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.
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