NNPCL to complete Warri refinery Q1 — Photo Source: The Guardian Nigeria

NNPCL to pay royalties, taxes from $3.3bn Afrexim loan

The Nigerian National Petroleum Company Limited (NNPCL) has announced plans to prepay future royalties and taxes to the Federal Government from the $3.3 billion financing deal it secured from the African Export-Import Bank (Afreximbank) in 2023.informationguidenigeria

The financing deal was aimed at supporting the Federal Government in stabilizing Nigeria’s exchange rate. The prepayment of future royalties and taxes is part of the measures outlined in the “Project Gazelle” initiative to optimize the benefits of the financing arrangement.informationguidenigeria

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“There has been a lot of interest from the public and stakeholders in recent weeks regarding the $3.3bn crude oil pre-payment loan, also known as Project Gazelle. This is a financing agreement secured by NNPC Limited to prepay future royalties and taxes to the Federal Government.”

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Commenting on the benchmark oil price of $65/barrel for the $3.3bn deal, the national oil firm said, “This provides a safety margin for price fluctuations in the future.JAMB Result

“NNPC Limited has reserved up to 90,000 barrels of crude for Project Gazelle, ensuring sufficient cash flow for repayment and other financial obligations.

“If oil prices rise, more money will come in from selling the 90,000 barrels, allowing for faster repayment. However, if oil prices fall, the repayment may be slower.JAMB Portal

“The quantity of crude earmarked (90,000 barrels) is sized to ensure enough cash is available for the repayment of the facility when it is due. This also ensures that NNPC Limited can meet other cash flow obligations, considering the expected future price of crude oil globally.”NYSC Portal