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FG Receives $2.25bn From Afreximbank’s $3.3bn Loan

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The federal government on friday, obtained $2.25 billion from the African Export–Import Bank (Afreximbank) as part of a $3.3 billion foreign exchange (FX) facility.

The awaited financial support aims to alleviate the severe shortage of foreign exchange in the country, a situation that has hindered economic activities and dampened investor confidence.

President Bola Tinubu had previously reassured Nigerians in December of his administration’s dedication to addressing FX backlogs by injecting funds into the market.

During the 2023 Bank Directors’ Summit in Abuja, Tinubu emphasized the significance of funding liquidity in the FX market, acknowledging it as a crucial but short-term measure essential for the current state of the economy.

However, there were apprehensions among investors and stakeholders regarding the government’s seeming deviation from its initial pledge to inject between $7 billion to $10 billion into the FX market.

This deviation raised concerns as the existing backlogs continued to affect investor confidence in the economy.

Tinubu, represented by Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, reaffirmed at the summit that there was no shift from the earlier indications given, emphasizing that the process simply required time.

He highlighted the government’s efforts to attract funds aimed at bolstering liquidity in the FX segment.

Yesterday reception of the first part of the funding intervention provided substantial relief to both the federal government and investors, marking a positive development.

The first portion of the funds, as reported, was deposited into the federal government’s account, with the remaining $1.05 billion scheduled for payment next week.

Addressing ARISE News, the minister highlighted that Afreximbank would announce the disbursement timing when appropriate.

He mentioned exploring various support mechanisms aimed at enhancing both government finances and FX liquidity, expressing optimism about Nigeria’s progress in the right direction.

Afreximbank leads the $3.3 billion loan arrangement, with additional participation from sub-lenders such as VITOL, Guvnor, Sahara Energy Group, Oando, and United Bank for Africa, contributing $100 million.

In a previous announcement in August, the Nigerian National Petroleum Company Limited (NNPC) disclosed securing a $3 billion emergency loan from Afreximbank to stabilize the country’s volatile foreign exchange market.

This recent agreement follows NNPC’s earlier attainment of a $5 billion corporate finance commitment from Afreximbank, aimed at funding significant investments in Nigeria’s upstream sector, over a year ago.

While NNPC’s statement lacked details regarding the FX installment volumes and the quantity of crude oil for repayment, the agreement aimed to enhance foreign exchange liquidity and strengthen the naira against the dollar.

Analysts and business leaders lauded Afreximbank’s initiative to address the country’s FX liquidity challenges, acknowledging the potential of these funds to mitigate exchange rate fluctuations and alleviate increasing inflationary pressures.

 

1 Comment

1 Comment

  1. Kendra Rivera

    December 30, 2023 at 7:24 pm

    Its like you read my mind! You appear to know so much about this, like you wrote the book in it or something. I think that you can do with a few pics to drive the message home a little bit, but instead of that, this is excellent blog. A fantastic read. I’ll certainly be back.

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NEWS

Christmas: Shettima Assures Of FG’s Commitment To Citizens’ Welfare

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Nigeria’s Vice President, Kashim Shettima has assured Nigerians of the federal government’s dedication to national security, economic transformation, and welfare of the citizens.

This was detailed in a Christmas message on Wednesday afternoon in Abuja under the signature of the Senior Special Assistant to The President on Media & Communications (Office of The Vice President), Stanley Nkwocha.

According to the Vice President, the administration of President Bola Ahmed Tinubu remains unwavering in its focus on these critical areas, as the country looks forward to the dawn of a new year.

ALSO READ: Tinubu Sends Hearty Christmas Greetings To Christians Worldwide

He said, “In these times of economic transformation, I want to assure you that the President Bola Ahmed Tinubu administration remains steadfast in its commitment to improving the lives of all Nigerians.”

Vice President Shettima particularly urged the citizens to imbibe the virtues of national unity during the yuletide season.

“Nigeria’s diversity remains our greatest strength. Let us avail ourselves of the time provided by the holiday season to strengthen the bonds of brotherhood that unite us across all faiths and regions,” he said.

Senator Shettima assured Nigerians of the continued vigilance of the nation’s security forces, noting that “our brave security personnel will continue to work round the clock during this festive period to keep us safe.”

He said enhanced security measures have been put in place to protect the citizens during the holiday period.

“The relevant agencies have been mobilized to ensure your safety and comfort on all major routes,” he stated, urging travelers to remain vigilant.

VP Shettima expressed optimism about the nation’s trajectory in the coming year, saying, “I am filled with hope and optimism about Nigeria’s future. Together, we will build a more prosperous and united nation.

