The Nigerian government has been borrowing against future crude oil production, with 340 million barrels committed to repay three oil-backed loans valued at N11.2 trillion. According to an analysis of the Nigerian National Petroleum Company Limited's (NNPCL) 2024 and 2025 annual financial reports, 186,250 barrels of crude oil per day, roughly 11 per cent of Nigeria's current production, are being used to repay the loans.
The loans in question are Project Gazelle, Project Leopard, and Project Leopard II. Project Gazelle, signed in December 2023, commits 90,000 barrels per day from Production Sharing Contract assets. Project Leopard, signed in December 2024, covers 35,000 barrels per day, while Project Leopard II, signed in December 2025, covers 61,250 barrels per day.
Under each arrangement, a lender provides NNPC with funds upfront, while NNPC repays the facility over time with crude oil, together with interest. The total value of the loans is estimated at N11.2 trillion, with the 340 million barrels distributed among the three deals. Project Gazelle is the largest, committing about 164.25 million barrels over its five-year term, accounting for nearly half of the total.
Project Leopard is the smallest, committing about 63.88 million barrels over its term, representing about 19 per cent of the total. Project Leopard II, the newest, sits in between, committing about 111.78 million barrels over its term, accounting for about a third of the total. Together, the three deals commit about 68 million barrels every year and 339.91 million barrels over their combined terms.
Counting five years from each deal's signing, about 204.8 million barrels remain to be delivered. Of this, about 71.2 million barrels belong to Gazelle, 40.5 million to Leopard, and 93.2 million to Leopard II. Leopard II therefore accounts for the largest share of the barrels still outstanding, meaning that Nigeria's crude will remain pledged to the facility for the longest period.
Repayment on Project Leopard began in June 2025, following a six-month moratorium, while repayment on Project Leopard II began in June 2026, also after a six-month pause. Based on the five-year terms stated for the facilities, the arrangements could run until 2030, raising concerns from stakeholders about the country's future oil output.
Stakeholders have urged the federal government to review the current practice of borrowing against future crude oil production, warning that the arrangement could leave part of the country's future oil output committed to lenders before the crude can generate revenue for Nigerians or support domestic economic needs.
Key points
- Nigeria has committed 340 million barrels of future crude oil production to repay N11.2 trillion oil-backed loans.
- The loans are being repaid through 186,250 barrels of crude oil per day, roughly 11 per cent of Nigeria's current production.
- Stakeholders have urged the government to review the practice of borrowing against future crude oil production.
