The Nigerian National Petroleum Company Limited is facing heavy financial pressure as its crude-for-loan obligations have grown to an estimated N8.07tn, based on a review of its 2024 financial statements.
These debts come from multiple loan deals where NNPCL received upfront cash in exchange for future deliveries of crude oil or gas. Many of these agreements were used to refinance older debts, fund refinery rehabilitation, support government revenue, or keep the company’s operations running during periods of low production.
One major exposure is the Eagle Export Funding agreement. While earlier loan tranches of $935m and $635m have been repaid, a $900m facility taken in 2023 remains outstanding. The deal is backed by daily deliveries of 21,000 barrels of crude, with N1.1tn still unpaid by the end of 2024.
NNPCL also owes gas deliveries under a financing arrangement with Nigeria LNG Limited. NLNG provided N772bn upfront, but gas valued at N460bn was still outstanding by December 2024. With added charges, the total came to N472bn.
A significant portion of the debt is tied to refinery upgrades. Project Yield—the financing backing the Port Harcourt Refinery rehabilitation—had an outstanding N1.4tn. The agreement is secured by refined-product-equivalent volumes of 67,000 barrels per day, with repayments set to begin in June 2025.
Another arrangement, Project Leopard, had N1.3tn left to repay. The five-year loan requires NNPCL to deliver 35,000 barrels of crude daily once repayments start in mid-2025.
The largest obligation is Project Gazelle, created to cover advance tax and royalty payments. By the end of 2024, NNPCL had drawn N4.9tn from the facility, delivered crude worth N991bn, and still owed about N3.8tn. The deal compels the company to supply 90,000 barrels per day until the debt is cleared.
Altogether, these commitments require around 213,000 barrels of crude oil per day—representing a significant share of Nigeria’s total output. This means a large portion of the country’s crude is already tied to debt repayment rather than generating fresh revenue for the government.
Despite a slight improvement in oil production in 2024, Nigeria’s gross profit from crude and gas sales fell by 43 per cent to N1.08tn. Analysts say heavy reliance on crude-backed loans and limited transparency around the agreements have weakened government revenue.
Experts warn that undisclosed forward-sale and swap deals continue to weigh on national earnings, even as output increases. They also note that some of these commitments were signed when the government faced severe fiscal pressure, leaving long-term consequences for Nigeria’s oil income.
