The Nigerian National Petroleum Company Limited is 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, which cut across several forward sale and project financing arrangements, are expected to be settled through sustained deliveries of crude oil and gas. The commitments have become a major component of the company’s funding structure following prolonged fiscal pressure, volatile crude production and declining upstream investment.
Findings showed that the facilities were deployed to refinance legacy debts, support refinery rehabilitation, boost cash flow and meet government revenue obligations.
One of the key exposures is linked to the Eagle Export Funding arrangement. The company disclosed that at least 1.8 million barrels of crude must be delivered in each cycle. Earlier reports showed the facility comprises three separate loan tranches.
A $935m loan secured in 2020 and backed by 30,000 barrels per day was fully repaid by September 2023, while a second tranche of $635m was also cleared within the same period. The outstanding exposure is the Project Eagle Export Funding Subsequent 2 Debt, a $900m facility obtained in 2023 and secured with 21,000 barrels per day. As of December 2024, the balance stood at N1.1tn.
The financial statement noted, “The company had capital commitments of N1.1tn as at the year ended 31 December 2024. This relates to the forward sale agreement with Eagle Export Funding Limited for the delivery of crude oil.”
Another major obligation arises from the incremental gas supply financing with Nigeria LNG Limited. Under the arrangement, NLNG provided upfront funding of N772bn for future gas supplies. By the end of 2024, gas valued at N535bn had been drawn, with N312bn recovered, leaving N460bn yet to be supplied. Financing charges of N12bn raised the outstanding balance to N472bn.
The refinery rehabilitation programme also accounts for large crude secured debts. Project Yield, which backs the Port Harcourt Refinery upgrade, had an outstanding drawdown of N1.4tn as of December 2024. The loan is secured with 67,000 barrels per day of crude equivalent and repayment is expected to commence in June 2025 after a two and a half year moratorium.
Similarly, Project Leopard carried an outstanding balance of N1.3tn, backed by 35,000 barrels per day, while Project Gazelle, the largest exposure, had N3.8tn outstanding out of a N5.1tn facility after crude deliveries valued at N991bn.
Combined, the facilities commit about 213,000 barrels per day of crude production, raising concerns among analysts about the implications for government revenue and export allocation.
Industry experts warned that the scale of the obligations leaves the company vulnerable to production disruptions and price fluctuations.
NNPCL has yet to issue an official reaction to the latest debt profile as of the time of filing this report.
