On Wednesday, the African Export-Import Bank (Afrexim) announced that it has loaned Nigerian state oil company Nigerian National Petroleum Corp. (NNPC) USD1.04 billion for petroleum exploration.
Under the agreement backed by oil cargoes, NNPC will deliver 35,000 bpd of crude oil.
According to Afrexim President, Benedict Oramah, the loan represented a balanced approach to development and climate. Africa contributes just 4% to the world's greenhouse gas emissions.
For the first time in two decades, Nigeria has overhauled the laws supporting its petroleum sector recently. The country wished its oil and gas industries would see prosperity.
It had been struggling to find attractive exploration funding as lenders shift away from fossil fuels due to climate concerns. In recent months, Nigeria has struggled to raise its oil output, partly on account of underinvestment.
President Muhammadu Buhari’s top priority includes developing its comparatively neglected gas sector.
