NNPC to use $1.5 billion prepayment deal to pay taxes owed by NPDC
The Nigerian National Petroleum Corporation (NNPC) is expected to use a large portion of the $1.5 billion oil prepayment deal with Vitol and Matrix Energy to pay taxes owed by its subsidiary, Nigerian Petroleum Development Company Ltd (NPDC).
The remainder will go towards operational expenses and capital expenditure, and could also fund an upgrade of the Port Harcourt refinery.
The Nigerian National Oil Enterprise (NNPC) is relied upon to utilize an enormous bit of the $1.5 billion oil prepayment manage Vitol and Network Vitality to pay charges owed by its auxiliary, Nigerian Oil Improvement Organization Ltd (NPDC).
The rest of go towards operational costs and capital use, and could likewise subsidize an overhaul of the Port Harcourt processing plant.
This is as indicated by a report from Reuters, which uncovered that Nigeria marked a $1.5 billion oil prepayment manage Vitol Gathering and Lattice Vitality. The arrangement, which is a first of its sort since the pandemic, was driven by Standard Contracted Bank.
EarnMore Solution comprehends that the arrangement was likewise sponsored by the African Fare Import Bank and Joined Bank for Africa. It ensures that both Network and Vitol will get 15,000 barrels of rough for every day for a long time beginning from one month from now.
Why it is important: The arrangement will give Nigeria the money it needs to deal with its spending issues. The nation, which was at that point desperate before the pandemic, endured colossal blows after worldwide oil costs definitely declined before. The Nigerian government has since made a few endeavors to raise capital through various methods, including nearby and remote obligation instruments.