The President Bola Tinubu-led federal government plans to secure an extra $2 billion loan from international creditors. This loan aims to strengthen the country’s financial resources, which have been under pressure in recent times.
According to a Reuters report on Tuesday, Mele Kyari, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Corporation (NNPC), confirmed that the national oil company is engaging in discussions with international creditors to secure a credit facility backed by oil.
The NNPC, facing difficulties in paying a $6 billion debt to international oil traders, has decided to pursue a credit facility backed by oil. The NNPC’s CEO, Mele Kyari, believes this facility will improve their finances and support investments in the oil and gas sector. However, Kyari did not disclose the specific international financial institution involved or the exact amount they intend to raise through this arrangement.
It is worth mentioning that the NNPC currently possesses an oil-backed loan of $3.3 billion obtained from Afreximbank.
Kyari stated that the funds generated from the loan will be utilized for various business operations of the NNPC, encompassing the assistance of production expansion.
“We have no problem covering our gasoline payments. This is just money for normal business and not a desperate act,” Kyari said. “It will be a syndication with critical but regular partners who have been in business with our company to forward the cash.”
