Nigeria’s $5 bln oil-backed loan from Aramco delayed by oil price drop, say sources

Nigeria and Saudi Arabian oil company Aramco are struggling to reach an agreement on a record $5 billion oil-backed loan after a recent decline in crude prices sparked concern among banks that were expected to back the deal, four sources told Reuters.

Why it matters

The facility would be Nigeria’s largest oil-backed loan to date and Saudi Arabia’s first participation of this scale in the country. The slow progress in discussions reflects the strain of the recent oil price drop, caused largely by a shift in OPEC+ policy to regain market share rather than curtail supply.