BANKS DENY GRANTING NNPC $1.56BN LOAN FACILITY

The controversy surrounding the $1.56 billion loan said to have been obtained by the Nigerian National Petroleum Corporation (NNPC) from a consortium of Nigerian banks, yesterday, took a different turn as the banks denied granting the corporation any such facility.

The NNPC had earlier clarified that the said loan was not a loan but a 'procurement of $1.56 billion forward sales agreement to offset debt obligation.'

Making a presentation at the renewed hearing of the Joint Committee of the House of Representatives on the alleged transaction, Managing Director, Project and Export Finance of Standard Chartered Bank, Mr. Ade Adeola, who spoke on behalf of the Consortium of banks said that the said $1.56 billion facility 'is not a loan but forward sale of crude oil with advance deposits to be made to the Corporation on standard NNPC sale terms at ruling market prices.'

His position further corroborated the positions of the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke and the Group Managing Director of the NNPC, Engr. Andrew Yakubu, who had in separate presentations to the House Committee explained that the $1.56billion instrument was not a loan but a proposed forward sales agreement to enable the NNPC settle outstanding debt obligations.