The Nigerian National Petroleum Company Limited (NNPC) has repaid part of its $3 billion forward-sale loan from the African Export-Import Bank (Afreximbank) with crude oil valued at N991 billion, according to its 2024 financial statement. The repayment was made under Project Gazelle, a forward crude oil supply agreement signed in 2023.

NNPC had initially secured the emergency loan to help the Federal Government stabilize the nation’s exchange rate. The loan arrangement involved supplying 90,000 barrels of crude oil per day from Production Sharing Contract (PSC) assets. By the end of 2023, $2.25 billion had already been drawn down, with principal repayment beginning in June 2024.

The 2024 financial report shows that NNPC lifted crude oil worth N991 billion between June and December 2024, leaving an outstanding balance of N3.8 trillion. The report did not disclose the identity of the buyers or the exact delivery volumes for the year.

Project Gazelle is one of NNPC’s largest forward-sale financing arrangements, alongside other crude-backed loans including Eagle Export Funding, Project Yield, and Project Leopard. Combined, these agreements commit 213,000 barrels of crude per day, not including separate gas deliveries under NLNG arrangements. Analysts say these deals significantly affect Nigeria’s crude allocation, government revenue, and operational flexibility.

Despite a recovery in oil production, Nigeria’s gross profit from crude and gas sales dropped by 43 percent in 2024, falling from N1.9 trillion in 2023 to N1.08 trillion, according to the Budget Office of the Federation. Oil and gas expert Ademola Adigun attributed the decline to opaque crude-for-cash agreements and forward-sale loan obligations, which reduce the volume of crude generating fresh revenue for the Federation Account.

Adigun urged greater transparency in the sector, emphasizing the need for the Nigeria Extractive Industries Transparency Initiative to audit crude usage in debt repayment and swap transactions.