The report indicates that the NNPC is expected to announce shortly that it has secured a new syndicated loan backed by crude oil.
Referred to as Project Leopard, this initiative is designed to help the company raise a total of $2 billion, with the initial $1 billion tranche already completed. NNPC's Group Chief Executive Officer, Mele Kyari, and his team are currently finalizing arrangements for the second tranche, which will also amount to $1 billion.
The loan plans, initially disclosed by Reuters in July without specifying the amount, are intended to restore the NNPC’s financial health and facilitate investments in new oil installations to enhance crude oil production, according to Kyari.
“We are fully capable of managing our gasoline payments. This funding is for routine business operations and not a sign of desperation. It will involve syndication with key partners who have a longstanding relationship with our company to provide the necessary capital,” Kyari mentioned to Reuters in July, expressing optimism about concluding the deal within two months from that time.
Attempts to obtain an updated comment from the national oil company on Thursday evening were unsuccessful, as a text message to an NNPC spokesperson went unanswered.
At the time the information was first released, Olufemi Soneye, the Chief Corporate Communications Officer of NNPC, stated that the company would make an official announcement when it was prepared to move forward with the deal. He emphasized that while the company would need funding for its capital-intensive projects, it would adhere to proper procedures in announcing any financing arrangements.
“When we are ready to proceed with any of the initiatives mentioned, we will make an official announcement. As a global energy company, we need funding to undertake aggressive drilling campaigns. Naturally, we will require financing for our high capital expenditure projects.
“Our financing arrangements are typically announced through our financial advisers and arrangers. When the time comes, new financing transactions will be announced to the market,” Soneye stated in July.
Nigeria, where oil exports represent a significant portion of the national income, has been actively seeking to enhance its revenue and foreign currency reserves. In July, the federal government aimed to elevate oil production to 2 million barrels per day (bpd) by year-end. By November, production had reached 1.7 million bpd.
Reports indicate that Nigeria’s Oando group, led by Adewale Tinubu, along with the Abu Dhabi National Oil Company (ADNOC), are among the entities providing financing for the loan.
However, both Oando and ADNOC refrained from commenting when approached. The NNPC stated to Africa Intelligence that “it is too early to discuss or reveal details about any deal that has not yet been finalized.”
Several months ago, Oando extended a $500 million loan to the NNPC as part of another syndicated loan initiative known as Project Gazelle. Swiss firm Gunvor International and Nigeria’s Sahara Energy Resources also participated in the $3.175 billion operation, which was facilitated by Afreximbank.
When asked if Afreximbank was involved in the new loan initiative, the pan-African bank, led by Nigerian national Prof. Benedict Oramah, chose not to respond.
ADNOC had considered joining Project Gazelle but ultimately decided against it, according to the report. The loan's interest rate of 11.58 percent was viewed as particularly high, leading former Vice President Atiku Abubakar to label the operation as “shady.”
On December 2, 2024, Nigeria successfully raised $1.5 billion through its first Eurobond issuance in two years, with a repayment period of 10 years and an interest rate of 10.375 percent. It is anticipated that the NNPC will secure a more advantageous interest rate in this instance. Kyari estimated in July that the loan will be supported by the sale of 30,000 to 35,000 barrels of crude oil each day.