Nigeria Approves USD 4.5 Billion Oil-Backed Financing Secured on NNPC Crude
Nigeria's National Economic Council approved a USD 4.5 billion oil-backed financing arrangement with the state-owned energy firm at a meeting on Monday, according to World Oil, freeing funds for foreign-exchange reserves and the government's infrastructure priorities.
The money comes through a refinanced pre-export crude facility secured on 78,750 barrels of daily output by the Nigerian National Petroleum Co (NNPC), World Oil reported.
The package splits in two. USD 1.5 billion refinances the outstanding balance of a 2023 NNPC loan, and the remaining USD 3 billion goes to the company as fresh financing, according to World Oil.
On production, World Oil reported that Nigeria pumped 1.56 MMbpd in June, its highest monthly level since April 2020, and has lifted average output this year to 1.5 MMbpd. The government's stated target is 3 MMbpd by 2030.
The arrangement is the country's second major external financing deal this year. It follows a USD 5 billion total return swap agreement signed with First Abu Dhabi Bank in April, according to World Oil.
Source: worldoil.com (opens in a new tab)1 sourcePermalink