Africa News

Published: November 24, 2020

NNPC gets US$1.5bn before conditions rapidly deteriorate in Nigeria

State owned Nigerian National Petroleum Corporation (NNPC) signed a US$1.5bn pre-export finance facility from a consortium of commercial and multilateral lenders. 

The biggest tranche of the deal is a US$1bn dollar denominated five-year loan. The second, smaller, tranche is a US$500mn-equivalent naira denominated loan with a seven-year tenor. 

Africa Export-Import Bank, Standard Chartered, United Bank for Africa and Union Bank provided the financing alongside two oil trading companies – Nigeria’s Matrix and Vitol.

The financing comes as the oil price remains well below Nigeria’s budgetary break even. In mid-November, a barrel of Brent crude cost US$44.08. Nigeria needs oil to be at US$60 to balance its books.

This content is only available to our subscribers. Please click here for details of subscription plans or to request trial access.