By Tony Obiechina, Abuja
African Export-Import Bank has agreed to raise the sum of $5 billion as corporate finance to fund major investments in Nigeria’s Upstream sector.
This was contained in a statement signed by the President and Chairman of the Board of Directors of the bank, Prof Benedict Oramah on Wednesday.
The development, a dividend of the Petroleum Industry Act and the incorporation of the Nigerian National Petroleum Company as a limited liability company, is a fallout of the meeting between the chairman of the Board of Directors and President of the African Export-Import Bank( Afriximbank) and the NNPC Ltd team led by the Group Managing Director/Chief Executive Officer , Malam Mele Kyari, in Cairo, Egypt on Wednesday.
The meeting agreed to intensify efforts at deepening investment in Nigeria’s oil sector.
The NNPC and the Afreximbank agreed to, among other things, deepen the business collaboration between the two institutions.
The bank agreed to enter into a finance advisory and fundraising role to raise $5 billion towards the “acquire, invest and operate energy producing assets in Nigeria as part of NNPC’s growth strategy following its incorporation as a limited liability company.”
As part of the landmark transaction, Afreximbank will also underwrite US$1 billion as part of forward sales base trade finance transaction.
The NNPC and Afreximbank also explored the innovative idea of establishing a pan-African Energy Transition Bank and agreed to collaborate towards achieving the objective.
On the trip from the NNPC Ltd team is the Chief Executive Officer, Malam Mele Kyari, the Chief Financial Officer, Umar Ajiya, the Group Executive Director , Upstream, Engr. AdokiyeTombomieye, the GGM, NAPIMS, Mr. Bala Wunti, the Managing Director, NNPCTrading, Mr Lawal Sade, and others.
