The Nigerian National Petroleum Company Limited (NNPCL) has repaid part of its $3bn crude-backed loan from the African Export-Import Bank using crude valued at ₦991bn in 2024, according to its latest financial statement. The repayment was tied to Project Gazelle, a forward crude supply agreement signed in 2023.
NNPCL’s Crude Deliveries Back Afreximbank Loan
In 2023, The PUNCH reported that NNPCL had secured a $3.3bn emergency crude oil repayment loan to support Nigeria’s foreign exchange reforms. During the signing in Cairo, the company said:
“The NNPC Ltd. and AFREXIM bank have jointly signed a commitment letter and Termsheet for an emergency $3bn crude oil repayment loan.”
The statement added:
“The signing will provide some immediate disbursement that will enable the NNPC Ltd. to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market.”
Under the agreement, NNPCL committed to deliver 90,000 barrels of crude per day from PSC assets. By December 2023, a drawdown of $2.25bn had been achieved, with principal repayment scheduled to begin in June 2024.
Fresh figures show that NNPCL had drawn ₦4.9tn out of ₦5.1tn, while crude valued at ₦991bn was lifted for repayment. The outstanding balance stood at ₦3.8tn at the end of 2024.
The report further stated:
“As at 31st December 2024, a drawdown of ₦4.9tn has been achieved… A total value of Crude Oil worth ₦991bn has been lifted with a balance of ₦3.8tn.”
NNPCL, however, did not disclose the identities of the crude offtakers or the specific volumes delivered in 2024.
213,000 Barrels Daily Tied to Loan Obligations
Project Gazelle has become one of NNPCL’s biggest forward-sale financing structures. With crude-backed liabilities estimated at ₦8.07tn, Nigeria is now committed to several major funding deals, including:
- Eagle Export Funding: 21,000 bpd
- Project Yield: 67,000 bpd
- Project Leopard: 35,000 bpd
- Project Gazelle: 90,000 bpd
Together, these represent 213,000 barrels per day, excluding gas-delivery commitments under the NLNG arrangement. Analysts warn that this volume forms a significant share of Nigeria’s daily crude output, reducing the country’s export flexibility.
Experts Warn of Declining Oil Earnings and Opaque Deals
Despite improved crude production, Nigeria’s gross profit from oil and gas sales plunged by ₦824.66bn in 2024, falling from ₦1.90tn in 2023 to ₦1.08tn, according to the Budget Implementation Report.
Energy expert Ademola Adigun linked the drop to opaque oil-backed loans and undisclosed repayment arrangements.
He said:
“Some of our crude is already tied up in loan agreements. The problem is that Nigeria doesn’t know the full details of these transactions because there’s little transparency around them.”
He also noted that crude-for-cash deals like Project Gazelle lacked proper public disclosure.
Adigun added:
“NEITI must strengthen its audits to determine how much of the country’s crude is being used for debt repayment or swap transactions.”