TUC Condemns NNPC Syndicated Loan

The President of the Trade Union Congress of Nigeria (TUC), Comrade Peter Esele has condemned the $1.5 billion syndicated loan obtained by Nigerian National Petroleum Corporation (NNPC).

Speaking to newsmen recently, Comrade Esele said such a loan should have been used to build a refinery rather using it to pay debts to international fuel traders as claimed by the NNPC.

He also warned that the loan should not be a federal government’s liability.

It was reported that the NNPC has obtained a $1.5 billion syndicated loan to enable it pay debts to international fuel traders.

The deal struck at the end of last year is seen as crucial to easing the burden on big commodity traders, who were facing the prospect of painful multi-million dollar write-off, oil trading sources.

The loan, according to the report, was provided by many Nigerian and International banks and brokered by Standard Chartered Bank. The debt, it was gathered, will be paid back over five and half years. The NNPC is believed to have put up 15,000 barrels per day of its oil production as collateral.

Standard Chartered declined requests for official comment, The Tide source reported.

A top official of the NNPC, who confirmed the transaction said the deal was yet to be finalized.

He said the transaction was still on-going and that the NNPC lawyers and those of the banks are looking at the terms of the deal to ensure that things are properly done. The source said he was not aware of any 150,000 barrels of crude oil per day collateral.