₦airaland Forum

The Nigerian National Petroluem Company Ltd has secured a $5bn corporate finance commitment from the African Export Import Bank to fund major investments in Nigeria’s Upstream sector.

The funding commitment is a fallout of the meeting between the Chairman of the Board of Directors and President of the African Export-Import Bank( Afreximbank), Benedict Oramah; and the NNPC Ltd team led by the Group Managing Director/Chief Executive Officer , Mele Kyari, in Cairo, Egypt on Wednesday.

Mr Kyari was accompanied on the trip by the Chief Financial Officer, Umar Ajiya; the Group Exceutive Director , Upstream, Adokiye Tombomieye; the Group General Manager, NAPIMS, Bala Wunti; the Managing Director, NNPC Trading, Lawal Sade, and others.

The move is a major milestone achievement in the quest for the corporation to scale up investments in the oil and gas industry following the commencement of the implementation of the Petroleum Industry Act.

The PIA was signed into law by President Muhammadu Buhari on 16th August, 2021.

Following the assent of the President, the NNPC LTD was incorporated by the Corporate Affairs Commission on September 22 last year after it received application for its registration from the Federal Government.

The new legislation has provided business opportunities that will enable the NNPC earn more revenue for the country and attract foreign direct investment into the Nigerian energy sector

The PIA has also raised stakeholders expectations on the company, even as it has given it a wide room to stimulate investments in the oil and gas industry.

The NNPC’s $5bn corporate finance commitment from Afreximbank is seen by oil industry stakeholders as a dividend of the Petroleum Industry Act and the incorporation of the NNPC as a limited liability company.

Under the NNPC Ltd funding strategy for selected upstream investments, the Company would be raising between $3.5bn and $5bn as corporate finance to fund major upstream investments.

To achieve this objective, the NNPC plans to take over ownership from non-investing partner through acquisition of pre-emption rights in the sample Joint Venture.

The NNPC’s strategy would also see the company investing in assets to address integrity, bottlenecking and growth issues including rig-less activities, and drilling campaigns in the oil industry.

The company’s preference is to source lenders that can provide this funding in a ratio based on the capacity of each of the lenders.

The funding would also be used to finance part of the NNPC’s investment including acquisition of interest in quality upstream oil and gas producing assets.

The acquisition is an integral part of the NNPC’s corporate strategy to rebalance its portfolio by divesting from some toxic assets to acquire choice strategic assets that will help support its long term strategic objectives.

The repayment of the funding is expected to be done through a Forward Sale Arrangement whereby the funds provided will constitute the payment purchase of 90-120kpd of crude to be delivered to the lender over a period.

The repayment of the fund is being projected to be made within a four to eight-year period with an objective to ensure major fiscal obligations and operating expenses are discharged appropriately.

The meeting between the NNPC and Afreximbank team agreed to intensify efforts at deepening investment in Nigeria’s oil sector.

Also, the NNPC and the Afreximbank agreed to, among other things, deepen the business collaboration between the two institutions.

The bank agreed to enter into a finance advisory and fundraising role to raise $5bn towards the “acquire, invest and operate energy producing assets in Nigeria as part of NNPC’s growth strategy following its incorporation as a limited liability company.”

As part of the landmark transaction, Afreximbank will also underwrite $1bn as part of forward sales base trade finance transaction.

The NNPC and Afreximbank also explored the innovative idea of establishing a pan-African Energy Transition Bank and agreed to collaborate towards achieving the objective.

Mr Kyari was accompanied on the trip by the Chief Financial Officer, Umar Ajiya; the Group Exceutive Director , Upstream, Adokiye Tombomieye; the Group General Manager, NAPIMS, Bala Wunti; the Managing Director, NNPC Trading, Lawal Sade, and others

owobokiri:
.

None of these names come from the Oil and gas producing communities, yet they own Nigerias oil and gas sector and steal billions yearly. The whole of the NNPC is now a northern Nigeria property, with few slots given to to their hungry Southern obedient servants. It's unbelievable

owobokiri:
.

None of these names come from the Oil and gas producing communities, yet they own Nigerias oil and gas sector and steal billions yearly. The whole of the NNPC is now a northern Nigeria property, with few slots given to to their hungry Southern obedient servants. It's unbelievable

JavaScript90:
Look at how strangers from the Sahel are making decisions for the indigenous oil producers. Lots of injustice in this country.

One Nigeria with this current structure na scam

owobokiri:
.

None of these names come from the Oil and gas producing communities, yet they own Nigerias oil and gas sector and steal billions yearly. The whole of the NNPC is now a northern Nigeria property, with few slots given to to their hungry Southern obedient servants. It's unbelievable

BCISLTD:
How can a nation's main revenue generating agency be seeking funding? This country is finished....everyone working in NNPC should be in jail.

BCISLTD:
How can a nation's main revenue generating agency be seeking funding? This country is finished....everyone working in NNPC should be in jail.

ufotunang:
They will not use that money to build refineries now which is the major problem the oil sector is facing and Nigeria...so that this issue of fuel subsidy can be solved... they will just misappropriate and embezzle the money and use it to buy flashy cars and build mansions

winterfell007:
So much investment to a dying industry. Elon Musk needs to re-engineer the Tesla electric automotive to suit the Africa market, that should speed up the death of the oil polluting industries and preserve our planet and then Nigeria’s government will finally have sense

JavaScript90:
Look at how strangers from the Sahel are making decisions for the indigenous oil producers. Lots of injustice in this country.

