The Nigerian National Petroleum Corporation Limited (NNPCL) has applied for a ₦3.4 trillion ($2 billion) crude-backed loan to enhance its operations and support Nigeria’s economy. According to Reuters, the loan will be sourced from international financial institutions, with the funds aimed at boosting NNPCL’s finances and enabling further investment in the oil and gas sector.
Group Chief Executive Officer Mele Kyari clarified that the loan is a standard business practice, not a desperate measure. He assured that NNPCL can cover its gasoline payments and emphasized that the funds will facilitate normal business operations. The company is also addressing a backlog of $6 billion owed to international oil traders.
As of March 2024, Nigeria’s external debt stood at ₦121.67 trillion ($91.46 billion), according to the Debt Management Office.