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NNPC serviced $3bn loan with N991bn crude – Report

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The Nigerian National Petroleum Company Limited has serviced part of its $3bn forward-sale loan from the African Export-Import Bank with crude oil worth N991bn in 2024, according to its 2024 financial statement report. The repayment was tied to Project Gazelle, a forward crude oil supply agreement signed in 2023.

On August 17, 2023, The PUNCH reported that the NNPC announced it had secured a $3.3bn emergency loan to repay crude oil obligations from Afreximbank. It explained that the loan would be used by the oil company to support the Federal Government in stabilising Nigeria’s exchange rate.

“The NNPC Ltd. and AFREXIM bank have jointly signed a commitment letter and Termsheet for an emergency $3bn crude oil repayment loan,” NNPC said in a statement.

“The signing, which took place today at the bank’s headquarters in Cairo, Egypt, 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,” it added.

Under the deal, NNPC committed to deliver 90,000 barrels of crude oil per day from Production Sharing Contract assets to back a funding facility. According to the 2023 financial statement, a drawdown of $2.25bn had already been achieved by 31st December 2023, with principal repayment scheduled to begin in June 2024.

The funding carried an interest rate of 3-month LIBOR plus 6.5 per cent, with a 6 per cent margin and 0.5 per cent liquidity premium.

According to the 2024 financial statement, the drawdown on the facility had reached N4.9tn out of a total available N5.1tn, while N991bn worth of crude oil had been lifted in repayment, leaving an outstanding balance of N3.8tn at the end of 2024.

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The report read, “In December 2023, NNPC Limited entered into a forward sale agreement with Project Gazelle Funding Limited to supply 90,000 bbl. of crude oil per day from Production Sharing Contract Assets for the settlement of a 5-year N2.7tn funding.

“The funding was utilised by the company to finance an advance payment of future taxes and royalty obligations due to the federation on PSC assets managed by the Company on behalf of the Federation.

“As at 31st December 2024, a drawdown of N4.9tn has been achieved from the initial facility of N5.1tn. The interest rate for the facility is 3-month SOFA plus 6.5 per cent while the margin and Liquidity Premium of 0.5 per cent respectively. A total value of Crude Oil worth N991bn has been lifted with a balance of N3.8tn as at 31st December 2024.”

The repayment was made between June and December 2024. However, NNPC did not disclose the identity of the offtakers or exact delivery volumes fulfilled in 2024.

The Project Gazelle arrangement has become one of NNPC’s most significant forward-sale financing vehicles, following a trend of oil-backed loans designed to shore up government revenues, refinance legacy debts, and meet budgetary obligations amid limited fiscal buffers.

The PUNCH earlier reported that the NNPC Ltd is burdened with crude-backed loan obligations estimated at N8.07tn.

The liabilities stretch across multiple forward-sale and project-financing arrangements that are expected to be serviced through substantial crude oil and gas deliveries. The commitments have become a major pillar of NNPCL’s funding structure following years of fiscal pressure, volatile crude production, and declining upstream investment.

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Several of the facilities were used to refinance older debts, fund refinery rehabilitation, support cash flow, and meet government revenue obligations.

When assessed together, the company’s major crude-for-loan facilities—Eagle Export Funding (21,000 bpd), Project Yield (67,000 bpd), Project Leopard (35,000 bpd), and Project Gazelle (90,000 bpd)—represent a combined commitment of 213,000 barrels per day, in addition to separate gas-delivery obligations under the NLNG arrangement.

The volume equates to a sizeable share of Nigeria’s daily crude output, underscoring the long-term implications of these arrangements for government revenue, export allocation, and operational flexibility.

The PUNCH also reported that Nigeria’s gross profit from crude oil and gas sales plunged by N824.66bn in 2024 despite a rebound in oil production, according to figures from the Budget Implementation Report for the fourth quarter of 2024 released by the Budget Office of the Federation.

Data from the report revealed that gross profit from crude and gas sales fell to N1.08tn during the year, from N1.90tn in 2023, representing a 43.32 per cent decline.

The Chief Executive Officer of AHA Strategies and oil and gas expert, Mr Ademola Adigun, earlier linked Nigeria’s declining oil earnings to opaque crude-for-cash agreements and undisclosed loan repayments that have tied up part of the country’s crude output.

He said some of the government’s oil barrels were already committed to debt settlements and forward-sale contracts, reducing the actual volume that brought fresh revenue into the Federation Account.

