By Emmanuel Nduka
The African Export-Import Bank (Afreximbank) and the Nigerian National Petroleum Corporation (NNPC) have penned a five-year agreement worth $1.04 billion to promote local exploration of Oil and Gas in Nigeria and Africa.
The agreement was signed at the ongoing Intra-African Trade Fair (IATF) in Durban, South Africa, by Umor Ajia, NNPC Executive Director and Group Chief Executive Officer.
Afreximbank explained that proceeds from the facility will boost tax revenue and foreign currency receipts adding that the deal will also create thousands of jobs in the oil and gas refining chain.
“The proceeds of the facility will boost tax revenues and foreign currency receipts and create thousands of jobs in the oil and gas refining value chain, all by more than US$2.4bn to the immediate benefit of the government thereby improving the balance of trade and Gross Domestic Product in Nigeria – Africa’s largest economy,” the bank said in statement.
According to the bank, the deal is part of efforts to promote local content in Africa’s Oil and Gas and sector to generate foreign receivables into Africa.
The agreement which warrants NNPC to deliver 35,000 barrels of crude oil per day is made up of a Pre-Export/Shipment Finance Facility supported by a Forward Sale Agreement and Offtake Contracts with the NNPC acting as the Borrower and Seller.
President of Afreximbank, Benedict Oramah while lauding the development, lamented that having been left behind development-wise, Africa has to depend on fossil fuel for survival.
Oramah highlighted the climate change agenda and called for an end to the emission of destructive greenhouse gasses saying that Africa is more of the victim of greenhouse gasses emission.
“Stopping development for parts of Africa today to achieve a clean environment for the whole world tomorrow is utterly foolhardy,” he said.