“To our young people, you are the backbone of our nation. The Renewed Hope administration is implementing various initiatives to create opportunities for you to thrive and contribute to Nigeria’s development,” he added.

 

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Yuletide: Adeleke Rejoices With Christians

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Ademola Adeleke Becomes Sixth Executive Governor of Osun State

 

Osun State Governor, Senator Ademola Adeleke has felicitated Christians in Osun State and beyond on the occasion of the 2024 Christmas celebration, urging them to follow Jesus Christ’s example of compassion and tolerance.

Biztellers reports that Gov Adeleke described the birth of Jesus Christ as a defining moment for mankind, in a statement in Osogbo on Tuesday.

He described the festive season as a solemn reminder of the power of love and how it can save humanity.

ALSO READ: Archbishop Martins Champions Clamour For Better Life For Nigerians

While recognising unity and togetherness as an important message that Jesus Christ’s life resonates, Gov Adeleke charged Osun people, particularly Christians, to draw from the spiritual import of the celebration by sharing love and fostering harmony in communities.

In his words, “I extend my warm wishes to Christian faithful in Osun state and beyond as we mark this year’s Christmas. The birth of Jesus Christ is a manifestation of the power of love and remind us of the essence of compassion,” the Governor noted in his message.

“In the mood of celebration, I urge us to take a moment to reflect on the message of renewal that the birth of Jesus Christ signifies, promoting activities that will unite not divide, build not destroy, and bring peace not conflict.

“It is also my sincere appeal that we extend hands of kindness to the needy and the weak in the society, spreading love and generosity beyond borders. That is the essence of Christmas and it is most essential that at a time like this, no one is left to their fate.”

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Archbishop Martins Champions Clamour For Better Life For Nigerians

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Archbishop Alfred Adewale Martins, of the Catholic Archdiocese of Lagos, has enjoined all Nigerian leaders to be more sensitive to the yearnings of the people for a better life.

This was contained in a 2024 Christmas Message to Nigerians issued in Lagos under the signature of the Director of Social Communications, Very Rev. Fr. Anthony Godonu.

According to the Archbishop there is an urgent need for a better enabling environment to allow businesses thrive in a bid to reduce the high rate of unemployment and the grinding poverty in the land.

He urged leaders to prioritise the welfare of citizens over personal needs in addressing the widespread hunger, poverty, joblessness, and insecurity ravaging the nation.

ALSO READ: Tinubu Sends Hearty Christmas Greetings To Christians Worldwide

In his words, “Even in the face of policies that are deemed to have positive results in the long-term, such as the removal of fuel subsidies, floating of the naira and the new tax reforms initiative, governments must ensure that the immediate welfare of people is not neglected but factored into the planning and execution of such policies. This is necessary, if the people for whom the policies are being made are not to die before the positive results begin to manifest.

“At the same time, government spending must be prudent and compassionate. In addition, it is necessary to pay more attention to the agricultural sector so that food security can be ensured for overall benefit.”

The Prelate described as very sad and depressing the recent loss of several lives of innocent Nigerians in Ibadan, Abuja, and Anambra in their quest to access food palliatives owing to pervading hunger across the country.

He considered it worrisome that many Nigerians now find it difficult to purchase necessities of life, especially during this festive season that should be a period of merriment, sharing of love, food, and other essentials, which are the hallmarks of the Christmas season.

To forestall a reoccurrence of such ugly incidents, the prelate urged governments, at both federal and state levels, as well as the legislative assemblies, to identify and quickly fix the loopholes in the polity that are responsible for the massive poverty and hardship which Nigerians are facing.

He advocated the appraisal of the nation’s existing laws and enactment and enforcement of only proactive policies that would open the business environment, attract investors, and create more jobs so that the citizens can afford their basic needs; rather than depend on palliatives that offer only temporary relief.

The prelate urged substantial investments in the agricultural sector of the economy to ensure the availability of basic foodstuffs; thereby reducing the high cost of essential food items like rice, beans, onions and grains.

“If citizens have food in their homes, people will not endanger their lives while scrambling for palliatives in the way it happened,” he noted with sadness.

While praying for the souls of those who died in the recent stampedes in parts of the country, he also commiserated with those who lost their loved ones, praying that Jesus, the Prince of Peace would bring solace to the afflicted, comfort to the grieving, and hope to the despairing.

“This special season reminds us of the profound love of God, who sent His only Son to redeem humanity. May the light of Christ illuminate our lives, dispel darkness, and fill our hearts with love, compassion, and kindness. As we gather with family and friends, let us not forget those who are less fortunate, the vulnerable and the marginalised. May our celebration be a catalyst for acts of charity, generosity, and solidarity,” he stated.

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