Adigun 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.”

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He explained that several crude-backed projects, such as Project Gazelle, were carried out without proper public disclosure or parliamentary scrutiny.

He added that the Nigeria Extractive Industries Transparency Initiative should strengthen its audits to determine how much of the country’s crude is being used for debt repayment or swap transactions.

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Remi Tinubu defends her akara/roasted corn business idea, says petty traders given N50, 000 empowerment appreciate it

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The First Lady of Nigeria, Senator Oluremi Tinubu, has defended her recent remarks urging low-income citizens to engage in micro-businesses, such as frying akara, roasting corn, or producing kuli-kuli.

The initial comments, delivered to journalists in Abuja on Thursday, June 25, sparked widespread public backlash. Critics argued that promoting low-yield, traditional petty trading is regressive at a time when global economies are transitioning toward technology-driven industries.

Addressing the controversy during an official event in Jigawa State on Monday, June 29, the First Lady dismissed the criticisms, emphasizing that the federal government remains committed to supporting grassroots commerce. She noted that national empowerment initiatives regularly target small-scale vendors, including those selling tomatoes, pepper, vegetables, and roasted plantains.

To support her stance, Tinubu disclosed that the government has distributed ₦100 million in financial grants so far. Under this scheme, approximately 2,000 petty traders have received ₦50,000 each to recapitalize and expand their businesses.

“ I’ve told Her Excellency that we’ve already given, donated about 100 million to her to use to empower 2,000 petty traders. And I know they’ve been talking that I said akara. It’s not only akara, we also have tomato sellers. We have boole, and those also selling pepper, selling vegetables for us in the market.

We will continue to empower them and add to their resources so that their trade can really be sustainable. So that is what we are doing,” she said.

She maintained that the criticism trailing her earlier remarks would not deter the government from its empowerment programmes.

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“I know all those people who are affected; they do appreciate it. And we are not intimidated by all those wrong reports. But we are forging ahead and making sure that our people, you know, are well cared for” she said

Mrs Tinubu prayed that Nigerian youths explore other opportunities around them to empower themselves economically.

“Nigeria is a really blessed country. I’ve been travelling, and I pray that our young people will see the resources we have in this nation. We have not even gone to explore yet because we are thinking it’s oil. But there are so many things” she said

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‘It’s not only akara,’ Remi Tinubu defends comments, says FG also supports tomato, pepper sellers

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The First Lady, Senator Oluremi Tinubu, has defended her earlier comments on small-scale businesses, saying the Federal Government’s empowerment programmes extend beyond akara sellers to include traders in tomatoes, pepper, vegetables and roasted plantain.

Tinubu spoke on Monday during the inauguration of the newly constructed Abubakar Maje Haruna Hall at the Emir of Hadejia’s Palace in Jigawa State, according to a video aired by TVC News.

Her remarks come days after comments she made about akara, roasted corn and kuli-kuli businesses sparked widespread backlash on social media, with many Nigerians accusing her of trivialising the country’s economic hardship.

Addressing the criticism directly, the First Lady said the Federal Government had donated N100m to the Jigawa State Government to empower 2,000 petty traders in the state.

“Because of the atmosphere, what is going on, I’ve told Her Excellency that we’ve already given, donated about 100 million to her to use to empower 2,000 petty traders.

“And I know they’ve been talking that I said akara. It’s not only akara, we also have tomato sellers. We have boole, and those also selling pepper, selling vegetables for us in the market.

“We will continue to empower them and add to their resources so that their trade can really be sustainable. So that is what we are doing,” she said.

Tinubu said the beneficiaries would each receive N50,000 to recapitalise their businesses.

“We continue to carry the capacity. We have the amount of 2,000 women who are already in small businesses. They will recapitalise their businesses with the N50,000 each. We’ve already given the N100 million,” she added.

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She maintained that the criticism trailing her earlier remarks would not deter the government from its empowerment programmes.

“I know all those people who are affected, they do appreciate it. And we are not intimidated by all those wrong reports. But we are forging ahead and making sure that our people, you know, are well cared for,” Mrs Tinubu said.

The First Lady also spoke about Nigeria’s untapped resources, citing an orange orchard she visited in Benue State, and expressed hope that young Nigerians would explore opportunities beyond oil.

“Nigeria is a really blessed country. I’ve been travelling, and I pray that our young people will see the resources we have in this nation. We have not even gone to explore yet because we are thinking it’s oil. But there are so many things,” she said.

