The Nigerian National Petroleum Company Limited (NNPCL) has agreed to allocate 272,500 barrels of crude oil daily, equivalent to 8.17 million barrels per month, towards repaying loans worth $8.86 billion.
According to a report by the Nigeria Extractive Industries Transparency Initiative (NEITI), these crude-for-loan deals cover various projects like Project Panther, Project Bison, Project Eagle, Project Yield, and Project Gazelle.
So far, NNPCL has repaid $2.61 billion, leaving $6.25 billion outstanding. The projects include agreements with local and international banks for the funding of ventures such as the Port Harcourt Refinery upgrade and a stake acquisition in the Dangote Refinery.
Despite the repayments, oil production in Nigeria remains low, with the country struggling to meet its peak production levels due to theft, maintenance issues, and underinvestment in the oil sector.
The House of Representatives recently directed NNPCL to halt further crude-for-loan agreements amid concerns over a $6 billion debt backlog and discussions for new oil-backed loans.
President Bola Tinubu has also implemented new reforms, including using naira for crude sales to local refineries, aiming to stabilize the economy and improve financial stability for the national oil company.
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