Nigeria: House of Representatives Order NNPC to 'Suspend' U.S.$1.5 Billion Loan

House of Representatives ordered the Nigerian National Petroleum Corporation (NNPC) to stop further action on the contentious $1.5 billion syndicated credit obtained by the state oil company to reportedly pay off accumulated debts for petrol already supplied by foreign importers.

The $1.5 billion loan freeze is expected to last until the outcome of the House-sanctioned probe into the covert loan.

The resolution was sequel to a motion sponsored by Ralph Nnanna Igbokwe (Imo/PDP), on the loan deal. Igbokwe said the NNPC had many questions to answer on the circumstances of the loan.

House Speaker, Aminu Waziri Tambuwal, detailed the standing Committees on Loans and Debt, Justice, Petroleum Resources Downstream and Upstream to investigate the loan deal and report to the House within 14 days.

Aside from the claim of not having details of what the loan was meant for, the House said it opposed the proposal on the ground that it would further plunge the nation into greater indebtedness.
It further expressed concern over decision of NNPC to swap the nation’s crude oil as collateral for the loan from certain banks.
After presentations by members with unanimous opposition to the proposed loan, Speaker Aminu Waziri Tambuwal directed Committees on Justice, Enviroment, Petroleum (Upstream) and Petroleum (Downstream) to investigate the matter and bring report before the House in two weeks.