Nigeria has approved a $4.5 billion financing arrangement with the state-owned Nigerian National Petroleum Company, freeing up funds to bolster foreign-exchange reserves and support the government’s infrastructure priorities.
The money comes from a refinanced pre-export crude facility secured by 78,750 barrels of daily oil output, according to the office of Vice President Kashim Shettima, with the National Economic Council approving the deal at a meeting on Monday. Of the total, $1.5 billion will refinance the outstanding balance of a 2023 NNPC loan, while NNPC will receive an additional $3 billion in fresh financing typically used to settle tax and royalty obligations and other liabilities upfront.
Finance Minister Taiwo Oyedele told the council the arrangement would free up resources for strategic priorities and strengthen the country’s financing framework. It marks Nigeria’s second major external financing deal this year, following a $5 billion total return swap agreement with First Abu Dhabi Bank in April, of which $1.5 billion has already been accessed.
Africa’s largest crude producer has lifted average output this year to 1.5 million barrels per day, reaching 1.56 million bpd in June, its highest level since April 2020, as the government targets 3 million bpd by 2030. A similar 2023 arrangement, arranged by the African Export-Import Bank with Gunvor International and Sahara Energy Resources participating, had a five-year tenor secured against 90,000 barrels of crude per day.
Source: worldoil.com