NNPC has signed a $1.04 billion facility loan with AFREXIM.

NNPC has signed a $1.04 billion facility loan with AFREXIM.

FastNews reports that the Nigerian National Petroleum Corporation (NNPC) has agreed to a $1.04 billion loan facility with the African Export-Import Bank (Afrexim) for petroleum exploration in the country.

This online information learned that the transaction, which consists of a Pre-Export/Shipment Finance Facility backed by a Forward Sale Agreement (FSA) and Offtake Contracts from the Nigerian National Petroleum Corporation acting as the Borrower and Seller, was completed on November 16 in Durban during the second intra-Africa trade fair, which began on November 15 and runs through November 21.

The agreement is backed by oil cargoes, and under it, NNPC will deliver 35,000 barrels per day (BPD) of crude oil, it said.

Speaking with President Afrexim, Mr. Benedict Oramah said the loan represented a balanced approach to development and climate, noting that Africa contributes just 4% of the world’s greenhouse gas emissions.

“Stopping development for parts of Africa today to achieve a clean environment for the whole world tomorrow is utterly foolhardy,” Oramah said.

Nigeria recently overhauled the laws underpinning its petroleum sector for the first time in two decades, which it hopes will spur the development of its oil and gas industries.

It has struggled to boost oil production in recent months, due in part to underinvestment while developing its comparatively neglected gas sector, a top priority of President Muhammadu Buhari.

Nigeria, along with other petroleum producers, has struggled to find attractive exploration funding as lenders shift away from fossil fuels due to climate concerns.

It also relies on petroleum for 90% of its foreign exchange and roughly half its national budget.