Nigeria has successfully received $2.25 billion out of the long-anticipated $3.3 billion foreign exchange support facility from Afreximbank on Friday. The infusion of funds aims to address the acute foreign exchange shortage that has been constraining the Nigerian economy. ARISE News has verified that an additional $1.05 billion is set to be received in the first week of January.
Business leaders in Lagos have commended the effort of Afreximbank, recognizing the substantial impact these funds could have as a key catalyst for the economy. The injection of funds is expected to mitigate exchange rate volatility and contribute to easing inflationary pressures.
In an interview with ARISE News, the Minister of Finance, Wale Edun, acknowledged Afreximbank’s role in the disbursement of funds and emphasized that comprehensive solutions are being explored to address Nigeria’s economic challenges. These solutions include leveraging technology to enhance tax collection and improving the foreign exchange position.
Edun stated that efforts are underway to implement a range of support mechanisms, optimistic that Nigeria is moving in the right direction towards overall improvement in government finances and foreign exchange liquidity.
While Afreximbank serves as the lead arranger for the $3.3 billion loan, other sub-lenders include Sahara Energy Group, UBA, and Guvnor, one of the world’s largest energy trading houses by turnover.
This recent development follows the announcement in August, where the Nigerian National Petroleum Company Limited (NNPC) secured a $3 billion emergency loan from Afreximbank to stabilize the country’s volatile foreign exchange market. The infusion of funds is anticipated to enhance foreign exchange liquidity and support the value of the naira against the dollar.