The Nigerian National Petroleum Company Limited (NNPC) has secured a $5 billion corporate finance commitment from the African Export-Import Bank (Afreximbank) to fund major investments in Nigeria’s upstream sector.
The funding commitment was sequel to a meeting between Chairman of the Board of Directors and President of the Bank, Professor Benedict Oramah, and the NNPC team led by the Group Managing Director, Mallam Mele Kyari, on Wednesday in Cairo.
On the trip with Kyari were NNPC’s Chief Financial Officer, Umar Ajiya; Group Executive Director, Upstream, Adokiye Tombomieye; and Managing Director, NNPC Trading, Lawal Sade.
The Group General Manager, National Petroleum Investment Management Services (NAPIMS), Mr. Bala Wunti, also accompanied the NNPC helmsman to the event.
The funding arrangement, according to a statement yesterday, would be the first major deal by the national oil company since the enactment of the Petroleum Industry Act (PIA) and the incorporation of NNPC as a limited liability company under the Companies and Allied Matters Act (CAMA).
Under the contract, Afreximbank agreed to enter into a finance advisory and fundraising role to raise $5 billion to, “acquire, invest and operate energy producing assets in Nigeria as part of NNPC’s growth strategy following its incorporation as a limited liability company.”
Furthermore, the bank committed to underwrite $1 billion as part of forward sales based trade finance transaction.
