Business & Economy

NNPCL Secures $1bn Crude Loan to Boost Dangote Refinery

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The Nigerian National Petroleum Company Limited (NNPCL) has secured a $1 billion loan backed by crude oil to support the Dangote Petroleum Refinery’s upcoming 650,000 barrels-per-day operations. This was revealed during the Energy Relations Stakeholders Engagement held in Abuja on Monday by the company’s Chief Corporate Communications Officer, Olufemi Soneye.

NNPCL also facilitated a $3 billion Gazelle loan as a strategic intervention to stabilize Nigeria’s foreign exchange market amidst mounting economic challenges.

Highlighting the company’s achievements, Soneye noted that under the leadership of Mele Kyari, NNPCL has reached significant milestones, including the January 2024 arrangement of a $3.3 billion crude oil prepayment facility in collaboration with Afreximbank. The facility was described as the largest crude-backed loan in Nigeria and one of the largest syndicated debts in Africa.

The $1 billion loan for the Dangote Refinery was described as a pivotal move to support liquidity and drive Nigeria’s first private refinery project.

“This initiative underscores NNPCL’s commitment to fostering public-private partnerships that fuel national development,” Soneye stated.

He also cited the restart of the Port Harcourt Refining Company as a landmark achievement in Nigeria’s push for energy self-sufficiency.

NNPCL’s adoption of Compressed Natural Gas (CNG) as a cleaner, cost-effective energy alternative amidst rising global energy costs was also emphasized.

“These initiatives reaffirm NNPCL’s dedication to delivering innovative energy solutions while advancing economic growth and sustainability,” Soneye added.

The company’s financial reforms have yielded historic results, including the first profit declaration in decades and exceeding profit projections for 2024. Soneye credited these accomplishments to transformative changes spearheaded by Kyari.

At the stakeholders’ meeting, NNPCL reiterated its role as a transformative force in Nigeria’s energy sector and a global game-changer. The event highlighted the importance of collaboration, innovation, and sustainability in shaping the future of energy.

“Energy relations are the backbone of NNPCL’s operations and strategic aspirations as an integrated energy company,” Soneye stated, pledging continued efforts to strengthen the energy sector and drive value across the energy value chain.

The company reaffirmed its commitment to ensuring energy security, economic growth, and environmental stewardship for Nigeria and beyond.

Mike Ojo

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