The dividend of the recent passage of Nigeria Petroleum Industrial Act has started yielding result after years of its contention at the country’s National Assembly. The Nigerian National Petroleum Company Ltd has announced the secured of a $5bn corporate finance commitment from the African Export Import Bank to fund major investments in Nation’s Upstream sector.
The funding commitment is a fallout of the meeting between the Chairman of the Board of Directors and President of the African Export-Import Bank (Afreximbank), Prof Benedict Oramah; and the NNPC Ltd team led by the Group Managing Director/Chief Executive Officer , Malam Mele Kyari, in Cairo, Egypt recently.
Malam Kyari who was accompanied on the trip by the Chief Financial Officer, Umar Ajiya; the Group Exceutive Director , Upstream, Engr. Adokiye Tombomieye; the Group General Manager, NAPIMS, Mr. Bala Wunti; the Managing Director, NNPC Trading, Mr Lawal Sade, dedicated the possibility of this milestone achievement to recent passage of the nation’s Petroleum Industrial Bill into law which in turn created an enabling environment for foreign stakeholder to key into its vast investment portfolio.
President Muhammadu Buhari has on 16th August, 2021 signed the long awaited PIA into law and this was followed by his assent to the establishment of NNPC LTD via its incorporation by the Corporate Affairs Commission on September 22 last year after it received application for its registration from the Federal Government.
The new legislation has provided business opportunities that will enable the NNPC earn more revenue for the country and attract foreign direct investment into the Nigerian energy sector
The NNPC’s $5bn corporate finance commitment from Afreximbank is seen by oil industry stakeholders as a dividend of the Petroleum Industry Act and the incorporation of the NNPC as a limited liability company. The recent funding will invariably increase stakeholders participation in the country upstream investment portfolio thereby cushioning the perceived bottlenecking and growth issues hindering offshore rig activities, and drilling campaigns in the oil industry as well Joint Venture financial delay.
