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An indigenous oil company, Oando Plc, has revealed that it played a part in contributing $550m out of the $925m disbursed to the Federal Government by the African Export-Import Bank as part of the $3.3bn crude oil-backed finance facility sponsored by the Nigerian National Petroleum Company Limited.
The company disclosed it made the contribution through its subsidiary, Oando Trading, as stated in a corporate notice filed with the Nigerian Exchange Limited last Friday.
The $3.3bn oil-for-cash loan by NNPCL was initially announced in August 2023, with the aim of supporting the naira and stabilizing the foreign exchange market.
Oando, in a statement signed by its Chief Compliance Officer/Company Secretary, Ms Ayotola Jagun, confirmed its involvement in the $925m accordion arranged and coordinated by African Export-Import Bank for Project Gazelle.
The company highlighted that in addition to its $550m contribution, the remaining $375m was raised by other parties.
The Group Chief Executive Officer of Oando Plc, Wale Tinubu, expressed, "The successful completion of this facility is another achievement for the company and the nation as a whole.
"This transaction further demonstrates Oando's ability to generate value and solidifies the company's position as the preferred indigenous partner in Nigeria.
"As a proudly indigenous company, our goal has always been to leverage our platform to support the sustainable development of the nation.
“Against this backdrop, Project Gazelle will be instrumental in realizing the Federal Government’s efforts to boost the country’s socio-economic indices.
"Afreximbank as the lead arranger continues to support African corporations – public and private growing confidence in the market and continent.”
The continental bank, which served as the Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent for the transaction, stated that it is anticipated to offer further assistance for Nigeria’s macroeconomic stability and long-term economic growth, while also bolstering the country’s industrialization and trade development endeavours.
This announcement comes after the successful completion of the initial accordion tranche of the $3.3 billion facility. By December 2023, the project had received funded commitments totaling $2.25 million.
The $925 million accordion arrangement increases the total amount disbursed to $3.175 billion.
In response to the disbursement, Prof. Benedict Oramah, the President and Chairman of the Board of Directors of Afreximbank, remarked, "The progress achieved thus far on this facility underscores the bank's capacity as a vital development partner for Africa."
He said it reaffirmed their dedication to support member states in their pursuit of economic growth and stability.
"This funding will significantly contribute to Nigeria's short and long-term economic development priorities," he added.
