Would you like to receive notifications on latest updates of the following headlines?

Oando Discloses $550m Contribution to Afreximbank Loan-For-Crude Deal

POSTED ON June 10, 2024 •   Business      BY Abiodun Saheed Omodara
Oando logo l Credit: Oando Plc

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.

READ ALSO
South Africa Surpasses Nigeria in Fuel Imports Amid Dangote Refinery Operations
BY Abiodun Saheed Omodara May 29, 2025 0

Nigeria has lost its long-standing title as Africa’s largest importer of refined petroleum pro...

READ ALSO
Economists Warn of Debt Sustainability Risks as Nigeria Eyes $24.14 Billion in Foreign Loans
BY Abiodun Saheed Omodara May 28, 2025 0

Nigeria's public debt is poised for another substantial increase as President Bola Tinubu has sought...

READ ALSO
Nigeria's Solid Minerals Sector Attracts Over $800 Million in Investments Amid Policy Shift
BY Abiodun Saheed Omodara May 25, 2025 0

The Minister of Solid Minerals Development,Dr Dele Alake announced that Nigeria attracted over $800...

READ ALSO
SNEPCo Urges Indigenous Firms to Enhance Skills for Future Opportunities
BY Abiodun Saheed Omodara May 23, 2025 0

The Shell Nigeria Exploration and Production Company Limited (SNEPCo) has urged Nigerian firms to st...

READ ALSO
JUST IN: Dangote refinery slashes petrol prices by N15 nationwide
BY Abiodun Saheed Omodara May 22, 2025 0

LAGOS, Nigeria — The Dangote Petroleum Refinery recently announced a reduction in the pump pri...

READ ALSO
Sanwo-Olu Advocates for Innovation, Accountability in Economic Policies
BY Abiodun Saheed Omodara May 22, 2025 0

LAGOS, Nigeria - Lagos State Governor Babajide Sanwo-Olu has stated that Nigeria must hasten its pro...

READ ALSO
CBN's Rigid Monetary Policies Threaten Nigeria's Industrialization Efforts
BY Abiodun Saheed Omodara May 22, 2025 0

With the Central Bank of Nigeria (CBN) keeping the benchmark interest rate at 27.5 percent, local ma...

READ ALSO
FG to Auction 753 Housing Units Recovered from Ex-CBN Governor Emefiele
BY Abiodun Saheed Omodara May 20, 2025 0

ABUJA, Nigeria - The Federal Government has declared its intention to sell 753 housing units that we...

OUR CHANNELS:

Enugu Proposes Bill to Curb Criminal Activities Linked to Traditional Practitioners
BY Abiodun Saheed Omodara June 6, 2025 0

ENUGU, Nigeria - Enugu State Governor Peter Mbah has proposed an Executive Bill to the Enugu State H...


Bill Gates Advocates for Improved Health Care in Nigeria Amid Budget Constraints
BY Abiodun Saheed Omodara June 6, 2025 0

US billionaire Bill Gates, who chairs the Gates Foundation, expressed that Nigeria’s health bu...


Controller General Issues Urgent Security Directive for Correctional Facilities
BY Abiodun Saheed Omodara June 6, 2025 0

The Controller General of Corrections, Sylvester Nwakuche, has issued a strict order to all Zonal Co...


NEMA Mobilizes Teams to 15 States Amid Flood Warnings
BY Abiodun Saheed Omodara June 5, 2025 0

The National Emergency Management Agency (NEMA) has sent officials to 15 high-risk states to educate...


Edo Faces Diphtheria Outbreak, Two Confirmed Deaths
BY Abiodun Saheed Omodara June 5, 2025 0

EDO, Nigeria (NAN) - A diphtheria outbreak has been confirmed in Edo State, resulting in two deaths....


Tinubu Honors Bill Gates with National Award for Global Philanthropy
BY Abiodun Saheed Omodara June 5, 2025 0

LAGOS, Nigeria - President Bola Tinubu commended Bill Gates, the co-founder of Microsoft and chairma...


Bahrain, Colombia, DRC, Latvia, and Liberia Join UN Security Council for 2026-2027 Term
BY Abiodun Saheed Omodara June 5, 2025 0

The UN General Assembly on Tuesday elected five new non-permanent members to the UN Security Council...


Tinubu Orders Urgent Repairs on Flood-Damaged Bridge in Mokwa
BY Abiodun Saheed Omodara June 5, 2025 0

NIGER, Nigeria (NAN)- President Bola Tinubu has instructed the Federal Ministry of Works to repair t...


Nigeria Needs ₦2.2 Trillion to Eliminate Cervical Cancer by 2030, Says Task Force Chair
BY Abiodun Saheed Omodara June 5, 2025 0

ABUJA, Nigeria — Nigeria will need ₦2.2 trillion to roll out comprehensive cervical cancer ini...


EFCC Charges Two Men for Posing as Fake Sureties in Illegal Mining Case
BY Abiodun Saheed Omodara June 4, 2025 0

The Economic and Financial Crimes Commission (EFCC) has charged two individuals, Shehu Abdu and Isah...


More Articles

Load more...

Menu