The Nigerian National Petroleum Company Limited (NNPC) has paid $2.44 billion to multinational oil companies, meeting its financial commitments. This payment is part of Nigeria’s joint projects with these international oil companies (IOCs) for oil exploration and production.
A report from the Nigerian Extractive Industries Transparency Initiative (NEITI) says that the money was given to different IOCs, like Chevron Nigeria Limited ($374.92 million), Total Exploration and Production Nigeria ($313.48 million), and ExxonMobil ($263.13 million).
Nigeria’s financial obligations to these companies have gone down by 37%, from $1.3 billion in 2022 to $815.6 million in 2023. This decrease happened because of repayment agreements.
Experts commend the government for working to pay off its cash call debts, saying that late payments have slowed down investments in Nigeria’s oil industry. Jide Pratt, the country manager of Trade Grid, pointed out, “NNPC’s potential will be limited until it is managed better.”
The NNPC has made big improvements in dealing with its cash call responsibilities, which helps create a more secure environment for investing in the oil sector.