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Local refineries import 2m barrels Libyan crude oil amid domestic shortage

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Nigeria imported an average of two million barrels of crude oil from Libya, the first of such imports from the North African country ever. Dangote Petroleum Refinery is the major importer of crude into Nigeria.

The import comes amid the high export of crude locally produced in Nigeria to other countries, leaving local refineries with no option but to seek feedstock elsewhere.

Libya Review, a local media outlet in the country, reports that Libya’s crude oil exports reached a new milestone after Nigeria imported Libyan oil for the first time on record, highlighting the growing role of Libyan supplies in regional energy markets amid ongoing disruptions to global trade flows.

According to data published by the Energy Research Unit, Nigeria imported around 64,500 barrels per day of Libyan crude in May 2026, equivalent to approximately two million barrels for the month.  “The shipment marks the first recorded Nigerian import of Libyan crude in available historical data dating back to 2013,” the report said.

Recall that there were reports in 2024 that the Dangote Petroleum Refinery was in talks with Libya for the purchase of crude oil. However, the Libyan oil corporation denied negotiating or entering into talks regarding the crude oil supply to any Nigerian refinery.

The statement, written in Arabic in 2024, translates, “The National Oil Corporation denies that it has negotiated or entered into any talks regarding the supply of crude oil to an oil refinery in Nigeria.”

The National Oil Corporation also confirmed then that it was committed to its contracts with its international partners and committed to the legal mechanism for selling Libyan oil raw materials and that it did not work with an immediate sales mechanism.

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“In addition, the process of determining raw material prices is carried out through a committee of experts and is approved by the corporation and the Ministry of Oil and Gas,” Libya said in July 2024.

But it appears the agreement has finally been concluded with the supply of 2 million barrels to the Dangote refinery in just one month. By ramping up capacity to 700,000 barrels per day and eyeing 1.4 million barrels per day in 2028, the Dangote refinery is increasingly in need of feedstock from multiple sources.

In 2026, the refinery has already imported cargoes of Angola’s Cabinda and Saxi Batuque crudes, Ghana’s Jubilee crude and, for the first time, Libyan and Guyanese supplies, all of the light sweet or medium sweet variety, according to S&P Global Energy data.

In Nigeria, local refiners have consistently complained of insufficient crude supply due to higher exports. Nigeria exported an estimated 148.9 million barrels of crude oil valued at about N20.22tn in the first five months of 2026, showcasing the scale of the country’s oil export despite persistent concerns over the domestic crude supply obligation.

The crude barrels were exported by both international and indigenous oil companies, including the Nigerian National Petroleum Company Limited.

The figures obtained from the Central Bank of Nigeria indicate that the total volume of crude oil produced by the country during the five-month review period in 2026 was 216.85 million barrels, out of which about 149 million barrels were exported.

Overall, Nigeria exported about 68.7 per cent of the crude oil it produced during the five months, leaving roughly 67.95 million barrels available for domestic refining, storage, operational use, and inventory adjustments.

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The import of crude from Libya is coming as international oil markets continue to adjust to supply disruptions linked to the US-Iran conflict and the resulting challenges affecting energy shipments through the Gulf region. These conditions, it was learnt, have allowed Libyan crude to expand its presence in both African and European markets.

Libya is also strengthening energy ties with neighbouring countries while also competing with Nigeria for major oil investors.

It was gathered that Egypt imported approximately 33,000 barrels per day of Libyan crude in April 2026, following imports of 57,000 barrels per day in February. The purchases marked Egypt’s first imports of Libyan crude since 2019 and form part of efforts to secure alternative supplies following agreements to import more than one million barrels per month from Libya.

Tunisia also increased purchases of Libyan crude during 2026, importing around 19,000 barrels per day in March and 10,000 barrels per day in May, despite only occasionally buying Libyan oil in previous years.

Italy remained Libya’s largest customer, importing 348,000 barrels per day in May, accounting for roughly one-third of total Libyan crude exports. Greece, Spain and Turkey followed among the leading buyers of Libyan oil.

The Dangote refinery recently purchased two cargoes of crude oil from the United Arab Emirates, marking its first-ever procurement of Middle Eastern crude as it expands its feedstock sources amid persistent domestic supply constraints.

According to a report by S&P Global Commodity Insights, the two cargoes will be the first sourced by the refinery from any Middle Eastern supplier, signalling a shift from its traditional reliance on Nigerian, African, and United States crude grades.

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