The Nigerian National Petroleum Company Limited (NNPC) has made notable progress in servicing its $3 billion forward‑sale loan from the African Export‑Import Bank. According to its 2024 financial statement, the company repaid crude oil worth N991 billion in 2024 under Project Gazelle, a forward crude‑oil supply agreement signed in 2023. The loan was secured to help the Federal Government stabilise Nigeria’s exchange rate and involves delivering 90,000 barrels of crude per day from Production Sharing Contract assets to back the funding facility.
By December 2023, a drawdown of $2.25 billion had been achieved, with principal repayment scheduled to begin in June 2024. The facility carries an interest rate of 3‑month LIBOR plus 6.5 percent, including a 6 percent margin and a 0.5 percent liquidity premium. As of December 2024, drawdowns on the facility reached N4.9 trillion of the total N5.1 trillion available, and N991 billion of crude oil had been lifted in repayment, leaving an outstanding balance of N3.8 trillion. Repayments were made between June and December 2024, although NNPC did not disclose the identity of the offtakers or the exact delivery volumes fulfilled in 2024.
Project Gazelle has become a key forward‑sale financing vehicle for NNPC, reflecting a broader trend of oil‑backed loans aimed at shoring up government revenues, refinancing legacy debts and meeting budgetary obligations. The company now carries crude‑backed loan obligations estimated at N8.07 trillion across multiple forward‑sale and project‑financing arrangements. NNPC’s major crude‑for‑loan facilities represent a combined commitment of 213,000 barrels per day, in addition to separate gas‑delivery obligations. This volume constitutes a sizeable share of Nigeria’s daily crude output, highlighting the long‑term implications for government revenue, export allocation and operational flexibility.
Nigeria’s gross profit from crude oil and gas sales fell by N824.66 billion in 2024 despite a rebound in oil production. The decline has been linked to opaque crude‑for‑cash agreements and undisclosed loan repayments that have tied up part of the country’s crude output. Experts are calling for greater transparency around these transactions, urging the Nigeria Extractive Industries Transparency Initiative to strengthen its audits and determine how much of the nation’s crude is being used for debt repayment or swap transactions.
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