NNPC Not Seeking $1.5Bn Loan, Petroleum Minister Debunks Reports

The Minister of Petroleum Resources, Diezani Allison-Madueke on Monday denied reports that the Nigeria National Petroleum Corporation (NNPC) planned to take a loan of $1.5 billion.

The Minister made the denial when she appeared before the House Joint Committee on Petroleum Resources (Upstream and Downstream), Aids, Loans and Debt Management and Justice of the House of Representatives probing the proposed loan.

Mrs Allison-Madueke and the Group Managing Director of the NNPC, Andrew Yakubu in separate statements before the House Joint Committee claimed that the money in question was not a loan but a forward sales agreement between the Corporation and its trading partners in lieu of the Corporation’s indebtedness to them.

Some of the lawmakers present, however, did not accept the position put forward by the minister, insisting that the explanation given by the executive showed that it was indeed a loan.

The Speaker, House of Representatives, Aminu Tambuwal said the proposed loan was not reflected in the 2013 budget that was presented to the National Assembly and that it was omitted from the Medium Term Expenditure Framework.

Mr. Tambuwal made the statement while declaring open the public hearing on the said loan by the House Joint Committee.

He added: “The public hearing was in line with the resolve of the Seventh House to deliver the dividends of democracy to Nigerians and also ensure the entrenchment of a policy that the citizenry could be proud of.”

While encouraging the Joint Investigative Committee to do a thorough work on the matter, the Speaker, who was represented by the Chief Whip of the House, Ishiaka Bawa, expressed optimism that the findings and recommendations of the panel would influence the direction and decisions of the House.