NNPC’s Crude-Backed $1 Billion Loan Supported Dangote Refinery During Liquidity Challenges, Says Spokesman Soneye

The Nigerian National Petroleum Company Limited (NNPC) on Monday, highlighted the role its over $1 billion investment in the 650,000 barrels per day DangoteRefinery formed a critical pillar of support for the facility located in Lagos.

Speaking at an Energy Relations Stakeholder Engagement in Abuja, the Chief Corporate Communications Officer of the national oil firm, Olufemi Soneye, said that the crude oil-backed loan was even more important, given that at the time, Nigeria had serious liquidity challenges.

Stressing that the Mele Kyari-led NNPC had achieved ‘groundbreaking milestones’, redefining the trajectory of Nigeria’s oil and gas sector, Soneyeexplained that the restart of the Port Harcourt Refinery marked a significant turning point in Nigeria’s quest for energy self-sufficiency.

According to him, the development also reaffirmed the company’s commitment to revitalising the nation’s refining capacity.

In addition, the NNPC spokesman noted that the company NNPC has also championed the adoption of Compressed Natural Gas (CNG) as an alternative energy source, offering Nigerians a cleaner and more cost-effective solution amidst rising global energy costs.

“A strategic decision to secure a $1 billion loan backed by NNPC’s crude was instrumental in supporting the Dangote Refinery during liquidity challenges, paving the way for the establishment of Nigeria’s first private refinery. This initiative underscores NNPC’s dedication to fostering public-private partnerships that drive national development,” Soneye stated.

In a ‘historic’ achievement, NNPC under Kyari’s leadership, he said, also declared profit for the first time in decades, marking a significant financial turnaround.

Soneye added that the company has already exceeded its profit projections for 2024, describing it as a testament to the ‘transformative’ reforms Kyari has implemented.

“Additionally, Kyari facilitated the $3 billion Gazelle loan, a critical intervention that helped stabilise the federation during a challenging foreign exchange crisis. As a responsible energy company, NNPC continues to strengthen Nigeria’s energy sector while solidifying its legacy as a transformative force and a global game-changer,” he added.

Energy relations, he said, are the backbone of NNPC operations and strategic aspirations as an integrated energy company, especially in a rapidly evolving global energy landscape.

The NNPC spokesman stressed that this has fostered strong relationships with stakeholders across the value chain, indicating that it’s not just a priority but a necessity for achieving the company’s objectives and ensuring energy sufficiency.

He added that the company had been at the forefront of a transformative era in the global energy landscape, where collaboration, innovation, and sustainability are key to success.

“Energy relations are the backbone of NNPC Ltd’s operations and strategic aspirations as an integrated energy company. In a rapidly evolving global energy landscape, fostering strong relationships with stakeholders across the value chain is not just a priority but a necessity for achieving our objectives.

“As your trusted partner, NNPC remains committed to fostering meaningful relationships, driving excellence, and delivering value across the energy value chain. This meeting underscores our shared vision to ensure energy security, economic growth, and environmental stewardship for the benefit of all,” he added.

Head of Efficiency at the NNPC, Arinze Okafor, who took participants on the core business of the company, said that as a limited liability company, distinct from the corporation, in terms of governance, the NNPC has changed.

“So what that means is that like many years ago, where we could go back to the government, to say please, we need this amount, we need you to fund this, we need you to fund that. Today, we are going to be funded by our own balance sheet.

“So what that means is that we don’t have any other option than to make sure that our businesses that we do today, all our commitment is viable, it must have a commercial orientation, it must be able to deliver value at the end of the day,” he added.

Emmanuel Addeh

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