Nigeria’s oil giant, NNPCL seeks fresh $2bn crude-backed loan | APAnews

The Group Chief Executive Officer of the Nigerian National Petroleum Corporation Limited (NNPCL), Mr. Mele Kyari, has said that the company is in talks for another oil-backed loan to boost its finances and allow investment in its business.
According to the report by Punch newspaper on Wednesday, Mr. Kyari told Reuters on Tuesday that the NNPCL wanted the new loan against 30,000-35,000 barrels per day of crude production, though he declined to say how much money it sought.
The report added that the move by the NNPCL is coming in the midst of petrol scarcity on Tuesday and Wednesday in Abuja and Lagos, which marketers blamed on the shortage of supply by the NNPCL,.
The NNPCL is presently, the sole importer of petrol into Nigeria as other dealers stopped importing the commodity due to their inability to access foreign exchange from the Central Bank of Nigeria.
According to the report, the NNPCL’s debts to petrol suppliers had doubled in the last four months to hit $6bn.
But the spokesperson of the NNPCL, Mr. Olufemi Soneye has described that report as false
“False. Did they name the marketers they claim we supposedly owe? Let them name them,” Soneye said while responding to the Reuters report.
However, Mr. Kyari confirmed that the NNPCL wanted a loan against 30,000-35,000 barrels per day of crude production, but declined to say how much money the company was seeking.
He said the cash raised would be used for all of NNPC’s business activities, including supporting production growth.
It will be recalled that in August 2023, NNPCL announced that it had secured a $3.3bn emergency crude oil repayment loan from the African Export-Import Bank.
When the $3.3bn loan is added to the newly proposed loan of $2bn, it means the national oil company is about raising its crude-backed loans to $5.3bn.
GIK/APA