The Nigerian National Petroleum Company (NNPC) Limited says the company’s decision to secure a $1 billion loan backed by its crude was instrumental in supporting the Dangote refinery during liquidity challenges.
NNPC’S Chief Corporate Communications Officer, Olufemi Soneye made the remark on Monday, while speaking during an energy relation stakeholder engagement.
“A strategic decision to secure a $1 billion loan backed by NNPC’s crude was instrumental in supporting the Dangote Refinery during liquidity challenges, paving the way for the establishment of Nigeria’s first private refinery,” he said.
“This initiative underscores NNPC’s dedication to fostering public-private partnerships that drive national development.”
Soneye added that the NNPC has achieved innovative milestones and redefined the trajectory of Nigeria’s oil and gas sector under the leadership of the company’s new group chief executive officer (GCEO), Mele Kyari,
“The restart of the Port Harcourt Refinery marks a significant turning point in Nigeria’s quest for energy self-sufficiency, reaffirming the company’s commitment to revitalizing the nation’s refining capacity,” he said.
“NNPC has also championed the adoption of Compressed Natural Gas (CNG) as an alternative energy source, offering Nigerians a cleaner and more cost-effective solution amidst rising global energy costs.
“In a historic achievement, NNPC, under Kyari’s leadership, declared profit for the first time in decades, marking a significant financial turnaround.”
Soneye added that the company has already exceeded its “profit projections for 2024”, describing the development as a “testament to the transformative reforms he has implemented”.
According to Soneye, Kyari facilitated the $3 billion gazelle loan, “a critical intervention that helped stabilize the federation during a challenging foreign exchange crisis”.
“As a responsible energy company, NNPC Ltd continues to strengthen Nigeria’s energy sector while solidifying its legacy as a transformative force and a global game-changer,” Soneye said.
Recall that The NNPC stake in the Dangote refinery was reduced to 7.2 percent from the initial 20 percent, after it failed to pay the balance of a deal worth $2.7 billion, according to Dangote Refinery.
The NNPC paid $1 billion upfront in 2021, with a balance of $1.76 billion which was supposed to be paid for in crude supplies.
