Headline

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

Published

3 weeks 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

Executing Four National Budgets Concurrently A Recipe For Disaster – Peter Obi Chides Tinubu

Published

17 hours ago

June 29, 2024

Editor

The Labour Party presidential candidate in the 2023 elections, Peter Obi, has faulted what he described as a concurrent implementation of four national budgets by the Nigerian government, saying that it is a recipe for chaos, confusion, and catastrophe.

In a post on his X handle on Saturday, Obi said it is a blatant disregard for fiscal responsibility, transparency, and accountability.

The former Anambra State Governor also stated that the government’s action will lead to frivolous items in the approved budgets competing with essential projects for limited resources, further exacerbating the suffering of the Nigerian people.

He wrote: “All available evidence has confirmed that the Nigerian government is implementing four national budgets concurrently. This is in blatant disregard for fiscal responsibility, transparency, and accountability.

“It is also a recipe for chaos, confusion, and catastrophe.

“This intentionally reckless action will lead to frivolous items in the approved budgets competing with essential projects for limited resources, further exacerbating the suffering of the Nigerian people.

“It indicates that the Leaders are out of touch with reality and lack the competence to manage our nation’s finances effectively.

“Unfortunately, this deliberate act of fiscal recklessness is being undertaken by elected representatives of the people, thereby betraying one of the cardinal pillars of democracy. Leaders are elected to responsibly manage public resources in an organized way.

“I respectfully appeal and in fact, demand that this situation be reversed immediately in preference for a more responsible and transparent approach to budgeting.

“We must prioritize the needs of the Nigerian people, not the selfish interests of a few.

“This is a call to action for all Leaders to desist from actions that will further drive the country into economic chaos.

“Neither the National Assembly nor the executive has any excuse to promote or condone such unconscionable behaviour.

“We seek and insist on a nation governed by leaders who are frugal and responsible in their handling of public resources.

“This is the only way we can build a great nation.”

Headline

Police Arrest Female Prison Officer Filmed Having Sex With Inmate In UK Cell

Published

20 hours ago

June 29, 2024

Editor

Police have arrested a woman after footage emerged of a female prison officer having sex with an inmate in an HMP Wandsworth jail cell.

The suspect was taken into custody yesterday on suspicion of misconduct in public office.

The video shows a prison officer engaging in sexual acts with an unidentified prisoner at the Category A jail in south-west London. The woman is seen wearing her uniform during the explicit encounter.

The footage, believed to be recent, depicts the officer first performing a sex act on the prisoner before having intercourse with him.

The incident was reportedly filmed by the inmate’s cellmate using a mobile phone. The cell’s interior is visible in the video, showing a TV and piles of clothes on a bunk bed.

Ian Acheson, a former prison governor, commented on the security implications of the incident: “If this footage is authentic, and I’ve been assured it is, the problems confronting a likely new Labour administration go far beyond overcrowding.”

The case has raised serious concerns about security protocols and staff conduct within the prison system.

Headline

‘Too Stressful’; No Intension Of Going Back To Presidential Villa – Patience Jonathan

Published

20 hours ago

June 29, 2024

Editor

Former First Lady Patience Jonathan has said that she has no intention of returning to the Presidential Villa.

She said the stress associated with the office was too much.

Mrs. Jonathan stated this in an event on Friday.

Jonathan in a video seen by The Nation said if anybody calls her to return to the Villa, she would refuse the offer as she is now old.

She added that if God brings one out of the stress, one should be grateful to God.

“If you call me now for villa, I won’t go there. I won’t. Don’t you see how young I am? The stress is so much.

“The stress of Nigeria is so much. If God manages to bring you out of it, you should glorify God and thank him. It is the Lord’s doing and it is marvelous in our eyes.

“He has taken you there once, why do you want to go there again? Me I won’t go oo,” she stated.