The Nigerian National Petroleum Corporation Limited (NNPCL) has applied to take ₦3.4 trillion crude-backed loan to enhance its operations and boost Nigeria’s economy.
According to Reuters, the $2 billion – ₦3,047,740,000,000 (Three trillion, Forty-seven billion, Seven hundred and forty million naira) using the Central Bank of Nigeria (CBN) buying cap of ₦1523.87 to $1 – would be sourced from international financial institutions.
Reuters on Tuesday, quoted that the Group Chief Executive Officer of NNPCL, Mele Kyari, said the $2 billion credit facility would help to boost its finances and allow investment in the oil and gas sector.
This is as Nairametrics reported that NNPCL was yet to pay international oil traders a backlog of $6 billion – ₦9,143,220,000,000 (Nine trillion, One hundred and Forty-three billion, Two hundred and Twenty million naira).
Kyari said the new loan was not a desparate act, but a normal business borrowing. He added that the Nigeria-owned oil company would have no problem covering its “gasoline payements“.
“We have no problem covering our gasoline 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.
As of March 2024, the Debt Management Office (DMO) quoted Nigeria’s external debt to be at ₦121.67 trillion ($91.46 billion).
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