UBA Provides $200 Million for Nigeria’s Petroleum Industry

By Edwin Muhumuza

The United Bank for Africa Plc (UBA),Group Chairman, Tony O. Elumelu has challenged the private sector in Africa to unite and contribute meaningfully to their economies.

This is as UBA provided $200 million, approximately UGX 750 billion, to the Nigerian National Petroleum Corporation to support investment growth and liquidity requirements.

He made the remarks while the leading pan-African financial services group, acted as Facility Agent Bank for the Nigerian Commercial Banks in a consortium with other international banks in a $1.5 Billion Pre-Export Finance Facility for the Nigerian National Petroleum Corporation (NNPC) and its upstream subsidiary, the Nigerian Petroleum Development Company (NPDC).

This move follows a sharp drop in the price of oil and the ensuing hardship that followed the onset of the Covid-19 pandemic.

Elumelu said, ‘this facility is clear evidence of this – UBA is providing investment that will significantly improve Nigeria’s production capacity and in doing so also demonstrating the strength, depth, and sophistication of our commercial banking capability. I believe that together, working with governments, we can create more jobs and more wealth for people, not only in Nigeria, but across Africa’.

UBA has a strong track record in the resources sector across Africa, having facilitated oil prepayment deals with the NNPC, including its 2013 $100 million participation in the PXF Funding Limited transaction, and a further $60 million in the 2015 Phoenix Export Funding Limited transaction.

In Senegal, UBA was responsible for the EUR 240m Revolving Crude Oil Financing Facility for the Société Africaine de Raffinage and in Congo Brazzaville co-funded the $250m crude oil prepayment facility for Orion Oil Limited.

Other participants in the NNPC deal include Standard Chartered Bank, Afrexim Bank, Union Bank and two oil trading companies, Vitol and Matrix.

In Uganda, UBA is participating in the upstream, midstream and downstream of the oil and gas sector through financing and provision of financial services to players in each of these sectors.

“We are committed to ensuring that our corporate clients in the oil and gas sector of Uganda get access to the best financial services the market has got to offer.” said Mr. Joseph Balikuddembe, Executive Director/Head of Business- UBA Uganda.