Accugas Limited, a midstream gas subsidiary of Savannah Energy, has secured an expanded N773 billion local currency facility from a consortium of five Nigerian banks, a step aimed at mitigating its exposure to foreign exchange volatility.
The new agreement, expected to be signed in June 2025, will see Accugas fully refinance its remaining US dollar debt, marking a deliberate shift in its funding strategy, the company stated.
This follows an earlier N340 billion “Transitional Facility” secured by Accugas in January 2024, from the same group of five local banks.
According to the Accugas, the company planned to use the proceeds to repay the outstanding balance of approximately $212.3 million on its existing US dollar facility, with full repayment targeted for the second half of 2025.
The company stated: “N340 billion term facility signed by Accugas in January 2024 with a consortium of five Nigerian banks (the “Transitional Facility”).
“As at 31 December 2024, N332 billion of the Transitional Facility had been drawn down, with the resulting funds converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility, leaving a balance as at 31 December 2024 of approximately $212.3 million.”
Accugas focuses on the marketing, processing, distribution and sale of gas to the domestic Nigerian market. In 2022, the company processed and transported an average of 145 million standard cubic feet per day (MMscfpd) of gas through its pipeline network, with all gas sourced from Savannah’s 80 percent indirectly owned Uquo gas field.
Source: businessday