Stakeholders have continued to applaud the Nigerian Liquefied Natural Gas (NLNG) Limited over its decision to source about $7 billion from global financial markets for the construction of its Train 7.

The stakeholders, who spoke in separate interviews, noted that the move by NLNG will further improve foreign exchange liquidity in the local market and create more opportunities for Small Medium Enterprises (SMEs) in the economy through access to funds from local banks while not putting the nation’s foreign reserves under threat.

The stakeholders which include; the Managing Director of Financial Derivatives Limited, Mr. Bismarck Rewane and a Partner at Bloomfield Law Practice, Mr. Ayodele Oni equally admitted that local banks do not have the capacity to fund a project of that magnitude requiring about $7 billion when the capital base of each Nigerian bank is N25 billion, a figure that is not in any way closer to the threshold of the fund required by NLNG.

On July 11, in London, as part of the build-up towards the Final Investment Decision (FID), later this year, NLNG announced it was seeking about $7 billion for the sustainability of its operations and expansion project, which will increase its production capacity from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA.

Source: The Sun

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