NNPC Denies Seeking New $2 Billion Oil-For-Cash Loan

By Joke Kujenya

THE NIGERIAN National Petroleum Company (NNPC) Limited has refuted claims that it is pursuing a new $2 billion oil-for-cash loan deal.

Recent media reports had suggested that the company was planning to secure the loan within the next two months, but NNPC management has dismissed these allegations.

Chief Corporate Communications Officer Olufemi Soneye confirmed that NNPC is not actively seeking new loan facilities at this time.

He assured that the company would make an official announcement if it decides to proceed with any new financial initiatives.

“We need funding for high capital expenditure projects and aggressive drilling campaigns,” Soneye said.

“Our financing arrangements are typically announced through our financial advisers and arrangers. Any new transactions will be communicated to the market when the time comes.”

Despite the rumours, NNPC CEO Mele Kyari reiterated that the company is not desperate for cash.

He mentioned the need for loans against crude production but did not specify any amount. “We have no problem covering our gasoline payments. This is just normal business,” Kyari said.

The reports also highlighted NNPC’s existing debt, which includes overdue payments of $4 billion to $5 billion for January imports. Some international petrol suppliers have ceased participating in recent tenders due to delayed payments.

In August 2023, NNPC secured a $3.3 billion emergency crude repayment loan from the African Export-Import Bank (Afreximbank).

This loan aimed to support the naira and stabilize the foreign exchange market.

According to Soneye, NNPC continues to manage its financial obligations and maintains that it will communicate any new financial strategies officially.

At JKNewsMedia, our dedication to delivering reliable news and insightful information to our cherished readers remains unwavering. Every day, we strive to provide you with top-notch content that informs and enlightens. By donating to JKNewsMedia, you directly contribute to our mission of delivering quality journalism that empowers and informs. Your support fuels our commitment to bringing you the latest updates and in-depth analysis. Let's continue to uphold the highest standards of journalism and serve our community with integrity and dedication. Thank you for being a part of the JKNewsMedia family and for your ongoing support.

Leave a Reply

Your email address will not be published. Required fields are marked *