The NNPC has initiated steps to secure a $2 billion oil-backed loan to finance its operations, as reported.
In response to inquiries, NNPC Ltd’s Chief Corporate Communications Officer, Olufemi Soneye, stated, “We will make an official announcement when we are ready to proceed with any of the initiatives mentioned. As a global energy company, we need funding for aggressive drilling campaigns and high capital expenditure projects. Our financing arrangements are typically announced through our financial advisers and arrangers. When the time comes, new financing transactions will be announced to the market.”
Reuters reported that the Nigerian National Petroleum Corporation (NNPC) is in discussions for another oil-backed loan to bolster its finances and enable investment in its business. NNPC’s chief executive told Reuters that the state-backed oil company, crucial to the Nigerian economy, aims to raise at least $2 billion. This move is essential as Nigeria’s government finances heavily rely on oil exports for foreign exchange reserves. However, challenges such as pipeline theft and underinvestment have impacted oil production, while gasoline subsidies have further strained financial reserves.
NNPC Chief Mele Kyari mentioned to Reuters that the loan would be secured against 30,000-35,000 barrels per day of crude oil, though he did not specify the exact amount sought. He emphasized that the funds would support all of NNPC’s business activities, including production growth, and clarified, “We have no problem covering our gasoline payments. This is just money for normal business and not a desperate act.”
