- The Nigerian National Petroleum Company Limited has earmarked more than 186,000 barrels per day of future crude production to service debt under three structured financing arrangements.
- According to its newly released 2025 Audited Financial Statements, the national oil company has settled N2.886 trillion out of an aggregate N12.083 trillion commitment, leaving nearly N9.8 trillion outstanding.
- Meanwhile, First Abu Dhabi Bank is seeking to syndicate a separate $5 billion financing arrangement for Nigeria among international lenders to spread financial exposure.
The Nigerian National Petroleum Company Limited (NNPC Ltd) has committed more than 186,000 barrels per day of future crude production to debt repayment under three major financing arrangements.
Details published in the company’s 2025 Audited Financial Statements reveal that these agreements—designated as Project Gazelle, Project Leopard, and Project Leopard II—were utilized to raise trillions of naira to support operations and upstream investments.
The disclosures indicate that out of an aggregate N12.083 trillion commitment spanning crude oil forward-sale agreements, gas supply agreements, and upstream funding obligations, NNPC had settled only N2.886 trillion as of December 31, 2025. This leaves approximately N9.8 trillion in outstanding obligations. The largest exposures stem from Project Gazelle and Project Leopard, which collectively account for roughly N8.13 trillion in financing.
Under Project Gazelle, initiated as a five-year forward-sale agreement in December 2023, NNPC committed 90,000 barrels per day, drawing N4.9 trillion from a N5.1 trillion facility and repaying N2.09 trillion by year-end 2025.
Project Leopard involved a fully drawn N3.05 trillion facility with N420 billion repaid. Additionally, Project Leopard II secured N3.03 trillion against a commitment of 61,250 barrels per day, with repayment scheduled to begin in June 2026 after a six-month moratorium, leaving the full principal outstanding at the close of 2025.
In parallel with these internal commitments, international financing efforts are underway. First Abu Dhabi Bank (FAB), the United Arab Emirates’ largest lender, is reportedly working to bring other international banks into a separate $5 billion financing arrangement for Nigeria.
Sources familiar with the transaction indicate the syndication will allow FAB to retain its role as the principal counterparty while sharing economic exposure with participating global lenders. Additional upstream commitments, including incremental gas agreements with Nigeria LNG Limited, continue to draw from allocated facility pools.
Committing large volumes of daily crude production to debt servicing constrains immediate physical revenues available to fund national economic priorities.
Managing multi-trillion-naira forward-sale obligations alongside upstream development costs underscores the liquidity pressures facing the state oil company.
“The three arrangements (projects) form part of NNPC’s wider financial obligations, with the company having settled only N2.886 trillion out of an aggregate N12.083 trillion commitment across crude oil forward-sale arrangements, gas supply agreements and upstream project funding obligations as of December 31, 2025.” – 2025 Audited Financial Statements.
As Project Leopard II repayment schedules commence and financial syndication discussions progress, market observers will monitor how NNPC balances its production commitments with broader revenue generation.
NNPC has tied over 186,000 barrels of daily production to multi-trillion-naira debt obligations, while international banking partners move to syndicate separate sovereign financing packages.
SOURCE: BizWatchNigeria.Ng
