FGN to use oil in the ground as collateral to borrow $2b to pay for Fuel Subsidy debts etc

The federal government is planning to borrow an additional $2 billion in crude oil-backed loans from international creditors to boost its financial inflow.


Sponsored Images

Reuters reported that two sources familiar with the matter confirmed the details on Tuesday.

In addition, Mele Kyari, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Corporation (NNPC), informed Reuters that the national oil company is in discussions with international creditors to raise an oil-backed credit facility.

This follows the recent revelation that NNPC is struggling to pay international oil traders a backlog of $6 billion amid subsidy removal.

Kyari said the credit facility will help to boost its finances and allow investment in the oil and gas sector.

However, the GCEO did not disclose the international financial body with which NNPC is in talks, nor the amount it is planning to raise from the transaction.

He did mention that the cash raised would be used for all of NNPC’s business activities, including supporting production growth.

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,” Kyari said.  

Dear Readers, Good and credible news reportage is tedious task and requires huge finances.

We are soliciting your Noble support for as low as N1,000 your support would go a long way in assisting us to continue to guarantee our readers quality news.
Bank transfers can be made to:
Account Name: Harvest and Commercial
Bank: Sterling Bank
Account Number: 0078627735