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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
NDLEA Intercepts Drugs Hidden In Clothes, Garri
Operatives of the National Drug Law Enforcement Agency (NDLEA) have intercepted consignments of cocaine and various opioids concealed in walls of cartons used to package cloths and other items going to the United Kingdom and Australia.
Spokesman of the agency, Femi Babafemi, in a statement shared on X yesterday confirmed the interdiction.
According to him, “The two seizures were recorded at a courier company in Lagos on Friday 15th May 2026 during examination of shipments going to the UK and Australia.
“A total of 170grams of cocaine sealed in cellophane parcels and buried in the walls of a carton of cloths heading to Australia were recovered.
“A wide range of opioids including: 200 ampoules of pentazocine injection; 1,100 capsules of tramadol and 100 ampoules of promethazine injection were recovered from another carton which has United Kingdom as its final destination”.
“In FCT Abuja, NDLEA operatives on Monday 11th May arrested a 29-year-old businessman Ogadi Peter who specializes in producing drug laced cakes and cookies for parties and social gatherings in the capital city.
“Following credible intelligence, he was traced to his home in Life Camp area of the FCT where he was nabbed while 800grams of skunk and 2.70kg drug laced cookies recovered from him”.
“In Delta state, NDLEA operatives on Sunday 10th May, raided Ejeonu village in Ukwuani local government area where they destroyed 27,500 kilograms of skunk on 11 hectares of farmland and recovered 22.9kg of same substance while a 52-year-old suspect Ifeanyichukwu Peter was arrested in a follow up operation at Obiaruku.
“A similar raid in Orogun village, Ughelli North LGA on Tuesday 12th May led to the destruction of 37,500 kilograms and recovery of 55.4kg of same psychoactive substance on 15 hectares of farm as well as the arrest of 30-year-old Godwin Vincent Osadera.
“This brings the total weight of skunk destroyed by NDLEA operatives supported by soldiers in the two operations to 65,000 kilograms”.
“In Kaduna State, 361kg of skunk was recovered during a raid operation at Dan Magaji area of Zaria town on Wednesday 13th May. and a suspect Husaini Suleiman, 42 ,was arrested.
“A large cache of military-grade ammunition was intercepted by NDLEA officers on patrol along Abuja-Kaduna highway, Kaduna on Tuesday 12th May.
“A suspect, 35-year-old Abdullahi Hassan was caught conveying the 1, 989 rounds of RLA 7.62mm concealed in fresh white cassava granules locally known as garri.
“Both the suspect and exhibit have since been transferred to another security agency for further investigation’.
Also, a total of 181kg skunk was recovered from a suspect Aliyu Sani when NDLEA operatives raided the Ogere area of Ogun state on Wednesday 13th May, while another suspect Sufiyanu Mohammed Misa, 27, was arrested with 105,850 pills of opioids including tramadol, diazepam and exol-5 along Zaki- Biam road Wukari LGA, Taraba state on Thursday 14th May.
In Oyo State, two suspects: Adeleke Olamide Aliyah, 20, and Aloba Abdulazeez, 25, were arrested on Thursday, 14th May at Challenge II, Saki town, in connection with the seizure of 99 litres of skuchies.
NDLEA also said a total of 1,388.4175 kilograms of skunk were destroyed on two farms on Friday, 15th May when NDLEA officers raided Ago forest, Orhionmwon LGA, Edo state.
A 25-litre jerry can of palm oil used to conceal 1.2kg pills of tramaking 225mg was recovered from Kofar Ruwa motor park in Kano on Monday, 11th May following credible intelligence while a suspect Aminu Isa, 35, was arrested at Sabuwar Sharada area of the state same day with 30.5kg skunk.
The War Against Drug Abuse (WADA) social advocacy activities by NDLEA Commands equally continued across the country in the past week including: WADA sensitization lecture delivered to students and staff of The Apostolic Church Model College, Ijokodo, Ibadan Oyo State; School of Health Technology, Lambata, Niger state; Yewa Junior High School, Agege, Lagos; Government Secondary School, Yardaje, Katsina; Igogo Commercial High School, Igogo Ekiti and Government Girls Secondary School, Magwan, Kano state; among others.
