NNPCL's $1 Billion Deal Signals Boost For Dangote Refinery And Nigeria's Oil Sector

The Nigerian National Petroleum Company Limited (NNPCL) announced Monday that it secured a $1 billion loan backed by crude oil to support the launch of the 650,000 barrels per day at Dangote Refinery.

During the Energy Relations Stakeholders Engagement in Abuja on Monday, Chief Corporate Communications Officer Olufemi Soneye shared that the company also mentioned facilitating a $3 billion Gazelle loan to help stabilize the country's foreign exchange crisis, This Day Live reported.

Soneye said that these efforts showed NNPCL's commitment to encouraging national development partnerships. He also highlighted that under the leadership of Mele Kyari, NNPCL has reached massive milestones, changing the future of Nigeria's oil and gas sector.

The spokesperson explained that securing a $1 billion loan backed by NNPC's crude was a key decision to support the Dangote refinery during its liquidity issues, helping establish Nigeria's first private refinery.

He also emphasized that this initiative highlighted NNPCL's commitment to promoting public-private partnerships for national development.

Soneye mentioned the restart of the Port Harcourt Refining Company, calling it a major step towards Nigeria achieving energy self-sufficiency and reaffirming the company's commitment to improving the country's refining capacity.

In January 2024, the company arranged a $3.3 billion syndicated crude oil prepayment facility with Afreximbank. The bank called the deal the largest crude-backed facility in Nigeria and one of the largest syndicated loans raised in Africa.

The spokesperson pledged that NNPCL would continue to strengthen Nigeria's energy sector, while building its legacy as a transformative global force. At the stakeholders' meeting, he acknowledged the importance of stakeholders in shaping the future of energy in Nigeria and beyond.

He emphasized that collaboration, innovation, and sustainability are crucial for success in the global energy sector. He said that energy relations are central to NNPCL's operations and goals as an integrated energy company.

Soneye reiterated NNPCL's commitment to fostering strong relationships, driving excellence, and creating value across the energy sector. The meeting, he added, highlighted the shared goal of ensuring energy security, economic growth, and environmental responsibility for everyone's benefit.

Last week, Minister of Budget and Economic Planning Senator Abubakar Atiku Bagudu revealed that the federal government was all set to receive a $500 million loan from the World Bank for the Human Capital Opportunities for Prosperity and Equity project.