The Federal Ministry of Finance has dismissed claims suggesting the collapse of a potential $5bn forward sale of crude oil involving the Nigerian National Petroleum Company Limited.
In a statement issued on Wednesday, the Ministry’s Director of Information and Public Relations, Mohammed Manga, responded to recent media reports that speculated the deal had failed due to concerns over declining global oil prices and Nigeria’s oil supply capacity.
The ministry clarified that, while market speculation is not uncommon during periods of economic reform and transactions, the claims regarding the collapse of the sale are unfounded.
It emphasised that no final decision has been made on the matter, and no official announcement had been issued about the sale.
“The Federal Government of Nigeria is aware of recent media reports concerning a potential forward sale of crude oil involving the Nigerian National Petroleum Company Limited,” the statement read.
“While market speculation is not uncommon in the context of ongoing economic reforms and transactions, no final decision has been announced by the Government, and commentary suggesting the collapse of any such initiative is unfounded.”
The proposed $5b deal would have been Nigeria’s largest oil-backed loan to date and involved Saudi Arabian oil giant Aramco.
Reports have suggested that the deal had been delayed, with growing concerns among potential banking partners due to falling global crude oil prices and Nigeria’s ability to meet supply commitments.
However, the ministry noted that the government’s focus is on deploying a range of innovative and fiscally responsible strategies to optimize Nigeria’s oil assets, improve external liquidity, and strengthen the country’s macroeconomic stability.
The statement also highlighted the government’s commitment to transparency and fiscal responsibility in its financing strategies.
These strategies are part of ongoing efforts to secure funding for national development and enhance Nigeria’s financial standing amid broader economic reforms.
The ministry noted, “The Government remains focused on deploying a range of innovative, transparent, and fiscally responsible financing strategies to optimise Nigeria’s oil assets, improve external liquidity, and strengthen macroeconomic stability.”
Earlier reports had indicated that Nigeria’s negotiations with Aramco for the $5bn oil-backed loan had slowed due to the decline in global crude oil prices.
The deal, aimed at boosting foreign exchange inflows and securing Nigeria’s largest oil-backed loan, has faced delays as lenders have become increasingly cautious amid concerns about Nigeria’s ability to meet its supply commitments.
The $5b loan would mark Aramco’s first major financing deal in Nigeria, but falling oil prices and the uncertainty surrounding Nigeria’s crude supply capacity have raised concerns about the viability of the deal.
The Nigerian government earlier received the final $1.05bn tranche of a $3.3bn oil-backed loan from Afreximbank in April 2024.
This loan, aimed at boosting the economy and improving dollar liquidity, will be repaid with crude oil priced at $65 per barrel, with 90,000 barrels per day allocated for repayment.
The statement reaffirmed the government’s commitment to transparent and responsible financial strategies aimed at improving Nigeria’s economic outlook.
The Punch
