The Nigerian National Petroleum Company Limited (NNPC) paid N686.94bn in interest on crude oil sale agreements in 2025, up from N253.14bn in 2024.

The increase represents a 171.4 per cent rise in interest payments, according to the company’s 2025 audited financial statements.

The agreements allow NNPC to obtain funds in advance in exchange for future crude oil supplies. However, the company’s outstanding obligations under these arrangements rose from N4.98tn in 2024 to N7.10tn at the end of 2025.

NNPC recorded N5.57tn in additional funds drawn under the agreements during the year, compared with N2.81tn in 2024. This was higher than the N2.76tn it repaid in principal in 2025.

Despite increasing its repayments from N942.08bn in 2024, the company’s outstanding liabilities grew by 42.7 per cent to N7.10tn.

The premium attached to the agreements also increased from N249.38bn to N666.66bn, representing a 167.3 per cent rise.

Project Leopard accounted for the largest share of the outstanding obligations, closing 2025 with a liability of N5.38tn, or about 75.7 per cent of the total. Project Panther had N929.88bn outstanding.

Meanwhile, liabilities linked to NLNG SPDC fell to N609.24bn from N637.88bn, while NLNG TEPNG obligations dropped to N184.82bn from N435.43bn. Project Yield was fully settled during the year.

The financial figures highlight the growing cost of using future crude oil supplies to secure funding, as NNPC’s interest payments and outstanding obligations increased in 2025.

NNPC Group Chief Executive Officer, Bashir Ojulari, also disclosed that the company stopped paying refinery rehabilitation contractors with crude oil in 2025.

Ojulari said the previous arrangement required NNPC to fund contractors and financing costs without ensuring that those involved had a stake in the refineries’ performance.

He said ending the practice helped reduce financial leakages and allowed more revenue to remain with the company.