The Nigerian National Petroleum Corporation (NNPC) has entered a five-year agreement worth $1.04 billion with the African Export-Import Bank (Afreximbank), to further promote local exploration of oil and gas in Nigeria and Africa.

In a statement made available to Peoples Gazette on Wednesday, Afreximbank said the agreement was signed at the ongoing Intra-African Trade Fair in Durban, South Africa,  by Umor Ajia, NNPC Executive Director and Group Chief Executive Officer.

The bank explained that proceeds from the facility will boost tax revenue and foreign currency receipts adding that the deal will also create thousands of jobs in the oil and gas refining chain.

“The proceeds of the facility will boost tax revenues and foreign currency receipts and create thousands of jobs in the oil and gas refining value chain, all by more than US$2.4bn to the immediate benefit of the government thereby improving the balance of trade and Gross Domestic Product in Nigeria – Africa’s largest economy,” statement by the import-export bank said.

The deal is part of the bank’s effort to promote local content in Africa’s oil and gas and sector to generate foreign receivables into Africa.

The agreement which warrants NNPC to deliver 35,000 barrels of crude oil per day is made up of a Pre-Export/Shipment Finance Facility supported by a Forward Sale Agreement and Offtake Contracts with the NNPC acting as the Borrower and Seller.

Speaking on the development, Benedict Oramah, the President of Afreximbank, while lauding the development, lamented that having been left behind development-wise, Africa has to depend on fossil fuel for survival.

Mr Oramah downplayed the climate change agenda calling for an end to the emission of destructive greenhouse gasses saying that Africa is more of the victim of greenhouse gasses emission.

The Afreximbank boss argued that “Stopping development for parts of Africa today to achieve a clean environment for the whole world tomorrow is utterly foolhardy.