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NNPC runs out of options, solicits stakeholders’ support for $1.5b loan

By on January 15, 2013
Andrew Yakubu, NNPC GMD

Andrew Yakubu, NNPC GMD

The Nigerian National Petroleum Corporation (NNPC) is running out of options to get the $1.5 billion loan to offset creditors’ debts.

After criticism from the media, debt management office and lawmakers, the NNPC has began to solicit for the support of stakeholders in its bid to secure the loan.

Responding to questions on the development, the Group Managing Director of the Corporation, Andrew Yakubu, said NNPC really need the money to upset its debts and clear its name to remain competitive and relevant in the market.

Yakubu spoke with reporters in Lagos yesterday, while inspecting the vandalised NNPC pipeline at Arepo. He said they were discussing with the creditors to schedule the payment.

Responding to the criticism from all quarters, Yakubu said they were working on many processes to gain public understanding on the matter.

He said, “We are discussing. We have quite a lot of indebtedness and this has affected our credit rating. We have had many meetings with the creditor. Arrangement have been put in place to resolve the issue through the current intervention we are about to embark upon. We are discussing with all stakeholders to let them understand that NNPC is taking the loan to solve its credit worthiness. We have been trying to be as open as possible on the issue.”

The Oil giant is working on securing the $1.5 billion syndicated loan to settle disturbing debts capable of hurting its image in the international scene.

The deal to secure the loan, which was said to be brokered by Standard Chartered Bank, was settled late last year.

The loan will be provided by Nigeria and international banks

2 Comments

  1. walerich

    January 16, 2013 at 2:33 am

    Why should NNPC be borrowing money for God sake ?

  2. Tenny

    January 17, 2013 at 12:07 am

    Which image is NNPC really trying so hard to save? This is such a shame!!!