Afreximbank backs financing deal

The Nigerian National Petroleum Corporation (NNPC) is in talks to raise about $1 billion in a prepayment with trading firms to refurbish its largest refining complex at Port Harcourt. The Port Harcourt complex consists of two plants with a combined capacity of 210,000 bpd. In 2019, the Port Harcourt plants including other refineries lost some N167 billion ($439.47 million).

Reuters, which reported this yesterday, quoted seven sources familiar with the discussions, including the spokesperson for Afreximbank. If the financing is concluded, the long overdue rehabilitation of the refinery should reduce Nigeria’s hefty fuel import bill.

This would also mark Nigeria’s second oil-backed financing since the COVID-19 scourge that has added to the difficulty of finding investors as fuel demand is sapped by lockdowns and renewable energy is gaining ground over fossil fuels.

The money would be repaid over seven years through deliveries of Nigerian crude and products from the refinery once the refurbishment is completed, the sources said. Cairo-based Afreximbank is leading the financing. “Afreximbank is looking into a facility for the refurbishment of the Port Harcourt Refinery.

However, the borrower is yet to be determined,” a spokesman for the bank said. NNPC declined to comment. The sources said discussions were taking place with a range of foreign and Nigerian trading houses, including some who have previously worked with Nigeria and who asked not to be named. Apart from the problems of COVID-19 and increased investor preference for carbon- free energy, defaults and fraud in commodity trading, mainly in Asia, have reduced the appetite of foreign banks for exposure to commodity trade finance.

A source at one foreign bank, also asking not to be named, said it was unlikely to participate in Nigeria’s latest effort because of lower credit availability and increased reluctance to take out exposure in a high risk country. Nigeria, Africa’s most populous country, has four refineries with a combined capacity of 445,000 barrels per day (bpd): one in Kaduna and three in Warri and Port Harcourt. In April 2020, all refineries in Nigeria were shut pending rehabilitation. Nigeria has struggled with the poorly maintained units for decades.

Successive NNPC chiefs have announced a series of unsuccessful plans to revamp, privatise or expand the refineries. NNPC abandoned a similar attempt in 2019 to partner with oil traders, producers and engineering firms to fund refinery revamps after over a year of talks, saying it would fund the projects itself. The barely functional plants leave Nigeria completely dependent on imports and subsidy schemes also cost the country billions of dollars.

In December, NNPC opened a bid round for a contract to rehabilitate the Port Harcourt complex. NNPC GMD, Mele Kyari, also said last year that private companies would run the refineries once they were rehabilitated. In July, global energy trader Vitol and Nigerian firm Matrix backed by banks agreed to lend NNPC $1.5 billion to support its upstream arm, NPDC, although the discussions that led to the deal predated COVID-19.

https://www.newtelegraphng.com/nnpc-shops-for-1bn-loan-to-revamp-pharcourt-refinery/

This loan na loot O.

Nigeria's petroleum minister + all supporters will not die well. Vultures will feed on their carcass.

Foolish incompetent mofos

If China no take over this country by 2023 make l know weti cause am.

Another loan when FG is now stealing citizens money

Just use the place for bomb testing. Should be closed down. To think it was sold to Dangote by obasanjo. But the dullard yar adua reversed the sale. https://www.google.com/amp/s/www.vanguardngr.com/2015/07/how-yaradua-was-pressurised-to-revert-refineries-sold-to-dangote-obasanjo/amp/

To be frank, give guys in Bunkery business $100Million, they’ll build a world class refinery for you. I’ve visited most Bunkery sites, believe me, those guys are really good. With local and little equipments, they can produce all petroleum products with just firewoods.

How much is a brand new one?

ednut1:
Just use the place for bomb testing. Should be closed down. To think it was sold to Dangote by obasanjo. But the dullard yar adua reversed the sale. https://www.google.com/amp/s/www.vanguardngr.com/2015/07/how-yaradua-was-pressurised-to-revert-refineries-sold-to-dangote-obasanjo/amp/

If Yar'adua is a dullard, then God help Buhari

Lol, how much (in dollars) is nnpc as a company worth that it should be giving 1billion dollars IN LOAN to revamp a refinery that wouldn't supply 10% the nation fuel demand even when running on full capacity?
What (in dollar) was nnpc revenue for the last fiscal year?
How much profit has it made in the last 10years?

Atiku suggested that this nnpc be privatized and people who hasn't benefited 1naira since the day nnpc was created jumped on him. Guess what?? That idea didn't even come from atiku! It came from same place where the idea to privatize of telecom industry came from. Personally, I believe atiku is to dumb to think of something that good. Maybe he wouldn't even privatize it if elected cause its more corruption profitable to keep nnpc this way than make it go to private hands.

Back to the main discussion, the FG is the viable to get any loans it want to insofar as it credit ratings looks good for the foreseeable future and it bonds continue to yield profit. That said, using a fake badly run political company like nnpc as a decoy to get loans is foolish!
FG, you go get loans if you want loans! Stop deceiving yourselves with fake nnpc project!!! No loan giving institution would risk 50kobo in nnpc. NONE!!

BeeBeeOoh:
If Yar'adua is a dullard, then God help Buhari

buhari is on another level of dullness

Another looting

ednut1:
buhari is on another level of dullness

Nawa oh! The dullness of Buhari makes dullness dull.



Chai! God help Nigeria

Another scam! Which refineries? Criminals! The ones that have not refined any crude oil but have consumed so much billions despite the TAM on these moribund refineries?

BeeBeeOoh:
Nawa oh! The dullness of Buhari makes dullness dull...

Wait oo which kain country I dey so?

ednut1:
buhari is on another level of dullness

That is big disrespect to the word DULL

Pls create something new for BMC Bubu

Nah eh! No qualms
This is so unsophisticated


Next thing now
The will start borrowing from China

We already know
It's next level of borrowing

Loan kill all of una there .

This people just loot anyhow

no amount of rehabilitation can guarantee 70% production capacity before it starts giving way again..............use the money to build 2 new modular refineries preferrably 1bn$ can build 3 proper farm settlements...with storage facilities, proper roads to the farm settlement, irrigation systems, other farm infrastructures needed

Not again �

Ah

Not surprised, the funds that could salvage them has been looted

BTW,
It's a new year
Contact us for anything UK used Laptops
Contact in signature

How many BILLIONS have they spent on this Portharcout refinery from Obasanjos regime to Buharis? Them no dey tire to use this very refinery to dupe Nigerians?

It is well

We have quality 3D wallpaper at 2800 per roll
Check signature for pictures

Borrow borrow Government....

Buhari destiny is to impoverish Nigeria and put her in eternal debt....

While yoruba muslims cheer him on...

After all d money they've looted.

Nigerians are just a group of directionless ants to them.

Not until the people wise up.

Why did the Nigerian government wait this long after further deterioration of the refinery for the revamp? SMH!

Islie:
Afreximbank backs financing deal



https://www.newtelegraphng.com/nnpc-shops-for-1bn-loan-to-revamp-pharcourt-refinery/

Loanigeria on it again.

..useless country

This country is running on a deficit