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Crude-For-Loans: NNPCL Votes 8m Barrels Monthly For $8.8bn Debt
The Nigerian National Petroleum Company Limited has pledged 272,500 barrels per day of crude oil through a series of crude-for-loan deals totalling $8.86bn.
By pledging 272,500 barrels daily, it means that about 8.17 million barrels of crude will be used for different loan deals by the national oil firm on a monthly basis.
This is according to an analysis of a report by the Nigeria Extractive Industries Transparency Initiative and the NNPC’s financial statements.
Under these deals, notable projects include Project Panther, Project Bison, Project Eagle Export Funding (Original, Subsequent, and Subsequent 2 Debts), Project Yield, and Project Gazelle.
According to The Tide’s source, NNPC has already fully repaid $2.61bn in loans, representing 29.4 per cent of the total credit facility, while $6.25bn or 70.6 per cent, remains outstanding.
Also, out of the $8.86bn credit facility, only about $6.97bn has been received from seven crude-for-loan deals.
One of the key projects, Project Panther, involves a joint venture between NNPC and Chevron Nigeria Limited, backed by international and local banks.
The project secured a $1.4bn loan facility, with 23,500bpd pledged to service the debt. Repayment is set to commence after a moratorium, with financing terms including an SOFR (Secured Overnight Financing Rate) plus 5.5 per cent margin and a liquidity premium.
Another significant deal is Project Bison, tied to NNPC’s attempt to acquire a 20 per cent equity stake in the Dangote refinery. However, the national oil company only acquired a 7.25 per cent stake.
The project secured a $1.04bn loan from Afrexim Bank, with 35,000 bpd pledged as collateral. NNPC fully repaid this loan in June 2024.
Project Eagle Export Funding comprises three separate loans aimed at meeting various financial obligations.
The original loan, secured in 2020 for $935m, was serviced with 30,000 bpd and was fully repaid by September 2023.
A subsequent loan of $635m was also fully repaid by the same period. The third tranche, known as Project Eagle Export Funding Subsequent 2 Debt, was secured in 2023 for $900m, with 21,000 bpd pledged. Repayment is scheduled to begin in June 2024, and the loan will mature in 2028.
Project Yield, designed to support the Port Harcourt Refining Company, involves a $950m loan, with 67,000 bpd pledged for repayment.
The repayment of the loan, secured in 2022, will begin in December. This seven-year facility is crucial to refurbishing the refinery and enhancing domestic refining capacity.
However, despite this crude-for-loan arrangement, The Tide reports that fuel production at the Port Harcourt refinery has yet to commence, despite multiple postponements as of August. Promises from the Federal Ministry of Petroleum Resources and NNPC have repeatedly fallen through.
More recently, there was the Project Gazelle deal, which aimed to stabilise Nigeria’s foreign exchange market.
In December 2023, NNPC secured a $3bn forward sale agreement, pledging 90,000bpd from Production Sharing Contract assets to cover future tax and royalty obligations.
As of the end of 2023, $2.25bn had been drawn from this facility, with repayments scheduled to begin by mid-2024.
These crude-for-loan deals come at a time when Nigeria is struggling to boost its oil production.
The NEITI 2022-2023 report revealed a significant decline in crude oil output, reaching the lowest levels in a decade. In 2022, the country produced 490.94 million barrels of crude oil, a steep drop from the peak of 798.54 million barrels in 2014.
Although production slightly improved to 537.57 million barrels in 2023, this still represents only 67.16 per cent of the country’s peak production capacity.
One of the major challenges facing the sector is production deferment. In 2023, Nigeria deferred 110.66 million barrels of crude oil, down from 153.44 million barrels in 2022.
The deferment was primarily due to unscheduled maintenance, repair issues, and oil theft.
Despite government efforts to curb these issues, including initiatives to reduce theft and sabotage, operational inefficiencies persist.
NEITI reported that oil theft and sabotage resulted in the loss of 5.25 million barrels in 2023, exacerbating production struggles.
The House of Representatives Special Joint Committee recently directed NNPC to halt further crude-for-loan agreements.
