The Nigerian National Petroleum Company Limited is currently weighed down by crude-backed loan obligations estimated at N8.07tn, according to an analysis of its 2024 financial statements and capital-commitment disclosures.
The liabilities span several forward-sale deals and project-financing arrangements, all requiring significant crude oil and gas deliveries over multiple years. These commitments have become central to NNPCL’s funding model amid fiscal strain, unstable crude production, and dwindling upstream investments.
Many of the loan facilities were obtained to refinance old debts, repair refineries, support cash flow, and fulfil government revenue commitments.
Eagle Export Funding: Major Outstanding Exposure
One of the most significant obligations is linked to the Eagle Export Funding arrangement. Although the company stated in its 2024 report that “at least 1.8 million barrels” must be delivered per cycle, The PUNCH earlier disclosed that the financing is split across three loan tranches.
The first tranche, a $935m loan backed by 30,000 barrels per day, was fully repaid by September 2023. A second tranche of $635m was also settled within the same period. However, the $900m Project Eagle Export Funding Subsequent 2 Debt, secured in 2023 and backed by 21,000 barrels per day, remains outstanding.
Repayment is set to begin in June 2024, with maturity in 2028. As of December 2024, the outstanding balance stood at N1.1tn, making Eagle one of NNPCL’s largest forward-sale liabilities.
According to the financial statement:
“The Company had capital commitments of N1.1tn as at the year ended 31 December 2024 (31 December 2023: N1.2tn). This relates to the forward sale agreement with Eagle Export Funding Limited for the delivery of Crude Oil.”
It added that:
“Under the contract, Eagle Export Funding Limited will make an upfront payment to NEPL for crude in a Forward Sale Agreement… Based on the agreement, at least 1,800,000 barrels of Crude oil must be nominated and scheduled by NEPL… in every delivery period commencing on 28 August 2020.”
Gas-Supply Obligation to NLNG
Another major exposure is tied to the incremental gas-supply financing deal with Nigeria LNG Limited. NLNG had provided N772bn in advance funding, of which gas worth N535bn had been delivered and N312bn recovered by the end of 2024.
This leaves N460bn in pending deliveries, with an accrued financing charge of N12bn, bringing the total outstanding to N472bn.
Refinery-Rehabilitation Debts: Project Yield and Leopard
The Port Harcourt Refinery rehabilitation under Project Yield accounts for one of the biggest crude-secured commitments. The financing had an outstanding drawdown of N1.4tn as of December 2024.
The agreement is tied to refined-product-equivalent deliveries of 67,000 barrels per day, with repayments slated to begin in June 2025 after a 2.5-year moratorium.
The statement explained:
“This is a 7-year N1.5tn PxF loan obtained in October 2022… It is secured with a forward sale of refined product equivalent of 67kbpd of crude oil.”
Similarly, Project Leopard, a five-year forward-sale financing backed by 35,000 barrels per day, carried an outstanding loan balance of N1.3tn. Repayments are expected to begin in mid-2025 after a six-month moratorium.
Project Gazelle: NNPCL’s Largest Crude-Financing Exposure
The company’s most extensive exposure is linked to Project Gazelle, a major crude-for-cash facility used to pay advance taxes and royalties on Production Sharing Contract assets.
By December 2024, NNPCL had drawn N4.9tn out of the N5.1tn total facility. Crude deliveries worth N991bn had been made, leaving an outstanding N3.8tn. The agreement requires sustained deliveries of 90,000 barrels per day until full repayment.
Combined Commitments Equivalent to 213,000 Barrels Per Day
When combined, Eagle Export Funding (21,000 bpd), Project Yield (67,000 bpd), Project Leopard (35,000 bpd), and Project Gazelle (90,000 bpd) represent total crude commitments of 213,000 barrels per day, in addition to NLNG gas-delivery obligations.
The volume represents a significant share of Nigeria’s daily oil production and has long-term implications for export earnings, government revenue, and national budget performance.
Oil Earnings Decline Despite Higher Production
Industry analysts warn that NNPCL’s heavy debt obligations expose the company to production volatility and unstable earnings.
The PUNCH previously reported that Nigeria’s gross profit from crude oil and gas sales dropped by N824.66bn in 2024, falling from N1.90tn in 2023 to N1.08tn, a 43.32% decline. The figure was also 26.3% below the government’s target of N1.46tn.
Crude output averaged 1.43 million barrels per day in 2024, an improvement from 1.27 million bpd in 2023 but still below the budgeted 1.78 million bpd target.
Transparency Concerns and Expert Reactions
Questions over transparency persist, with multilateral bodies criticising NNPCL’s remittance practices.
The World Bank earlier stated that the company remitted only half of the gains from petrol subsidy removal:
“Despite the subsidy being fully removed in October 2024… it has been remitting only 50 per cent of these gains, using the rest to offset past arrears.”
Experts say Nigeria’s crude-trading landscape has grown opaque, involving swaps, forward sales, and off-budget arrangements.
Oil and gas expert Ademola Adigun said existing crude-secured loans reduce Nigeria’s revenue inflows because significant volumes are already tied to debt settlements.
He warned that several crude-backed deals were executed without adequate public disclosure.
Economist Dr Aliyu Ilias added that Nigeria’s crude-trading system has become “increasingly complex,” urging government intervention to understand the impact on fiscal performance.
Dr Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, recalled that many forward-sale deals were signed during periods of severe fiscal pressure:
“During the Emefiele years, Nigeria committed a lot of its crude up front,” he said.
He noted that transparency within NNPCL has improved under the current leadership, but emphasised the need for full public disclosure of all crude-swap and forward-sale deals.