NewStats: 3,265,285 , 8,186,250 topics. Date: Saturday, 14 June 2025 at 09:12 AM 206014

Falling oil prices have made negotiations between Aramco and Nigeria’s government more difficult over a record $5-billion loan backed by oil, which Saudi Arabia’s state oil giant has agreed to extend to Africa’s largest oil producer, sources told Reuters on Tuesday.

Nigeria is using at least 300,000 barrels per day (bpd) to repay other oil-backed loans that its national oil firm NNPC has taken.

A $5 billion oil-backed loan would be Nigeria’s largest such loan, as well as the biggest participation of Saudi Arabia in the African OPEC producer.

However, the 20% decline in oil prices since January has delayed an agreement over the loan deal.

The dip in oil prices means that Nigeria will have to back the $5 billion loan with more oil production, and may have to back it with at least 100,000 bpd of oil, as estimated by Reuters’ sources.

But Nigeria has been struggling in recent years to raise its oil production.

Last month, Nigeria’s government urged the oil companies operating in the country to collaborate to increase oil output in the producer that hasn’t been able to pump to its OPEC quota for years.

Nigeria’s crude oil production averaged 1.4 million bpd in the first quarter of the year, well below the 1.8 million bpd quota in OPEC, Ekperikpe Ekpo, Nigerian Minister of State for Gas, said at a local industry conference.

Oil theft and pipeline vandalism have long plagued Nigeria’s upstream oil and gas industry, driving majors out of the biggest OPEC producer in Africa and often resulting in force majeure at the key crude oil export terminals.

Nigerian authorities have been clamping down on oil theft and have been ive of an increase in oil and gas output in recent months.

NUPRC said earlier this month that U.S. supermajor ExxonMobil plans to invest as much as $1.5 billion in deepwater oil and gas exploration and development offshore Nigeria.

By Tsvetana Paraskova

Source :https://oilprice.com/Latest-Energy-News/World-News/Saudi-5-Billion-Loan-to-Nigeria-Hangs-in-the-Balance-as-Crude-Prices-Plunge.html

$5B Oil-Backed Loan Is a Financial Suicide Pact

This isn't strategy. It's economic self-sabotage. Nigeria taking out another oil-backed loan-its only real revenue-generating lifeline-just to build non-revenue-generating infrastructure is like mortgaging your only kidney to buy a golden toilet.

1. YOU CAN'T BUILD WEALTH BY SELLING YOUR ONLY ASSET AT A DISCOUNT

Nigeria is pledging 100,000 barrels/day to repay a $5B loan. At $65/barrel (current rate), that's $6.5 million/day in exports gone-not reinvested, not taxed, just vanished to pay back a foreign creditor.
And if oil drops further? Nigeria has to pump more to pay the same. That's a slave contract, not a financial instrument.

2. NON-REVENUE INFRASTRUCTURE IS A FANCY SINKHOLE

These loans are not being used for cash-generating assets. No toll roads. No export-oriented rail. No pipelines. Instead, we get white elephants: stadiums, airports, urban boulevards. All things that require foreign parts, foreign maintenance, and worse-no ROI.
How do you pay back a $5B loan with a library or conference center?

3. IT'S MORTGAGING THE FUTURE FOR ELITE BRAGGING RIGHTS

What we're witnessing isn't nation-building-it's short-term optics for elite validation. A shiny new bridge, a "smart" capital city project, a photo-op at a ribbon-cutting. Meanwhile, the crude goes out, the dollars never reach SMEs, and youth unemployment stays a volcano.

4. NOBODY TRUSTS THE NNPC. BANKS AREN'T STUPID

Even the lenders are twitching. The deal is dragging because banks don't believe Nigeria can deliver the oil. Years of under-investment, theft, and pipeline vandalism mean that even if you wanted to repay, you might not have the crude to do it. That's financial leprosy.


5. OIL-BACKED LOANS = MODERN COLONIAL LEASEHOLDS

Let's call it what it is: a blood pact with Aramco. For a quick fix, Nigeria will now be offering oil not on its own -but under Saudi pricing, Saudi timelines, and foreign bank custody.
It's the new digital oil plantation-except the masters wear suits and the chains are Bloomberg terminals.


Nigeria isn't leveraging oil to build wealth.
It's bartering survival to build maintenance-intensive fantasies that generate nothing but debt, dependence, and press statements.

It's just a matter of time

What the Hellyante 😳🤷🏾

Goodness27:
These people still collecting loans?

Nigeria is using at least 300,000 barrels per day (bpd) to repay other oil-backed loans that its national oil firm NNPC has taken.

By the time tinubu will finish with you guys,All of you we be running to somilia.

Increase the crude oil amount and still take the loan
The loam must be taken by fire by force

Am happy its all our common wealth apc is using to enrich themselves and buy more loyalty.

Thieves in government... Y'all were happy they cleared imf loan you didn't know they collected from opay to pay palmpay

This country would never get better, Nigerians used their hands to spoil it by voting trash called leaders all the time

helinues:


Nigeria is using at least 300,000 barrels per day (bpd) to repay other oil-backed loans that its national oil firm NNPC has taken.

