NNPC seeks funds, eyes upstream expansion

The Nigerian state oil firm is seeking to raise billions as it attempts to become a commercial entity and as IOCs look to divest assets in the country

Multilateral African finance institution Afreximbank has agreed to help Nigeria’s state-owned NNPC raise $5bn “to support our upstream businesses and facilitate energy supply and transition”, NNPC says. Afreximbank is likely to arrange the financing, rather than provide the bulk of the $5bn itself. There is a “strong possibility” that the capital required will come from sources, such as in the Middle East or Asia  “outside of the traditional Western lenders”, says Obo Idornigie, vice-president for sub-Saharan Africa at market intelligence firm Welligence Energy Analytics. “Domestic banks are maxed-out, [and] international banks are stepping back from the upstream oil sector,” says Gail Ander