Nigeria Pledges 340 Million Barrels to Repay N11.2 Trillion in Oil-Backed Loans

Nigeria has committed 340 million barrels of future crude oil production to repay three oil-backed loans totaling N11.2 trillion. The loans, known as Project Gazelle, Project Leopard, and Project Leopard II, involve repaying lenders with crude oil and interest over five years. Under these agreements, Nigeria is currently using about 186,250 barrels per day, roughly 11% of its current production, to settle the debts.

The largest of the three loans, Project Gazelle, signed in December 2023, commits 90,000 barrels per day, accounting for nearly half of the total crude pledged. Project Leopard, signed in December 2024, covers 35,000 barrels per day, while Project Leopard II, signed in December 2025, involves 61,250 barrels per day. Repayment for Project Leopard began in June 2025, and for Project Leopard II in June 2026, with the arrangements set to run until 2028, 2029, and 2030, respectively.

Stakeholders have expressed concerns about the long-term implications of these loans. Prof. Silk Ogbu from Lagos Business School criticized the practice, arguing that it does not generate sufficient value for the country and lacks transparency. Billy Gillis-Harry of the Petroleum Products Retail Outlets Owners Association of Nigeria warned that if crude prices rise significantly, Nigeria could lose out by delivering oil at lower agreed rates. David Adnori of Highcap Securities Limited noted the opportunity cost if oil prices increase but cautioned that lower prices could benefit Nigeria financially.

NNPC’s Group Chief Executive Officer, Bashir Bayo Ojulari, confirmed that Project Gazelle remains active until fully repaid, emphasizing that it involves the federal government’s Production Sharing Contract assets and does not directly affect NNPC’s joint-venture operations. He noted that the repayment period could extend if crude prices or production levels fall. The Ministry of Finance stated that these financing models aim to improve external liquidity and support macroeconomic stability.