20 Apr Vandalism, others raise oil firms’ bank borrowing
The combined bank borrowing of oil firms operating in the downstream and upstream subsectors of the Nigerian oil and gas industry rose from N5.19tn in January 2021 to N5.68tn in December 2021, showing an increase of N490bn.
Operators in the downstream, natural gas and crude oil refining subsectors had borrowed N290bn from Nigerian banks in 2021 amid the significant rise in global crude oil prices.
The debt owed by the oil and gas companies rose to N4.21tn in December from N3.92tn in January 2021, according to the data obtained from the Central Bank of Nigeria.
However, operators in the upstream and services subsectors owed banks N1.47tn in December, an increase of N200bn from N1.27tn in January 2021.
The combined debt of N5.68tn owed by oil and gas operators (upstream and downstream) as of December 2021 represents 23.3 per cent of the N24.38tn loans advanced to the private sector by the nation’s banks, according to the sectoral f deposit money banks’ credit by the CBN.
Oil and gas firms received the biggest share of the deposit money banks’ credit disbursement to the private sector, according to the CBN data.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) had in March raised the alarm over the huge losses incurred by operators in the oil and gas industry as a result of vandalism and oil theft.
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