Afreximbank to Help Nigerian State Energy Firm Raise $5 Billion
The African Export-Import Bank will help Nigeria’s state-owned energy company raise $5 billion to support plans to buy and manage oil and gas assets.
The Cairo-based lender agreed to take on a “financial advisory and fundraising mandated lead arranger role” with Nigerian National Petroleum Co., according to a summary of a meeting Wednesday between Afreximbank President Benedict Oramah and NNPC Group Managing Director Mele Kyari.
Under legislation passed in August, NNPC has been re-incorporated as a commercially oriented limited liability company. Raising $5 billion will enable the new firm to acquire and operate producing oil and gas assets in Nigeria, the summary said. Afreximbank intends to underwrite $1 billion of the planned borrowing, it said.
International oil majors including Shell Plc are trying to find buyers for their remaining onshore and shallow water licenses in Africa’s largest crude producer so that they can focus on deep-water projects.