The Nigerian government has stated that no conclusive decision has been made regarding an oil-backed loan involving Nigeria and Saudi Aramco, the oil company owned by the Saudi state.
Nigeria and Aramco are reportedly encountering challenges in finalising the unprecedented $5 billion oil-backed loan, especially following the recent decline in crude oil prices, which has raised concerns among the banks expected to finance the agreement.
Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance, released a statement on Wednesday stating that assertions predicting the collapse of such initiatives lack a robust basis.
“The government of Nigeria is aware of recent media reports concerning a potential forward sale of crude oil involving the Nigerian National Petroleum Company Limited (NNPC Ltd),” the statement read.
Manga explained that market speculation is typical during economic reforms and transactions.
“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.” He added.
Manga stressed that the government is committed to implementing innovative, transparent, and fiscally responsible financing methods to optimise Nigeria’s oil assets, enhance external liquidity, and bolster macroeconomic stability.
The NNPC has procured multiple oil-backed loans, including a $3 billion loan from the African Export-Import Bank (Afreximbank) intended to support the naira and stabilise the foreign exchange (FX) market.
