NewsWe're Not Currently Seeking $2bn Fresh Loan – NNPC

We’re Not Currently Seeking $2bn Fresh Loan – NNPC

July 09, (THEWILL) – The Nigerian National Petroleum Company (NNPC) Limited has said it is not currently seeking a fresh $2 billion oil-for-cash loan deal.

Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye, who made this known, said the company would make an official announcement when it is ready for any loan.

“When we are ready to proceed with any of the initiatives mentioned, we will make an official announcement. As a global energy company, we need funding to undertake aggressive drilling campaign.

“Naturally, we will require financing for our 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,”  Soneye said.

Soneye’s response followed a Reuters report that the NNPC is actively seeking a new loan of about $2bn to strengthen its financial position and support ongoing operations.

According to Reuters, NNPC Group Chief Executive Officer, Mele Kyari, said the company wanted a loan against 30,000-35,000 barrels per day of crude production, adding that the cash raised would be used for all of the NNPC’s business activities, including supporting production growth.

“We have no problem covering our petrol payments. This is just money for normal business and not a desperate act. It will be a syndication with critical but regular partners who have been in business with our company to forward the cash,” Reuters quoted Kyari.

The report further stated that NNPC’s debts to petrol suppliers had doubled in the last four months to hit $6bn. This was, however, countered by Soneye.

“False. Did they name the marketers they claim we supposedly owe? Let them name them,” Soneye said.

THEWILL recalls that NNPC had in August 2023, announced that it had secured a $3.3bn emergency crude oil repayment loan from the African Export-Import Bank. Sources said the company’s lack of cash had been aggravated by rising fuel subsidy costs, and that the new loan would help it to pay them.

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