The Nigerian National Petroleum Corporation (NNPC) is trying to get another loan backed by oil to help its finances and invest in its operations. The company’s chief executive shared this information with Reuters, highlighting the increasing pressure on the state-owned oil company, which is vital to the country’s economy.

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NNPC is looking to secure at least $2 billion, according to two insiders. The company’s debts to gasoline suppliers have doubled over the past four months, reaching $6 billion. The Nigerian government heavily relies on the oil that NNPC exports, as oil is a major source of foreign currency. However, issues like pipeline theft and insufficient investment over the years have reduced oil production. Additionally, the cost of gasoline subsidies has further drained the financial reserves. President Bola Tinubu is attempting to implement reforms in Nigeria, the largest oil producer in Africa. These reforms include removing fuel subsidies and allowing the naira to trade closer to its market value. However, these changes risk causing a significant increase in the cost of living for the population.

Mele Kyari, the head of NNPC, confirmed that the company is seeking a loan based on 30,000-35,000 barrels of daily oil production. He did not specify the exact amount needed but mentioned that the funds would support all of NNPC’s business activities, including increasing production.

Kyari emphasized that the company can handle its gasoline payments and that the loan is intended for regular business activities, not out of desperation. He explained that the loan would come from a group of key, long-standing business partners and expects the deal to be finalized within two months. NNPC already has a $3.3 billion oil-backed loan from Afreximbank, but rising fuel subsidy costs have worsened its cash flow problems, and the new loan would help address these issues.