The Nigerian National Petroleum Corporation (NNPC) has signed a $1.04 billion facility with the African Export-Import Bank (Afrexim) for petroleum exploration, the bank said in a statement on Wednesday, November 17.
The agreement is backed by oil cargoes; and under it NNPC will deliver 35,000 barrels per day (BPD) of crude oil, it said.
Nigeria has along with other petroleum producers struggled to find attractive exploration funding; as lenders shift away from fossil fuels due to climate concerns.
Afrexim President Benedict Oramah said the loan with NNPC represented a balanced approach to development and climate; noting that Africa contributes just 4% to the world’s greenhouse gas emissions.
“Stopping development for parts of Africa today to achieve a clean environment for the whole world tomorrow is utterly foolhardy,” Oramah said.
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Nigeria recently overhauled the laws underpinning its petroleum sector for the first time in two decades, which it hopes will spur the development of its oil and gas industries.
It has struggled to boost oil production in recent months, due in part to underinvestment while developing its comparatively neglected gas sector is a top priority of President Muhammadu Buhari.
Nigeria relies on petroleum for 90% of its foreign exchange and roughly half its national budget.
Meanwhile, the Minister of Labour and Employment, Chris Ngige, has stated that education cannot be funded by the government alone.
Ngige made this call on Tuesday, November 16, during an interview with Channels TV, in response to questions about the looming industrial action by the Academic Staff Union of Universities (ASUU).
“The state of education here is not anything to cheer about, I agree. The standard has fallen, I agree. But education cannot be funded by Government alone,” the minister said.
“I know that because I schooled here in Nigeria. I did my primary education, secondary and university here; and I did my post-graduate outside the country. But I can tell you, in other climes education is not only done by the government”.