NNPCL Secures $1bn Crude-Backed Loan to Bolster Dangote Refinery

The Nigerian National Petroleum Company Limited (NNPCL) has announced the securing of a $1bn loan backed by crude oil to support the operationalisation of the 650,000 barrels-per-day Dangote Petroleum Refinery, marking a significant milestone in the nation’s quest for energy self-sufficiency.

Speaking at the Energy Relations Stakeholders Engagement in Abuja on Monday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, underscored the company’s role in facilitating transformative partnerships and interventions to stabilise Nigeria’s energy and economic landscape.

The $1bn facility, Soneye explained, was pivotal in assisting the Dangote Refinery during liquidity challenges, ensuring the completion of Nigeria’s first privately-owned refinery. “This initiative underscores NNPC’s dedication to fostering public-private partnerships that drive national development,” he stated.

Soneye also highlighted the $3bn Gazelle loan, describing it as a crucial intervention to address Nigeria’s foreign exchange volatility. “Under the visionary leadership of Mele Kyari, NNPC Ltd has achieved groundbreaking milestones, redefining the trajectory of Nigeria’s oil and gas sector. The Gazelle loan was critical in stabilising the federation during a challenging foreign exchange crisis.”

NNPCL’s strategic efforts come against the backdrop of its January 2024 success in arranging a syndicated $3.3bn crude prepayment facility with Afreximbank—reported as the largest crude-backed deal in Nigeria’s history and one of the continent’s most significant syndicated loans.

The company’s ambitious reforms extend beyond crude oil-backed financing. Soneye pointed to the restart of the Port Harcourt Refining Company, describing it as “a significant turning point in Nigeria’s pursuit of energy self-sufficiency.” The revival of the refining complex, long a symbol of Nigeria’s struggles in the downstream oil sector, represents NNPCL’s renewed focus on enhancing domestic refining capacity.

Further, Soneye emphasised NNPCL’s leadership in promoting Compressed Natural Gas (CNG) as an alternative energy source. Amid rising global energy costs, he noted that CNG provides Nigerians with a cleaner, cost-effective solution that aligns with international sustainability goals.

In a historic milestone, NNPCL recently declared profit for the first time in decades—an achievement Soneye attributed to the company’s transformation under Kyari’s stewardship. He disclosed that the firm had already exceeded its profit projections for 2024, calling it a testament to “transformative reforms that are delivering real financial turnaround.”

Addressing stakeholders, Soneye underscored the importance of collaboration in navigating Nigeria’s energy future. “Together, we stand at the forefront of a transformative era in the global energy landscape, where collaboration, innovation, and sustainability are key to success,” he remarked.

He described energy relations as the backbone of NNPCL’s strategic ambitions, reaffirming the company’s resolve to deliver excellence and drive value across the energy value chain. “NNPCL remains committed to fostering meaningful relationships that ensure energy security, economic growth, and environmental stewardship for the benefit of all.”

The engagement highlighted NNPCL’s position as a linchpin in Nigeria’s energy sector, blending financial innovation with strategic partnerships to address immediate challenges and build a sustainable future. As Nigeria grapples with foreign exchange instability and rising energy demands, NNPCL’s actions signal a renewed determination to transform the nation into a global energy powerhouse.