This directive follows reports that the company is planning to borrow an additional $2bn in oil-backed loans amid efforts to settle a $6bn backlog owed to international oil traders, particularly following the removal of fuel subsidy.
The Tide’s source reported that the NNPC was in talks for another oil-backed loan to boost its finances and allow investment in its business, according to the Group Chief Executive Officer, NNPC, Mele Kyari.
Kyari said the company wanted the new loan against 30,000-35,000 barrels per day of crude production, though he declined to say how much money it sought.
Nigeria’s government finances rely on oil the NNPC exports, which provides the bulk of crucial foreign exchange reserves. However, pipeline theft and years of underinvestment have sapped oil production in recent years, and the cost of fuel subsidies has further depleted cash reserves.
President Bola Tinubu has been struggling to implement reforms in Africa’s biggest oil exporter – including eliminating fuel subsidies and allowing the naira currency to trade close to market levels – without putting the country’s population at a cost-of-living breaking point.
It explained at the time that the oil company would use the loan to support the Federal Government in stabilising Nigeria’s exchange rate.
The facility, among other things, would help the Federal Government attend to some of its dollar obligations, assist the Central Bank of Nigeria in stabilising the foreign exchange market, and provide funding for NNPC.
Providing details about the deal in the document titled, “Everything you need to know about the NNPC Limited’s $3.3bn loan, also known as Project Gazelle,” NNPC said, “This is a financing agreement secured by NNPC Limited to prepay future royalties and taxes to the Federal Government.”
The company also stated that it adopted a lower price benchmark for the $3.3bn crude-for-cash loan to reduce the risk of default and ensure financial stability.
Giving details on the benchmark oil price, the company said the facility used a conservative crude price of $65/barrel to calculate the allocated crude to be produced and sold.
NNPC also said repayments were strategically planned and tied to future oil sales, with conservative pricing in oil sales contracts mitigating the risks associated with oil price volatility.
News
Disu Takes Over As New IGP …Declares Total War On Corruption, Impunity
President Bola Tinubu has charged the newly decorated acting Inspector-General of Police, Tunji Disu, to make the Nigeria Police Force better than he met it, as the country grapples with banditry, terrorism, and other criminal activities.
The President, who personally decorated Disu with his new rank at the State House, Abuja, said the appointment comes at “a defining moment for our nation’s security,” expressing confidence in the new police chief’s ability to restore public confidence in the Force.
“The commitment that I expect from you is for you to make it better than you met it. And I’m sure you can do it. Nigeria is challenged right now with banditry, terrorism and all sorts of criminal activities,” Tinubu stated during the decoration ceremony on Wednesday.
The President, who drew on his personal knowledge of Disu from his tenure as Lagos State Governor, said he believes in the dedication the new IGP exhibited while serving in Lagos.
“I know your record. I believe in the dedication that you’ve exhibited while you were in Lagos and I was the Governor of Lagos State.
“Now you assume this responsibility at a defining moment for our nation’s security,” the President said.
Tinubu outlined specific expectations for the new police chief, emphasising discipline, professionalism, and inter-agency collaboration.
“I expect you to strengthen the discipline, enhance inter-agency collaboration, and restore public confidence in the Nigeria Police.
“Lead firmly but fairly, demand professionalism at every level and ensure that safety of lives and property remains your highest priority,” he charged.
Acknowledging the magnitude of the task ahead, the President assured Disu of his full support.
“It is a daunting challenge. I know you can do it.
“You have my full support as you advance the security pillars of the Renewed Hope agenda.
“You are a straightforward individual, committed and respected. You have sufficient discipline,” Tinubu stated.
The President urged the new IGP to draw from the experience of his predecessor, Kayode Egbetokun, who attended the ceremony.
“You can draw from the experience of Kayode Egbetokun who had been there before you.
“You have been part of the thinking, and you’ve been part of the innovation.
“The challenge as you hold the baton of this leadership is the belief that you will excel and Nigeria will prevail,” he said.
Tge President expressed gratitude to the former IGP, Kayode Egbetokun for his service while linking his legacy to the success of his successor.
