Redefining Nigeria's Energy Future: NNPCL's innovative approach

The Nigerian National Petroleum Company Limited (NNPCL) has announced securing a $1 billion loan backed by crude oil to support the commencement of operations at the 650,000 barrels-per-day Dangote Petroleum Refinery. The announcement was made during the Energy Relations Stakeholders Engagement held in Abuja on Monday.

In addition to this milestone, NNPCL facilitated a $3 billion Gazelle loan as part of efforts to stabilize Nigeria's foreign exchange crisis, underscoring the company’s commitment to driving national economic growth and fostering strategic partnerships. Addressing stakeholders, NNPCL’s Chief Corporate Communications Officer, Mr. Olufemi Soneye, highlighted the company’s achievements under the leadership of Group Chief Executive Officer Mele Kyari.

In January 2024, NNPCL facilitated a syndicated $3.3 billion crude oil prepayment facility in collaboration with Afreximbank. This deal, the largest crude-backed facility in Nigeria and one of the largest syndicated debts raised in Africa, reflects NNPCL’s capacity to lead transformational financial interventions,” Soneye said.

Soneye emphasized the $1 billion crude-backed loan as a strategic move to support the Dangote Refinery during its liquidity challenges. This initiative, he noted, has paved the way for Nigeria’s first private refinery, reinforcing the company’s dedication to fostering public-private partnerships aimed at driving national development.

Soneye also shed light on NNPCL’s push for alternative energy solutions, particularly the adoption of Compressed Natural Gas (CNG) as a cleaner and more cost-effective energy source. This initiative aligns with global trends in sustainable energy while offering Nigerians relief amidst rising energy costs.

NNPCL made history by declaring profits for the first time in decades, marking a significant financial turnaround. Soneye revealed that the company has already exceeded its profit projections for 2024, a testament to the transformative reforms implemented under Kyari’s leadership. “This remarkable achievement reaffirms NNPCL’s position as a leading force in Nigeria’s energy sector and a global game-changer,” Soneye noted.

Soneye recognized the crucial role of stakeholders in shaping the future of energy in Nigeria and beyond, emphasizing the importance of collaboration, innovation, and sustainability. “Together, we stand at the forefront of a transformative era in the global energy landscape, where partnership and shared aspirations are key to achieving energy security, economic growth, and environmental stewardship,” he said.

He further noted that energy relations remain central to NNPCL’s operations and strategic goals as an integrated energy company. The company remains committed to fostering meaningful relationships, driving operational excellence, and delivering value across the energy value chain.

The stakeholders’ meeting reinforced the shared vision to ensure energy security and economic development while addressing global environmental challenges. Soneye concluded by pledging NNPCL’s continued dedication to strengthening Nigeria’s energy sector and solidifying its legacy as a transformative global player.