AfreximBank has reportedly been in discussions with oil traders to secure a crucial $3 billion loan, as pledged to the Nigerian National Petroleum Company Limited (NNPCL).
This initiative aims to bolster the state oil company and stabilize the Nigerian naira.
According to sources cited in a September 27 Reuters report, AfreximBank has been actively engaging various oil traders to gauge their interest in providing the necessary funding through an oil-backed loan for NNPCL.
The institution is said to be diligently formulating the precise terms that will be presented to potential trading entities.
One oil industry executive, intimately involved in the ongoing negotiations, disclosed that there is significant interest among traders, provided the finalized terms meet their expectations.
Moreover, a boost in oil prices, surpassing the $90 per barrel threshold, could further enhance enthusiasm for participation in this financial arrangement.
In this prospective arrangement, traders willing to invest would receive compensation in the form of physical oil cargoes.
AfreximBank is actively strategizing to determine the quantity of oil to be allocated to these traders in exchange for their financial support, as revealed by one of the sources who spoke to Reuters.