Nigeria Clears $4.5 Billion Oil-Backed Deal to Lift Reserves

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Or sign-in if you have an account.(Bloomberg) — Nigeria said it approved a $4.5 billion arrangement with the state-owned energy firm that will liberate funds to bolster foreign-exchange reserves and spending on the government’s ongoing infrastructure priorities.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe country will receive the money from a refinanced pre-export crude facility that is secured by 78,750 barrels of daily oil output by the Nigerian National Petroleum Co., the office of Vice President Kashim Shettima said in a statement Tuesday. The National Economic Council approved the deal in a meeting on Monday, it said.Africa’s largest crude producer has increased average output this year to 1.5 million barrels per day and produced 1.56 million barrels per day in June, the highest level since April 2020. The government has set a target of 3 million barrels per day by 2030. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe arrangement will free up resources for strategic priorities and strengthen the country’s financing framework, Finance Minister Taiwo Oyedele told the NEC meeting while seeking approval for the facility. The deal marks Nigeria’s second major external financing arrangement this year, following a $5 billion total return swap agreement with First Abu Dhabi Bank PJSC, the United Arab Emirates’ largest lender, in April. The government has already accessed $1.5 billion through the facility.Of the new facility, $1.5 billion will refinance the outstanding balance of a 2023 NNPC loan, while the state-owned energy company will receive an additional $3 billion in fresh financing. The proceeds are typically used to settle tax and royalty obligations to the government upfront, as well as other outstanding liabilities.Shettima’s office did not disclose the duration of the facility. A similar arrangement in 2023 had a five-year tenor and was secured against 90,000 barrels of crude per day. It was arranged by African Export-Import Bank, with Geneva-based commodities trader Gunvor International BV and Lagos-based Sahara Energy Resources Ltd. participating in the syndicated facility. United Bank for Africa Plc served as the local arranger and onshore account bank.Sign up here for the daily Next Africa newsletter and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen.—With assistance from Ana Monteiro.(Updates with additional details throughout.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.