The country’s external reserves rose by $387.18 million between May 31, 2024 and June 10 2024 latest data obtained from the Central Bank of Nigeria (CBN) shows.
An analysis of the apex bank’s figures on movement on external reserves indicates that the reserves, which stood at $32.69 billion on May 31 2024, rose steadily to hit $33.08 billion on June 10, 2024.
Analysts believe that the accretion to the reserves in recent days may not be unconnected with the announcement by the African Export-Import Bank (Afreximbank) last Thursday, that it had disbursed $925 million to Nigeria as additional funds under the syndicated $3.3 billion crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company (NNPC) Limited.
This meant that Afreximbank since August last year had disbursed a total of $3.175 billion to the NNPC under the $3.3 billion facility which is aimed at helping the Federal Government’s efforts in stabilising the naira.
According to Afreximbank the latest tranche of the funds was raised from a consortium of crude oil off-taker lenders including but not limited to Oando Group and Sahara Energy Resource Limited.
Commenting on the disbursement, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, 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.”
Prof. 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, adding that the closure of the first accordion demonstrated the existence of positive market appetite for well structured commodities-backed instruments.
Mele Kyari, Group CEO, NNPC Limited commended Afreximbank Management and team for their investment philosophy and active interest in co-creation of prosperity.