AfrieximBank has approved a $5 billion loan to the Nigerian National Petroleum Company (NNPC) Limited to assist the country’s upstream sector.

The NNPC Group Managing Director Mele Kyari announced this on Thursday via his official Twitter handle.

The deal, according to Kyari, arose from a meeting between the NNPC team and Benedict Oramah, Chairman of the Board of Directors and President of the African Export-Import Bank (Afreximbank), on Wednesday in Cairo, Egypt.

He disclose that the $5bn loans would be used to support Nigeria’s upstream businesses and facilitate NNPC’s energy supply program and transition.

The NNPC boss added that the loan would create opportunities for both the national oil firm and the financial institution.

He said the meeting in Cairo facilitated an agreement between the NNPC and Afreximbank to intensify efforts at deepening investment in Nigeria’s oil sector and collaboration between the parties.

Kyari said as part of the landmark transaction, Afreximbank would also underwrite $1 billion as part of the forward sales base trade finance transaction.

He added that the NNPC and Afreximbank also explored the innovative idea of establishing a pan-African Energy Transition Bank and agreed to join forces to achieve this objective.

Kyari said, “Afreximbank working with NNPC Ltd to raise $5bn financing to support our upstream businesses and facilitate energy supply and transition. Opening gate for many more opportunities of collaboration with Afreximbank.”