The Federal Government has opened up on the controversies surrounding the record $5 billion loan deal between Nigeria and Aramco, the Saudi Arabian state-owned oil company.
Ripples Nigeria reports that the record deal is being threatened by a drop in crude oil prices and declining production.
There is also growing concern regarding the reluctance among banks to underwrite the deal.
Nigerian National Petroleum Company Limited (NNPC Ltd) is also still servicing over 300,000 barrels per day (bpd) to repay several oil-backed loans, including a $3 billion loan from the African Export-Import Bank (Afreximbank) to support the naira and stabilise the foreign exchange market.
Reacting in a statement on Wednesday, Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance, said claims predicting the failure of such initiatives are unfounded.
Manga said market speculation is a common occurrence during periods of economic reforms and transactions.
The statement read: “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 (NNPC Ltd).”
“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.”
“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.”
