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African Export-Import Bank (Afreximbank) has disbursed $925 million to Nigeria's state-owned oil company, NNPC Limited (NNPCL), part of a syndicated $3.3 billion crude oil-backed prepayment facility.

According to a statement, today, by Afreximbank, this brings its total disbursement to NNPCL to $3.175 billion.

Afreximbank said the deal was the largest crude-backed facility in Nigeria and one of the largest syndicated debts raised in Africa.

The pan-African lender had been tapping oil traders to finance a $3 billion loan to Nigeria's state oil company after the energy firm approached it for the facility last August, to help the government's efforts in stabilising its naira currency, according to Reuters.

The naira had hit 1,000 to the dollar on the black market at the time the NNPC approached Afreximbank for the loan. On Thursday, the naira was quoted as low as 1,498 per dollar.

Afreximbank said the funds was raised from a consortium of crude oil off-taker lenders including Oando Group and Sahara Energy Resource Limited.

The trade bank had sought oil traders to fund the crude-backed loan to NNPC, with the aim to support Nigeria's macroeconomic stability and growth.

In December, Afreximbank received funding commitments totalling $2.25 million for the NNPCL loan request.

Nigeria's President Bola Tinubu launched reforms on assuming office on 29 May 2023, including devaluing the naira twice in less than six months in January to attract dollars after ending a multiple exchange rate system that keep the currency artificially strong.

The country has since been courting foreign investors for inflows with high yield offer by Central Bank of Nigeria at its open market Treasury bill auctions.