The federal government have said no final decision has been reached regarding an oil-backed loan between Nigeria and Aramco, the Saudi Arabian state-owned oil company.
Nigeria and Aramco are reportedly facing difficulties in finalising the record $5 billion oil-backed loan following the recent drop in crude prices, which has raised concerns among banks expected to support the deal.
In a statement on Wednesday by Mohammed Manga, the director of information and public relations at the Ministry of Finance, said claims predicting the failure of such initiatives lack a solid foundation.
Read also: Nigeria, Saudi Aramco struggle to finalise $5bn oil-backed loan on crude price slump
Manga said market speculation is a common occurrence during periods of economic reforms and transactions.
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“The Federal Government of Nigeria is aware of recent media reports concerning a potential forward sale of crude oil involving the Nigerian National Petroleum Company Limited (NNPC Ltd),” the statement reads.
“While market speculation is not uncommon in the context of ongoing economic reforms and transactions, no final decision has been announced by the Government, and commentary suggesting the collapse of any such initiative is unfounded.”
Read also: Aramco considering asset sales to raise cash; Is NNPC aware?
Manga said the government remains focused on deploying a range of innovative, transparent, and fiscally responsible financing strategies to optimise Nigeria’s oil assets, improve external liquidity, and strengthen macroeconomic stability.
The NNPC has secured several oil-backed loans, including a $3 billion loan from the African Export-Import Bank (Afreximbank) to support the naira and stabilise the foreign exchange (FX) market.
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