Afreximbank to Provide $5billion for Energy Companies in Nigeria

  • Shell Plc and other international oil companies seek buyers for their remaining onshore and shallow water licenses.

The African Export-Import Bank is set to provide $5 billion to assist Nigerian energy companies in acquiring and managing oil and gas assets.

In a summary of the meeting held between the Afreximbank President, Benedict Oramah and the NNPC Group Managing Director, Mele Kyari, the Cairo-based lender agreed to take on a “financial advisory and fundraising mandated lead arranger role” with the Nigerian National Petroleum Co.

NNPC was re-incorporated as a commercially oriented limited liability company under legislation passed in August. According to the summary, the $5 billion raised will allow the new firm to acquire and operate producing oil and gas assets in Nigeria. Afreximbank intends to underwrite $1 billion of the planned borrowing.

Shell Plc and other international oil companies seek buyers for their remaining onshore and shallow water licenses in Africa’s largest crude producer to focus on deep-water projects.

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