NNPC is reportedly in negotiation with oil traders to source $1 billion in advance for crude oil payment to revamp its largest but ailing refinery in Port Harcourt.
The funding will help NNPC conduct a long-standing overhaul of the asset and scale down Nigeria’s heavy dependency on imported fuel.
Meaning the country will be taking its second oil-supported funding since the outbreak of the pandemic, which has complicated the process of attracting investors at a time fuel demand is taking a hit from lockdowns and renewable energy drawing more patronage from users than fuel from hydrocarbons.
“Afreximbank is looking into a facility for the refurbishment of the Port Harcourt Refinery. However, the borrower is yet to be determined,” said an NNPC spokesperson.
Repayment will come over a seven-year period by way of supplies of crude and products from the refinery when the rehabilitation is over, the sources said. The financing will be spearheaded by Afreximbank.Pls SUBSCRIBE below to our Youtube channel and mailing list to get fresh updates on money making and inspiring videos and articles.