While commending the officers and men of DOGI, Delta, Kaduna, Oyo, Taraba, Kano, FCT and Edo Commands of the Agency for the arrests and seizures of the past week, Chairman/Chief Executive Officer of NDLEA, Brig. Gen. Mohamed Buba Marwa (Rtd) also praised their counterparts in all the commands across the country for pursuing a fair balance between their drug supply reduction and drug demand reduction efforts.
News
Five Die In Abuja Building Collapse
No fewer than five persons have been confirmed dead after a three-storey building under construction collapsed in the Durumi 3 area near Gudu Market in the Abuja Municipal Area Council of the Federal Capital Territory on Saturday morning.
Ten other persons were rescued alive from the rubble, according to the media aide to the Minister of the Federal Capital Territory, Lere Olayinka, who provided an update on the incident via his X handle on Saturday.
Olayinka further stated that the Mandate Secretary of the Health Services and Environment Secretariat of the Federal Capital Territory Administration, Dr Adedolapo Fasawe, who visited the site, disclosed that the Minister of the Federal Capital Territory, Nyesom Wike, had directed that “all casualties be given free medical treatment.”
According to him, emergency responders continued efforts to evacuate more victims believed to be trapped beneath the rubble.
Officials of the Federal Fire Service, health workers, security agencies and local volunteers were at the scene working to rescue victims.
Recall that in April, six persons were injured following a similar collapse of a two-storey building under construction in Jikwoyi within the AMAC area.
News
Odu Charges Newlyweds To Build Marriage On Love
Rivers State Deputy Governor, Prof. Ngozi Odu, has charged newlywed couples to build their marriages on the virtues of love as taught in the Word of God.
Prof. Odu gave the charge at the wedding ceremony of Amblessed Favour Sunny-Cookey and Samson Jesuganji at Lifegate Power Ministries, Dominion Cathedral, in Port Harcourt at the weekend.
This was contained in a statement by the Head of Press, Deputy Governor’s Office, Owupele Benebo last Saturday.
The statement identified the bride as the daughter of Pastor Sunny Cookey, the Founder and Presiding Pastor of Lifegate Ministries.
The deputy governor congratulated the couple on a new phase of life, and prayed for God’s blessings upon their union, noting that the couple were raised by godly parents and encouraging them to uphold the Christian values instilled in them.
Referring to the sermon delivered during the ceremony, Odu emphasized that the principles of love and submission remain fundamental to a successful marriage.
According to her, genuine love reflects the nature of God, stressing that love should remain the foundation of the couple’s relationship as they journey through life together.
She prayed for enduring peace, happiness, and progress in their home, expressing confidence that the marriage would continue to flourish under God’s guidance.
The deputy governor commended the families of the couple for their support and upbringing, while urging the newlyweds to always remember the significance of the day and the commitment they had made before God and witnesses.
In his sermon at the wedding, the Founder and Presiding Pastor of Salvation Ministries, Pastor David Ibiyeomie, stated that marriage did not originate from Western culture, traditions, or human ideas, but from God, whom he described as the “manufacturer” of marriage.
According to the cleric, couples seeking lasting and peaceful homes must rely on biblical principles rather than societal trends or assumptions.
He explained that many marital crises and rising divorce rates stem from ignorance and failure to apply scriptural teachings in family life.
Drawing from the biblical parable of building a house on a rock, Ibiyeomie said the Word of God remains the only solid foundation capable of sustaining marriages through challenges and difficult times.
He noted that marriage naturally comes with unexpected realities and pressures, stressing that religious ceremonies or cultural practices alone are not enough to sustain a home without proper understanding of God’s instructions.
The pastor further warned that ignorance of scripture remains one of the greatest weapons against believers, urging Christians to study and practice the Word of God rather than merely attending church services.
The ceremony had many ministers in attendance including Apostle Zilly Aggrey, Pastor George Izunwa, and Bishop Winston Iwo.
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