Nigeria’s National Oil Company Seeks Fresh Oil-backed Loan to Improve Finances

Nigeria’s National Petroleum Corporation (NNPC) is negotiating a new oil-backed loan to enhance its finances and support business investment, according to CEO Mele Kyari. Currently, NNPC has a $3.3 billion oil-backed loan through Afreximbank. Kyari confirmed the new loan will be backed by 30,000-35,000 barrels per day of crude production but declined to disclose how much the company is seeking. However, two sources familiar with the situation revealed that the company aims to raise at least $2 billion amidst escalating debts to gasoline suppliers, which have doubled to $6 billion in the past four months. Oil revenues are critical for the nation’s economy, but issues like pipeline theft and underinvestment have reduced production and left the country scrambling for cash. The loan is expected to be finalized within two months and will support all NNPC business activities.

SOURCE: NAIRAMETRICS