Court orders NNPC to disclose details of $3bn Afreximbank crude-for-cash loan

The Federal High Court in Abuja has directed the Nigerian National Petroleum Company (NNPC) Limited to release full details of the emergency $3 billion “crude-for-cash” financing arrangement secured from the African Export-Import Bank (Afreximbank) to civil society group, HEDA Resource Centre.

In its judgment in Suit No. FHC/ABJ/CS/1631/2023, filed by HEDA and argued by its counsel, Barrister Seidu Mohammed, Justice Emeka Nwite granted an order of mandamus compelling NNPC  to provide comprehensive information on the loan agreement.

The court specifically instructed NNPC  to disclose the expected benefits of the $3 billion crude-backed loan to both the national oil company and the Nigerian economy, as well as outline the possible economic consequences of the transaction, including its short-term and long-term implications.

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Justice Nwite also ordered the company to clarify key commercial terms of the deal, including the specific crude oil grades used in negotiating the loan, the exchange rate applied for crude repayment, and the quality of crude oil sold or pledged as collateral under the agreement.

In his ruling, the judge rejected arguments that releasing such information would harm third-party interests or undermine contractual negotiations.

“The Court does not agree that the disclosure of this simple information has the effect of harming any third-party interest in any way or affecting any contractual negotiation, particularly where there is nothing before the Court to demonstrate such harm,” the judge held.

He further noted that even if disclosure could potentially affect third-party interests, Section 15(4) of the Freedom of Information (FOI) Act empowers the court to balance such harm against the overriding public interest.

Given the scale of the transaction and its significant impact on the Nigerian economy, Justice Nwite said the court could not, in good conscience, deny the applicant’s request, especially considering the oil sector’s central role in Nigeria’s economic structure.

Reacting to the ruling, HEDA Resource Centre’s Chairman, Olanrewaju Suraju, hailed the judgment as a major victory for transparency and accountability in Nigeria’s oil and gas industry.

According to Suraju, the decision represents another milestone in HEDA’s advocacy for openness around NNPC ’s financial dealings and public sector borrowing, while also setting an important precedent for citizens’ access to information on government projects and loan agreements.

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He urged NNPC to comply fully and promptly with the court’s directive and called on the media, civil society organisations and other stakeholders to intensify demands for accountability, transparency and responsible financial management in public institutions.

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