Afrexim Bank is tapping oil traders to finance a $3 billion loan to Nigeria’s state oil company that is central to the country’s efforts to support the naira, three sources told Reuters.
The currency hit an all-time low of 1,000 to the dollar on the black market on Tuesday.
According to Reuters, Afrexim had approached traders in recent weeks seeking their interest in funding the oil-backed loan to state oil company NNPC LTD, the sources said. It is working to craft terms to offer to the trading houses.
“There is a lot of interest, but they need to see terms,” one oil executive close to the talks told Reuters. The executive, who could not be named because he was not authorised to speak publicly on the issue, added that oil prices climbing past $90 per barrel would help drive interest.
An NNPC spokesman did not respond to a request for comment. Afrexim did not immediately comment.
During his confirmation hearing on Tuesday, incoming central bank chief Olayemi Cardoso said clearing unsettled foreign exchange obligations to local lenders, which could be as high as $7 billion, was his top priority.