The Nigerian National Petroleum Corporation (NNPC)’s joint venture with Chevron Nigeria Limited has entered into a $1.2 billion oil financing deal with United Bank for Africa (UBA) to finance the development of 36 new oil wells.

This deal is aimed at expanding the country’s oil production capacity, which is currently at 1.87 million bpd. According to UBA Group Chairman, Tony Elumelu, the oil financing deal with Nigeria was part of efforts to increase its African investment network as a strong pan-African brand.

“We are one bank, the United Bank for Africa. We are deeply committed to the markets in which we operate and to harnessing the potential represented by the wider African economy. Our intention is to be the leader in African financial services, and our recent transactions show this. We see clearly the potential of Africa,” he said.

Elumelu added that apart from Nigeria, the bank plans to provide another $315 million to Ghana for road projects, a $250 million crude pre-payment facility to be extended to the Democratic Republic of Congo-based Orion Oil, Euro 234 million oil and gas financing deal with Société Africaine de Raffinage (SAR) of Senegal as well as a $180 million funding to Delta Energy Zambia for the acquisition and supply of petroleum products to marketing companies in the country.

Anita Fatunji