Fuel Scarcity: NNPC Seeks Fresh $2bn Oil-For-Cash Loan Deal

Amidst the fuel scarcity in the country, the Nigerian National Petroleum Company Limited (NNPCL), is planning to secure a fresh $2 billion oil for cash loan.

NNPCL, according to Reuters on Tuesday, plans to achieve the deal in two months.

The Group Chief Executive Officer, Mele Kyari said the new financing would allow investment in its business.

“We have no problem covering our gasoline payments. This is just money for normal business and not a desperate act,” Kyari told Reuters.

Kyari said the company 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.

READ: “It Is Very Unfortunate”: Nigerians Lament As Fuel Scarcity Hits Hard In Northern States

“It will be a syndication with critical but regular partners who have been in business with our company to forward the cash.”

Kyari added that he expected to conclude the deal in the next two months.

Meanwhile, a report emerged that NNPCL’s debts to petrol suppliers had doubled in the last four months to hit $6 billion.

According to Reuters, NNPC’s mounting debt, which includes overdue payments exceeding $4 billion-$5 billion for January imports alone as several international petrol suppliers have ceased participating in recent tenders.

However, the spokesperson of NNPC, Olufemi Soneye dismissed the claim.

Recall that NNPCL had on August 16, 2023, secured a $3.3 billion emergency crude repayment loan — a transaction aimed at supporting the naira and stabilizing the foreign exchange (FX) market.