NNPC settles part of $3 bn loan with N991bn worth of crude oil — Report
According to its 2024 financial report, NNPC Limited (NNPCL) has settled part of a $3 billion forward‑sale loan from Afreximbank by delivering crude oil valued at approximately N991 billion.
The repayment was executed under Project Gazelle — a crude‑oil backed financing agreement signed in 2023. Under this framework, NNPC committed to supplying 90,000 barrels per day from its Production Sharing Contract (PSC) assets to service the loan.
By December 2024, NNPC had drawn down N4.9 trillion of the N5.1 trillion facility. While the crude delivery cleared a portion of the debt, a remaining balance of N3.8 trillion still needs to be serviced.
The company’s reliance on crude deliveries to manage financing obligations reflects the growing trend of using oil as collateral for international loans.
Project Gazelle is part of a broader set of oil-backed financing deals, including Project Yield, Project Leopard, and Eagle Export Funding.
Combined, these arrangements require NNPC to deliver roughly 213,000 barrels per day in forward-sale commitments, highlighting the significant pressure on Nigeria’s oil output.
Industry analysts have expressed concerns over the implications of such deals. Heavy reliance on forward-sale crude could reduce the volume of oil available for export or domestic refining, potentially limiting future government revenue from the sector.
Observers argue that this could constrain fiscal flexibility and make it more challenging to respond to fluctuations in global oil prices.
As Nigeria continues to navigate financing pressures, the balance between servicing debt and maintaining oil revenue remains a critical policy challenge for the federal government.
Comments