The African Export-Import (AFREXIM) Bank is planning to use oil traders to fund a $3 billion loan to the Nigerian National Petroleum Company Limited (NNPC LTD), which is aimed at stabilising the naira.

According to Reuters’ sources, Afrexim Bank recently made contact with traders to gauge their interest in lending their support to the oil-backed loan to Nigeria’s national oil company, NNPC LTD.

Reuters’ sources also disclosed that Afrexim Bank has made an attempt to come up with the terms which they will present to trading houses.

This is as a result of Nigeria’s currency rising to as much as 1000 naira to one dollar in the foreign exchange (FX) market.

“There is a lot of interest, but they need to see the conditions,” a senior oil executive with knowledge of the negotiations told Reuters’ sources.

The executive added that increasing oil prices above $90 a barrel would help increase interest, but he asked that his name not be used because he is not permitted to speak publicly on the matter.

Meanwhile, NNPC Ltd. said in August that it had secured an emergency $3 billion crude oil repayment loan, which is aimed at stabilising the naira.

NNPC Limited, in a statement, said it secured the crude-for-cash funding from African Export-Import (AFREXIM) Bank headquarters in Cairo, Egypt.

The oil-for-cash loan is meant to be used to support the naira as it continues it’s free fall and also stabilise the foreign exchange market.

This is the fourth transaction being consummated between NNPCL and AFREXIM Bank over the last 3 years and goes to further consolidate the mutual relationship between the two entities.

Both Nigeria and NNPCL are shareholders in AFREXIM Bank, with the sole purpose of enhancing investments and growing prosperity in Africa.