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Over $2 billion in oil-for-cash financing is given to NNPCL by UBA and Afreximbank

$2.25 billion has been disbursed from the $3.3 billion oil-for-cash loan facility provided by the Nigerian National Petroleum Company Limited (NNPCL) by the African Export-Import Bank (Afreximbank) and United Bank for Africa (UBA).A statement released by UBA states that a $2.25 billion first tranche has been paid out, and that a second tranche of $1.05 billion is scheduled to be paid out.The $3.3 billion emergency loan was obtained in order to alleviate the nation of its outstanding foreign exchange liabilities, which exceed $7 billion, and to stabilize the country's unstable foreign exchange market. A 6% annual margin is added to the three-month secured overnight financing rate for the five-year credit.Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commented on the facility's success and emphasized the bank's commitment to bolstering African economies when such assistance is most needed.