“To the outgoing Inspector-General of Police, I extend the gratitude of the entire country.
“Nigeria, we are a grateful nation to you for your dedication in service, expression of good leadership attributes within the Force.
“You have served with commitment and distinction, and Nigeria appreciates your contribution to maintaining law and order in our country,” the President said.
He added, “What you should look back and remember is this: you have not succeeded without a good successor.
“Therefore, the success of Tunji Disu as IGP, when confirmed, is part of your responsibility and the joy you should look forward to.”
Tinubu noted that Disu’s previous role as Principal Staff Officer to Egbetokun positioned him well for the new assignment.
“Having been part of your Principal Staff Officer, I have no doubt he understands the ins and outs of the operation.
“He will only improvise. He’s an operational person from what I know,” the President stated.
The decoration ceremony, which took place at 4:00 pm at the President’s office, had in attendance Chief of Staff to the President Femi Gbajabiamila, and other senior government officials.
President Tinubu personally pinned the new insignia on Disu’s uniform, marking the formal transfer of leadership of Africa’s largest police force.
In his response, Disu pledged to justify the confidence reposed in him, vowing to end impunity and enforce zero tolerance to corruption within the Force.
“The President mentioning a lot of activities about me, mentioning areas I’ve worked, mentioning successes I’ve recorded as a policeman, brought emotion to me, almost brought me to tears,” Disu told State House correspondents.
He added, “I will let them know that the era of impunity is over. I will ensure that I train them and encourage them to follow human rights. I will ensure that they know that I will try to follow a regime of zero tolerance to corruption.”
The new police chief emphasised that Nigerian citizens are the ultimate bosses of the police.
“One of the first lectures I’m going to have with my men, I’m going to talk to them, let them know that the citizen, the citizen of the country, are the boss. No police anywhere in the world can succeed without the cooperation of members of the public,” Disu stated.
Egbetokun, in his remarks, expressed confidence in his successor’s ability to surpass his achievements.
“I invested in likely successors in the Nigerian Police Force, and I’m happy that one of those that I’ve invested in has been found most suitable for the job. I have so much confidence that he would surpass what I have done,” Egbetokun stated.
The decoration came barely 24 hours after Egbetokun submitted his resignation letter on Tuesday, citing family issues that require his undivided attention.
The new Police Chief later proceeded to the Police Headquarters to assume duty following his decoration by President Tinubu earlier in the day.
He took his first salute as Inspector-General from members of the Quarter Guard and other officers at the Force Headquarters after returning from the Presidential Villa at about 4:15 p.m. He thereafter proceeded to the official handover ceremony with Egbetokun.
Disu outlined three priorities for his tenure: professionalism and modernisation; accountability and integrity; and community partnership.
However, multiple Presidency sources told our correspondent that Egbetokun was asked to step down during a meeting with the President on Monday evening at the Presidential Villa.
Disu’s appointment came just 48 days before his scheduled retirement on April 13, 2026, when he would have reached the mandatory retirement age of 60 years.
However, under the amended Police Act, which allows Inspectors-General of Police to serve a four-year tenure regardless of age, Disu may remain in office until 2030.
According to the Special Adviser to the President on Information and Strategy, Bayo Onanuga, President Tinubu will convene a meeting of the Nigeria Police Council shortly to formally consider Disu’s appointment as substantive Inspector-General of Police, after which his name will be transmitted to the Senate for confirmation.
Born on April 13, 1966, on Lagos Island, Lagos State, Disu joined the Nigeria Police Force on May 18, 1992, and has served for over three decades across multiple operational and leadership roles.
He rose to national prominence as Commander of the Rapid Response Squad in Lagos State, where he served for six years. Under his leadership, the unit won the Best Anti-Crime Squad award in West Africa in 2016.
On August 2, 2021, he was appointed to head the Intelligence Response Team, replacing the suspended Abba Kyari.
Before his elevation to IGP, Disu was Assistant Inspector-General of Police in charge of the Force Criminal Investigation Department Annex, Alagbon, Lagos. He was also a Commissioner of Police in Rivers State and the Federal Capital Territory, Abuja.
