Afrigather Nigeria’s state-owned oil firm, the Nigerian Nationwide Petroleum Firm (NNPC), is contemplating securing a brand new $2 billion mortgage utilizing crude oil pre-payments as collateral, in response to findings by BusinessDay.
Mele Kyari the group common supervisor stated the corporate needed a mortgage towards 30,000-35,000 barrels per day of crude manufacturing, however declined to say how a lot cash it sought.
He stated the money raised could be used for all the NNPC’s enterprise actions, together with supporting manufacturing development.
Learn additionally: NNPC, marketers blame logistics as petrol scarcity disrupts businesses
“We have now no drawback protecting our gasoline funds. That is simply cash for regular enterprise and never a determined act,” Kyari informed Reuters.
It’s unclear which lender would prepare the mortgage, as three sources stated Afrexim could be unable to increase its publicity to Nigeria that far.
BusienssDay on July 6 reported NNPC owes round $6 billion to worldwide merchants for imported petrol as merchants stated the state-owned firm is taking extra days to make cost as a substitute of inside 90 days.
In accordance with Reuters, NNPC’s mounting debt, which incorporates overdue funds exceeding $4 billion-$5 billion for January imports alone as a number of worldwide petrol suppliers have ceased collaborating in current tenders.
All 5 sources who spoke to Reuters requested to not be named as a result of they weren’t authorised to talk on the problem.
“It is going to be a syndication with vital however common companions who’ve been in enterprise with our firm to ahead the money,” Kyari stated on Tuesday including he anticipated to conclude the deal within the subsequent two months.
Efforts to get Olufemi Soneye, the chief company communications officer at Nigerian Nationwide Petroleum Firm Restricted (NNPC), to verify the recent oil backed Mortgage proved abortive.
Learn additionally: Presidency raises alarm over NNPC’s non-completion of PH refinery
On August 16, 2023, the Nigerian Nationwide Petroleum Firm (NNPC) Restricted secured a $3.3 billion emergency crude compensation mortgage — a transaction geared toward supporting the naira and stabilising the international trade (FX) market.
Organized by the African Export-Import Financial institution (Afreximbank), the $3.3 billion crude-for-cash mortgage was additionally focused at supporting the federal authorities’s financial and monetary reforms.
