US EditionSaudi $5 Billion Loan to Nigeria Hangs in the Balance After Crude Prices Plunge
- Nigeria and Saudi Arabia’s Aramco are struggling to finalize a $5 billion oil-backed loan proposed during President Bola Tinubu's November meeting in Riyadh.
- The challenge stems from Brent crude prices dropping nearly 20% since the start of the year, falling from more than $82 per barrel to approximately $65, which has made securing favorable loan terms and maintaining lender confidence more difficult.
- Nigeria’s 2024 budget assumes oil prices at $75 per barrel and production of 2 million barrels per day, yet April output was under 1.5 million bpd with 300,000 bpd allocated for debt repayment.
- Banks backing the proposed facility worry about crude delivery reliability and call for either more oil production or renegotiation, as the loan would be Nigeria’s largest oil-backed facility.
- The stalled $5 billion loan adds pressure on Nigeria’s budget and suggests possible downsizing of the deal amid ongoing efforts to boost oil output and foreign borrowing totaling $21.5 billion.
20 Articles
20 Articles
Nigeria's $5bn oil-backed loan from Aramco 'delayed by oil price drop'
Nigeria and Saudi Arabian oil company Aramco are struggling to reach an agreement on a record $5bn (R88.63bn) oil-backed loan after a recent decline in crude prices sparked concern among banks that were expected to back the deal, four sources told Reuters.
Saudi $5 Billion Loan to Nigeria Hangs in the Balance After Crude Prices Plunge
Falling oil prices have made negotiations between Aramco and Nigeria’s government more difficult over a record $5-billion loan backed by oil, which Saudi Arabia’s state oil giant has agreed to extend to Africa’s largest oil producer, sources told Reuters on Tuesday. Nigeria is using at least 300,000 barrels per day (bpd) to repay other oil-backed loans that its national oil firm NNPC has taken. A $5 billion oil-backed loan would be Nigeria’s lar…
Nigeria’s $5bn Oil-Backed Loan Talks with Aramco Stalled as Crude Prices Fall, Lenders Grow Cautious
Negotiations between Nigeria and Saudi oil giant Aramco over a proposed $5 billion oil-backed loan — expected to be the largest in Nigeria’s history — have slowed significantly, as falling global oil prices and concerns over Nigeria’s crude supply capacity make lenders increasingly hesitant to commit. The deal, initially advanced by President Bola Tinubu during […] The post Nigeria’s $5bn Oil-Backed Loan Talks with Aramco Stalled as Crude Prices…
Banks Hesitate as Nigeria, Aramco Struggle to Finalize $5bn Oil-Linked Loan
Negotiations between Nigeria and Saudi oil giant Aramco over a proposed $5 billion oil-backed loan are facing delays with banks expressing caution amid falling crude prices and concerns over Nigeria’s oil production capacity. The facility, if completed, would represent Nigeria’s largest oil-backed loan to date and mark Saudi Arabia’s most significant financial engagement with the […] The post Banks Hesitate as Nigeria, Aramco Struggle to Finaliz…
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