NNPC Confirms $1bn Loan to Support Dangote Refinery

The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that the federal government, through the company, secured a $1bn loan to assist the Dangote Refinery during a period of financial challenges.

Olufemi Soneye, NNPC’s Head of Corporate Communications, shared this information during the Energy Relations Stakeholder Engagement in Abuja. He highlighted the company’s strategic interventions and its commitment to driving energy development under the leadership of Mallam Mele Kyari.

Speaking on the milestones achieved by the NNPCL, Soneye remarked, “Under the visionary leadership of Mele Kyari, NNPC Ltd has reached groundbreaking achievements, reshaping the future of Nigeria’s oil and gas industry.”

Among these accomplishments, the restart of the Port Harcourt Refinery stands out as a significant development, demonstrating NNPC’s dedication to restoring the nation’s refining capacity and achieving energy self-sufficiency.

Soneye also emphasized the company’s promotion of Compressed Natural Gas (CNG) as a cleaner and cost-effective energy source, providing Nigerians with alternatives amid rising global energy prices.

A key highlight was NNPCL’s role in supporting the Dangote Refinery through a $1bn loan backed by the company’s crude oil. This financial intervention enabled the establishment of Nigeria’s first private refinery, showcasing the company’s commitment to fostering public-private partnerships for national development.

“NNPC’s strategic decision to secure this loan during the refinery’s liquidity challenges demonstrates its dedication to initiatives that drive growth and enhance Nigeria’s energy sector,” Soneye stated.

Additionally, Soneye noted other transformative achievements under Kyari’s leadership. For the first time in decades, NNPCL declared a profit, marking a significant financial turnaround for the organization. The company has already exceeded its 2024 profit projections, reflecting the success of its reforms.

Another noteworthy intervention was the $3 billion Gazelle loan secured under Kyari’s guidance, which played a critical role in stabilizing the federation during a severe foreign exchange crisis.

These achievements, Soneye said, underscore NNPCL’s commitment to sustainable development and innovation in Nigeria’s energy sector, positioning the company as a leader in the nation’s economic transformation.