The report lately that NNPC plans to borrow another $2 billion crude oil-backed loan is worrisome for its dire implication on the future of the country’s economy. Already, Nigeria is suffering the repercussions of oil-backed credit deals and other future contracts the NNPCL has signed. For instance, operators of local private refineries have complained of a shortage of feedstock, a challenge that has forced them into sourcing crude from other countries. Ghana, Guinea, South Sudan, the Republic of Congo, Angola and Zimbabwe are among African countries that have explored RBLs. For Nigeria, it would have made some difference if NNPCL, which has been struggling to meet its production quota, used the facility to augment production efficiency or exploration.

Source: The Guardian August 08, 2024 09:39 UTC