Oil firms received N130bn loans from banks in February-CBN

Operators in the downstream, natural gas and crude oil refining sectors of the Nigerian oil and gas industry borrowed N130 billion from Nigerian banks in February amid the significant rise in global crude oil prices.

A recent data released by the central bank of Nigeria, the debt owed by the oil and gas companies rose to N4.05trillion in February from N3.92 billion in January.

Operators in the upstream and services subsectors owed banks N1.26 trillion in February, down from N1.27 trillion a month earlier.

According to the sectoral analysis by the CBN of deposit money banks’ credit, the combined debt of N5.31tn owed by oil and gas operators as of February 2021 represents 25.29 per cent of the N21trillion loans advanced to the private sector by oil firms received N130bn loans from banks in February-CBN the banks.

Oil and gas firms received the biggest share of the credit from the deposit money banks to the private sector.