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NNPCL Eyes New $2bn Oil-Backed Loan To Boost Finances

Written by on July 10, 2024

The Chief Executive Officer, Nigerian National Petroleum Company Limited, Mele Kyari   during a recent interview said that the NNPCL is in talks for a fresh $2bn oil-backed loan to boost its finances and allow investment in its business.

According to the online news medium, NNPCL’s debts to Premium Motor Spirit or petrol suppliers have doubled in the last four months to hit $6bn.

This is as the federal government relies on oil exportation by the NNPCL for the bulk of its revenue, and as a source of funding for its capital projects.

However, crude oil production has been affected by crude oil theft, pushing low government revenue.

Also, the cost of gasoline subsidies has further depleted cash reserves.

President Bola Tinubu has been struggling to push through reforms in the country – including eliminating fuel subsidies, and allowing the naira currency to trade close to market levels – without pushing the country’s population to a cost-of-living breaking point.

Kyari confirmed the company wanted a loan against 30,000-35,000 barrels per day of crude production, but declined to say how much money it sought.

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