Afreximbank Releases $2.25 Billion to Tackle FX Shortage and Foster Economic Growth

The African Export-Import Bank (Afreximbank) has officially initiated the disbursement of $2.25 billion as part of the approved $3.3 billion crude oil prepayment facility for Nigeria. This critical financial support aims to address the severe foreign exchange (FX) shortage in the country, which has been constraining economic activities and undermining investor confidence.

In a statement released on its website, Afreximbank revealed the successful transfer of the initial $2.25 billion, with an additional $1.05 billion expected to follow in a second tranche. The move comes as a response to Nigeria’s pressing need for FX intervention, highlighted by President Bola Tinubu’s earlier commitment in December to resolve FX backlogs by injecting funds into the market.

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Prof. Benedict Oramah, President and Chairman of the Board of Directors at Afreximbank, emphasized the institution’s dedication to supporting African economies in challenging times. He stated that the disbursement would contribute to Nigeria’s long-term economic stability, facilitate access to import financing for crucial raw materials and essential goods, and bolster efforts in industrialization and trade development.

Despite typical year-end pressures, Afreximbank expressed gratitude to partners and investors for their swift commitment of funds, marking a record time accomplishment. This move is anticipated to play a pivotal role in supporting Nigeria’s economic growth and stability.