The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that it provided significant financial support to Dangote Petroleum Refinery with a $1 billion loan. According to the company, this loan was secured against crude oil, helping to address liquidity challenges faced by the refinery. The announcement was made during an Energy Relations Stakeholders Engagement in Abuja on Monday, highlighting the role of NNPCL in facilitating national development through strategic financial interventions.
Mr. Olufemi Soneye, the Chief Corporate Communications Officer of NNPCL, shared details of the loan, stating, “A strategic decision to secure a $1bn loan backed by NNPC’s crude was instrumental in supporting the Dangote refinery during liquidity challenges, paving the way for the establishment of Nigeria’s first private refinery.” This initiative, he emphasized, was a key part of NNPCL’s broader strategy to foster public-private partnerships and stimulate the growth of the nation’s energy sector.
In addition to supporting Dangote’s refinery, NNPCL also played a pivotal role in addressing Nigeria’s foreign exchange crisis by facilitating a $3 billion Gazelle loan. Soneye explained that this intervention was crucial in stabilizing the federation’s foreign exchange situation. “The $3bn Gazelle loan was a critical intervention that helped stabilize the federation during a challenging foreign exchange crisis,” he said, underscoring the company’s commitment to securing Nigeria’s economic stability.
Soneye also highlighted NNPCL’s achievement in securing a $3.3 billion crude oil prepayment facility in partnership with Afreximbank earlier in 2024. He noted that this syndicated deal was the largest crude-backed facility in Nigeria and one of the largest syndicated debts raised in Africa. This achievement, according to Soneye, reflects the national oil company’s dedication to advancing Nigeria’s energy and economic goals.
During the event, Soneye praised the leadership of Mele Kyari, NNPCL’s Group Managing Director, for steering the company towards groundbreaking achievements. “Under the visionary leadership of Mele Kyari, NNPC Ltd has achieved groundbreaking milestones, redefining the trajectory of Nigeria’s oil and gas sector,” Soneye said. He further commended Kyari’s role in facilitating the $3 billion Gazelle loan, which played a crucial role in stabilizing the nation’s economy.
Soneye also provided updates on the revitalization of Nigeria’s domestic refining capacity, specifically highlighting the restart of the Port Harcourt Refining Company. He described it as a major turning point in Nigeria’s pursuit of energy self-sufficiency. Additionally, he emphasized NNPCL’s commitment to adopting alternative energy sources, including Compressed Natural Gas (CNG), to offer Nigerians a cleaner and more cost-effective energy solution.
The NNPCL spokesperson concluded by stressing the company’s transformative impact on Nigeria’s energy sector and its role in shaping global energy relations. “Together, we stand at the forefront of a transformative era in the global energy landscape, where collaboration, innovation, and sustainability are key to success,” he said. Soneye affirmed that NNPCL would continue to strengthen Nigeria’s energy sector while working towards energy security, economic growth, and environmental sustainability.