One Nigeria with this current structure na scam

ufotunang:
They will not use that money to build refineries now which is the major problem the oil sector is facing and Nigeria...so that this issue of fuel subsidy can be solved... they will just misappropriate and embezzle the money and use it to buy flashy cars and build mansions

backbencher:
Well it is for upstream investments which includes refining..

Plus 5 billion cannot build a refinery. A big one of the type you have in mind.

NNPc can build a lot of refineries if Buhari had just simply removed subsidy, so that they can earn the profit needed to do so

FreeStuffsNG:
Please ,you better go through the names slowly and don't embarrass yourself like most IPOB terrorists filled with bitterness, hatred and bigotry do online.

There are Ijaw and Yoruba names in that list you quoted and staring everyone in the face. Ha!Bigotry, lying, hatred and bitterness with poor mental health bad gan o. May you not suffer such terrible afflictions.


This man called Mele Kyari, a Nigerian Patriot has got the Midas touch. He is just too good. I remember then the naysayers say we will never get funding for Train 7, under his leadership, he didn't only get the funding for the Train 7,he got the IOCs back on board. Now with his zeal and commitment and political will of PMB to get the decade long PIA PDP could not give us, same Mele Kyari is leading the transition of NNPC from a government agency to start operating as NNPC Limited that will eventually list its shares on Nigeria Stock Exchange. If you want a good mentor in excellence and patriotism, go and ask about and read about the man Mele Kyari.

This is a milestone and I applaud NNPC and Afrexim, under the leadership of another Nigerian Patriot ,Benedict Oramah, for making it a success.

This is a huge investment to help us increase investment in the oil and gas industry and increase our asset in that sector. I really hope oil price remains favourable to enable the investment pay back in a profitable business model.

All the enemies of Nigeria will lose las las. They always lose. God bless Nigeria forever.


Meanwhile, once again, I plead with you my fellow patriotic Nigerians, please vote Asiwaju Tinubu.

Asiwaju Tinubu is extremely capable and competent to lead Nigeria to greater heights.
He will deliver and keep his promises to lead Nigeria to greater heights. He is an experienced public administrator and a Patriot to the core.
Please vote for Asiwaju Tinubu.
Thank you.
May God bless you and may God bless Nigeria forever.

COMPAQ:
[s]NLNG is one of the cash cows for IOC's in Nigeria. There was never any issue from IOC's with respect to train 7! If anything train 7 had been delayed by the broke and incompetent government that can't get anything done speedily.[/s]

NwaNimo1:
https://www.premiumtimesng.com/business/508175-nnpc-secures-5bn-funding-from-afreximbank-for-nigerias-oil-industry.html

owobokiri:
.

None of these names come from the Oil and gas producing communities, yet they own Nigerias oil and gas sector and steal billions yearly. The whole of the NNPC is now a northern Nigeria property, with few slots given to to their hungry Southern obedient servants. It's unbelievable

JavaScript90:
Look at how strangers from the Sahel are making decisions for the indigenous oil producers. Lots of injustice in this country.

One Nigeria with this current structure na scam

owobokiri:
.

None of these names come from the Oil and gas producing communities, yet they own Nigerias oil and gas sector and steal billions yearly. The whole of the NNPC is now a northern Nigeria property, with few slots given to to their hungry Southern obedient servants. It's unbelievable

ArewaNorth:
You need to eschew this bigotry and face reality. No organisation in Nigeria is established for specific group of people in whatever guise.
NNPC board is made up of people equally represented from each geopolitical zones. What u failed to understand is, many people from 3 Northern zones may likely share similar names unlike Southern Nigeria where SS names is different from SW or SE. This is actually why many Nigerians failed to understand when PMB make appointments with such names some Southerners accuse him of bias because South is so divided unlike North where people appreciate appointments irrespective of zone, religion or tribe.

Note, among the names u listed one of them is from Katsina (NW), Bauchi (NE) and the other is from NC (can't remember his state) while North take the only advantage of the NNPC Head being a Northerner from North-East.

FreeStuffsNG:
Please ,you better go through the names slowly and don't embarrass yourself like most IPOB terrorists filled with bitterness, hatred and bigotry do online.

There are Ijaw and Yoruba names in that list you quoted and staring everyone in the face. Ha!Bigotry, lying, hatred and bitterness with poor mental health bad gan o. May you not suffer such terrible afflictions.


This man called Mele Kyari, a Nigerian Patriot has got the Midas touch. He is just too good. I remember then the naysayers say we will never get funding for Train 7, under his leadership, he didn't only get the funding for the Train 7,he got the IOCs back on board. Now with his zeal and commitment and political will of PMB to get the decade long PIA PDP could not give us, same Mele Kyari is leading the transition of NNPC from a government agency to start operating as NNPC Limited that will eventually list its shares on Nigeria Stock Exchange. If you want a good mentor in excellence and patriotism, go and ask about and read about the man Mele Kyari.

This is a milestone and I applaud NNPC and Afrexim, under the leadership of another Nigerian Patriot ,Benedict Oramah, for making it a success.

This is a huge investment to help us increase investment in the oil and gas industry and increase our asset in that sector. I really hope oil price remains favourable to enable the investment pay back in a profitable business model.

All the enemies of Nigeria will lose las las. They always lose. God bless Nigeria forever.


Meanwhile, once again, I plead with you my fellow patriotic Nigerians, please vote Asiwaju Tinubu.

Asiwaju Tinubu is extremely capable and competent to lead Nigeria to greater heights.
He will deliver and keep his promises to lead Nigeria to greater heights. He is an experienced public administrator and a Patriot to the core.
Please vote for Asiwaju Tinubu.
Thank you.
May God bless you and may God bless Nigeria forever.