Emmanuel Ochayi
In a move to alleviate Nigeria’s acute foreign exchange (FX) shortage, the African Export-Import Bank (Afreximbank) has disbursed an initial $2.25 billion from the recently approved $3.3 billion crude oil prepayment facility.
President Bola Tinubu’s assurance in December about addressing FX backlogs through fund injection gains traction with this development.
Afreximbank’s President, Prof. Benedict Oramah, emphasized the institution’s unwavering commitment to supporting African economies in crucial times.
He stated, “This facility further demonstrates the bank’s commitment to supporting African economies when such assistance is most needed. Afreximbank stands by its member countries in good and difficult times.”
The disbursement aims to foster Nigeria’s long-term economic stability, facilitate access to import financing for essential goods, and bolster industrialization and trade development efforts.
The announcement, posted on Afreximbank’s website, highlighted the expeditious commitment of funds by partners and investors despite year-end pressures. Prof. Oramah expressed gratitude, stating, “We are pleased that despite the typical year-end pressures, our partners and investors committed the funds required in record time. We thank them for their support.”
This financial injection comes as a relief, as Nigeria grapples with economic constraints and dwindling investor confidence due to the prolonged FX shortage.
The second tranche, amounting to $1.05 billion, is anticipated to follow soon, further fortifying Nigeria’s economic resilience.
In direct speech, President Tinubu reiterated his administration’s dedication, saying, “Our commitment to resolving the FX backlogs is unwavering. This injection of funds is a crucial step toward restoring confidence, stimulating economic activities, and positioning Nigeria for sustainable growth.”
The disbursement from Afreximbank underscores collaborative efforts to address economic challenges and signals positive prospects for Nigeria’s economic recovery.
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