By Emele Onu, with agency report, 06.23.2010
African Development Bank (AfDB) has extended $100 million line of credit to Guaranty Trust Bank (GTBank) to fund projects in Nigeria.
According to Reuters report, GTBank intends to fund projects in Nigeria in the oil, manufacturing and transport industries.AfDB was reported to have said in Tunis yesterday that the facility is in addition to credit provided to GTBank in May 2006. “The line of credit will be used primarily to support GTBank's long-term project finance activities in Nigeria in the transportation, infrastructure, oil and gas and manufacturing sectors,” the Tunis-based AfDB stated.
Meanwhile, at the foreign exchange market yesterday, the naira appreciated at the two official market segments. At the inter-bank market, the local currency rose to N151.40 to one dollar from N151.90/$1 the previous day, representing a gain by 50 kobo. At the official window, the wholesale dutch auction system (WDAS), the naira appreciated by 4 kobo against the dollar after the CBN sold all of the $243.13 million demanded by the dealer banks at N148.60/$1. The market regulator had sold $279 million at N148.65 per dollar, at the first in the bi-weekly auction last Monday. Parallel market rate was stable at N153/$1.Traders said the oil majors raised the supply of dollars at the market, which in turn aided the appreciation of the naira.
The Nigerian National Petroleum Corporation (NNPC), reportedly sold about $300 million, while Total Nigeria sold $53 million. The Nigerian Liquified Natural Gas Company, according to the trading details sold an unspecified amount, buoying dollar liquidity in the system. Traders expect the local currency to appreciate in subsequent trading days as the market approaches month- end, when oil firms usually offload their dollars in exchange for naira to meet local financial commitments.