News
Amend Constitution To Accommodate State Police, Tinubu Tells Senators
President Bola Tinubu has appealed to the leadership of the 10th Senate to amend the constitution to provide a legal framework for the establishment of State Police to tackle insecurity nationwide.
President Tinubu made the appeal during an interfaith breakfast with senators at the Presidential Villa in Abuja, yesterday.
The president said that the creation of State Police has become urgent to address Nigeria’s evolving security challenges, strengthen grassroots policing, and enhance states’ capacity to respond swiftly to threats within their jurisdictions.
He noted that a decentralised policing structure would complement existing federal security architecture and promote intelligence-led, community-focused law enforcement.
“We are facing terrorism, banditry, and insurgency. But we will never fail to make a right response to this cause. What I will ask for tonight is for you (Senators) to start thinking how best to amend the constitution to incorporate the State Police for us to secure our country, take over our forests from marauders, and free our children from fear,” he said.
The president commended the cordial relationship between the Executive and the Senate, saying that unity is needed to defeat terrorism and banditry in the country.
“It is a good thing that we are working in harmony, we are looking forward to a country that evolves, a country that takes care of its citizens and protects all.
Tinubu thanked the Senate for its unflinching support towards achieving various economic reforms of his administration, especially the fuel subsidy removal and tax reform policy.
“I have a lot of credit for bold reforms. Without your collaboration and inspiration, those reforms would not be possible. We are reformists together. What we gave up and what we stopped is monumental corruption in the subsidy system. We don’t want to participate in monumental corruption and arbitrage foreign exchange.
You don’t have to chase me for dollars; you could see what Nigeria is today. You should be proud, and I am glad you are. What we are enjoying is a stable economy, and prosperity is beckoning us. We need to work hard, and this attendance means a lot to me,” the president said.
President of the Senate, Godswill Akpabio, commended the president for hosting the leadership of the Senate to the Interfaith breaking of fast.
He commended President Tinubu for providing the visionary leadership the nation needs at this critical time, stating that the administration’s bold reforms have now brought more revenue to governors at the sub-national level for the development of critical infrastructure.
The Senate President prayed for the administration, and for the nation’s peace and prosperity.
News
We’ve Made Significant Strides In Health Sector -Fubara
Rivers State Governor, Sir Siminalayi Fubara, has declared that his administration has made significant strides in the health sector in the past two and a half years.
Fubara, who stated this on Tuesday at the Government House, Port Harcourt, listed some of his notable achievements to include the revamping of health facilities, the establishment of the health insurance scheme and the employment of over 2,000 health workers to boost the manpower and efficiency of the sector.
The governor further disclosed that the administration has revived and expanded several abandoned health facilities, including the Zonal Hospitals in Bori, Omoku, Ahoada, and Degema.
He explained that the Ahoada Zonal Hospital is a 105-bed secondary facility that has capacity to cater for the health needs of the people in its catchment area.
In addition to the Zonal Hospitals, Fubara stated that his administration has also paid very close attention to the Primary Healthcare Centres across the state to ensure that citizens of Rivers State, especially those in the rural areas, have easy access to healthcare within their communities.
According to him, the administration approved the remodeling of 153 primary healthcare centers across the State to ensure their functionality.
“As an administration, we are very passionate about the health of every citizen and resident of Rivers State. When we realised that many people have been under stress as a result of economic hardship, we decided to introduce mental health services at the primary healthcare level. We are not just catering for those down with the common diseases such as malaria fever, we want to ensure that our people get the right attention to their mental health at the right time.
“At the tertiary level, we have also revamped the Intensive Care Unit of the Rivers State University Teaching Hospital and provided it with modern equipment, including monitors, ventilators, and scanners. Most of these innovations are massive and unprecedented,” he said.
On staff welfare, Fubara also disclosed that he approved the promotions for over 400 staff of the Rivers State University Teaching Hospital and recruited an additional 500 staff.
In the same vein, the governor said the number of scholarships for indigenes of Rivers State studying at the PAMO University of Medical Sciences has been increased from one hundred 100 to 150 under his watch.
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