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

Published

3 weeks ago

June 6, 2024

Editor

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

Nigeria Missing In Top 10 Most Stressful Countries In Africa

Published

6 hours ago

June 28, 2024

Editor

A report has revealed the top 10 most stressful countries in Africa in 2024 with Nigeria ranked 33rd on the continent.

In Africa, stress levels are notably high due to a combination of economic challenges, political instability, and social issues.

In a report by CEOWORLD magazine, it shared the most stressed countries globally, with several African nations ranking high on the list.

The report, which compared 211 countries and territories across four categories—work-related stress, money-related stress, family-related stress, and health- and safety-related stress—provides insights into the global mental health landscape, highlighting which countries are performing well and which need improvement.

The most stressful country in Africa, according to the report, is South Sudan, with a stress score of 45.68. Burundi follows closely with a score of 45.8, and the Central African Republic ranks next with a score of 46.07.

In 2023, the main sources of stress globally included money, the economy, and health issues, as highlighted in the CEOWORLD report.

The analysis helps identify areas where mental health support is most needed and which countries are effectively managing stress among their populations.

Here is a list of the top 10 most stressful countries in Africa:

Top 10 most stressful countries in Africa
1. South Sudan – 45.68
2 Burundi – 45.8
3 Central African Republic – 46.07
4 DR Congo – 46.24
5 Niger – 46.7
6 Mozambique – 47.23
7 Eritrea – 47.32
8 Malawi – 47.52
9 Liberia – 47.94
10 Chad – 48.05

Headline

‘We Have A Problem’: Democrats In ‘Aggressive Panic’ Over Biden’s Debate Performance

Published

6 hours ago

June 28, 2024

Editor

President Joe Biden was supposed to put the nation’s mind at ease over his physical and mental capacity with his debate showing Thursday night. But from the onset of the debate, the 81-year-old struggled seemingly even to talk, mostly summoning a weak, raspy voice.

In the opening minutes, the president repeatedly tripped over his words, misspoke and lost his train of thought.

In one of the most notable moments, Biden ended a rambling statement that lacked focus by saying, “We finally beat Medicare,” before moderators cut him off and transitioned back to Trump

While Biden warmed up and gained more of a rhythm as the debate progressed, he struggled to land a punch against Trump.

According to NBC news, Trump, unleashing a torrent of bad information — didn’t hesitate to pounce on Biden, saying at one point that he didn’t understand what Biden had just said with regard to the border.

“I don’t know if he knows what he said either,” Trump said.

Nearly an hour into the debate, a Biden aide and others familiar with his situation offered up an explanation for the president’s hoarseness: He has a cold.

Even the Biden campaign acknowledged that the debate would be a critical moment in the election, with officials hoping it could shake up the race to the president’s benefit. Most polls have found the race to be neck and neck, a razor-thin margin that has remained unchanged for months, even after a jury found Trump guilty on 34 felony counts.

Questions about Biden’s age and frailty have dragged down his polling numbers for months. The public concerns are exacerbated by deceptively edited videos, some of which have gone viral, that cut off relevant portions of an event, making it appear as if Biden is wandering or confused. This was Biden’s first opportunity — since the State of the Union speech — to dispel that narrative.

Instead of a new beginning, many Democrats saw it as a moment for panic.

“Democrats just committed collective suicide,” said one party strategist who has worked on presidential campaigns. “Biden sounds hoarse, looks tired and is babbling. He is reaffirming everything voters already perceived. President Biden can’t win. This debate is a nail in the political coffin.“

“It’s hard to argue that we shouldn’t nominate someone else,” a Democratic consultant who works on down-ballot races added.

Biden did ramp up as the debate progressed.

“Only one of us is a convicted felon, and I’m looking at him,” Biden said to Trump. That was one moment that tested really well with internal simultaneous Biden campaign polling at the time of the debate, according to a person familiar.

A Biden aide said that it was “not an ideal start” for the president at the beginning of the debate, but that there was “no mass panic” at the campaign headquarters in Delaware.

Trump, meanwhile, has fended off his own questions over whether he’s diminished by age, including that he struggles to stay on topic and meanders when speaking. Biden has posited that the former president “snapped” after his 2020 election loss and is unstable. Biden, though, had prepped for the possibility of “two Trumps” appearing on the debate stage Thursday, and had planned to try to bait him into revealing “the true Trump.”

The muting of the microphones, a stipulation agreed to before the debate by both campaigns, added a new dimension to the face-off. The two men’s first match-up in 2020 was marked by repeated interruptions by Trump, leading to moments of frustration for Biden.

“Will you shut up, man?” Biden complained in that first Cleveland debate.

“I’m thinking the Democrats are thinking about who the Barry Goldwater is who can walk in tomorrow and tell the president he needs to step aside,” Ben Proto, chairman of the Connecticut Republican Party, said.

In 1974, after key Watergate tapes were made public, then-Sen. Barry Goldwater, R-Ariz., went to see President Richard Nixon along with other prominent lawmakers and told him that he would be convicted by the Senate and should step aside— which Nixon did

Headline

JUST IN: Tinubu Makes Eight New Appointments

Published

7 hours ago

June 28, 2024

Editor

President Bola Tinubu has approved the appointment of eight new Federal Permanent Secretaries to fill existing and impending vacancies of some states and geo-political zones in the Civil Service.

Chief Ajuri Ngelale, Special Adviser to the President, Media and Publicity, said in a statement on Friday that the new Permanent Secretaries were appointed after a diligent selection process by the Office of the Head of the Civil Service of the Federation.

The are: Dr Emanso Umobong Okop – Akwa-Ibom, Mr Obi Emeka Vitalis – Anambra, Mahmood Fatima Sugra Tabi’a – Bauchi, Danjuma Mohammed Sanusi – Jigawa, Olusanya Olubunmi – Ondo, Dr Keshinro Maryam Ismaila – Zamfara, Akujobi Chinyere Ijeoma (South-East) and Isokpunwu Christopher Osaruwanmwen (South-South).

“The President anticipates that the new Federal Permanent Secretaries will exercise absolute dedication, diligence and fidelity to the nation in the discharge of their functions and ensure optimum service delivery to the Nigerian people,” said the statement.

(NAN)