiv was also damaged by the overnight strikes.

French foreign minister Barrot condemned the attacks during a visit to the station.

“The shelters themselves are no longer entirely safe, as the metro station behind me, which is being used as a shelter for the people of Kyiv, has been targeted,” he said.

“This comes even as President Zelensky’s statement on Saturday morning, that showed Ukraine’s willingness to enter into new negotiations with Russia,” he added.

The European Union agreed on Friday an 18th package of sanctions on Moscow that targeted Russian banks and lowered a price cap on oil exports.

Barrot said the sanctions were aimed at increasing the cost of war for Russia to pressure President Vladimir Putin into negotiations.

The Kremlin said this month it was ready to continue talks with Ukraine after Trump gave Russia 50 days to strike a peace deal or face sanctions.

At talks last month, Russia outlined a list of demands, including calls for Ukraine to cede more territory and to reject all forms of Western military support.

Kyiv dismissed them as unacceptable and at the time questioned the point of further negotiations if Moscow was not willing to make concessions.

AFP