Bullshit

Let it go around.

helinues:


Nigeria is using at least 300,000 barrels per day (bpd) to repay other oil-backed loans that its national oil firm NNPC has taken.

Sharrap, loan buhari took, and cronies like you ed while calling others wailers. You are now putting it on nnpc so you won't say it's buhari. Shame on you guys

Ohhh you think its only 300bpd Nigeria is using to repay loans, I said it before you are very far from reality.

The people who are supposed to be leaders are sabotaging the country

Another loan backed with oil
The one taken from AfdB was also backed with oil that's thrice the amount of the loan in value
Now you want to add another 100k barrels of oil to take $5bn
And they said this man created Lagos
Did he take loan backed with salt water to create Lagos or what?
The deceit keeps unravelling

A whole country dey collect loans anyhow but if person collect small loan from all these online loan sharks, they go use calls finish person life. 😂 😂 😂

I thought reno said they aren't borrowing

Saudi want to borrow Nigeria $5b loan? Are we not using same oil to develop countries?

The Saudi loan should be cancelled.
All these foreign loans should stop.

malali:
$5B Oil-Backed Loan Is a Financial Suicide Pact

This isn't strategy. It's economic self-sabotage. Nigeria taking out another oil-backed loan-its only real revenue-generating lifeline-just to build non-revenue-generating infrastructure is like mortgaging your only kidney to buy a golden toilet.

1. YOU CAN'T BUILD WEALTH BY SELLING YOUR ONLY ASSET AT A DISCOUNT

Nigeria is pledging 100,000 barrels/day to repay a $5B loan. At $65/barrel (current rate), that's $6.5 million/day in exports gone-not reinvested, not taxed, just vanished to pay back a foreign creditor.
And if oil drops further? Nigeria has to pump more to pay the same. That's a slave contract, not a financial instrument.

2. NON-REVENUE INFRASTRUCTURE IS A FANCY SINKHOLE

These loans are not being used for cash-generating assets. No toll roads. No export-oriented rail. No pipelines. Instead, we get white elephants: stadiums, airports, urban boulevards. All things that require foreign parts, foreign maintenance, and worse-no ROI.
How do you pay back a $5B loan with a library or conference center?

3. IT'S MORTGAGING THE FUTURE FOR ELITE BRAGGING RIGHTS

What we're witnessing isn't nation-building-it's short-term optics for elite validation. A shiny new bridge, a "smart" capital city project, a photo-op at a ribbon-cutting. Meanwhile, the crude goes out, the dollars never reach SMEs, and youth unemployment stays a volcano.

4. NOBODY TRUSTS THE NNPC. BANKS AREN'T STUPID

Even the lenders are twitching. The deal is dragging because banks don't believe Nigeria can deliver the oil. Years of under-investment, theft, and pipeline vandalism mean that even if you wanted to repay, you might not have the crude to do it. That's financial leprosy.


5. OIL-BACKED LOANS = MODERN COLONIAL LEASEHOLDS

Let's call it what it is: a blood pact with Aramco. For a quick fix, Nigeria will now be offering oil not on its own -but under Saudi pricing, Saudi timelines, and foreign bank custody.
It's the new digital oil plantation-except the masters wear suits and the chains are Bloomberg terminals.


Nigeria isn't leveraging oil to build wealth.
It's bartering survival to build maintenance-intensive fantasies that generate nothing but debt, dependence, and press statements.

Who told you Stadium and airport don't generate money?

They should use the money to build better olosho house in each local government area in this country. At least we go dey enjoy

helinues:
It's just a matter of time

...before the economy crashes under the clueless fellow, right?

If Saudi is dillydallying, go to China, China will give us

This same Tinubu has alreafy mortgaged Nlng annual profit of US1.5billion dollars for the next 4 years or so; this he did more than a year ago. Now he is turning to crude oil through NNPC. Upon the subsidy removal, this government is hell bent on selling all the profits from our national asset in advance...

Paid $2.5b, wants to collect $5b and expects Nigerians to hail him...

Funny people.

Take the loan and use it well for the benefit of the masses. Stop the grandstanding.

Obj paid $12b in one fell swoop and Nigerians did not have to suffer untold hardships.

Blame Buhari who initiated the crude for loan scheme. Blame Buhari who squandered the Excess Crude with the likes of Oshiomole, Amaechi and Fashola who harassed Jonathan and Okonjo-Iweala (Peter Obi was the only governor who opposed the extravagance) for saving money. Blame Buhari who backed massive insecurity across the country.

Most of you, including the OP, campaigned and voted for Buhari in 2015. Why are you lots complaining?

forgiveness:


Who told you Stadium and airport don't generate money?

If Nigerian stadiums were generating money they wouldn’t be in the dilapidated state they are in. You’re mixing it with premier league stadiums that have events almost every weekend and fans pay hundreds of pounds to attend.

How many events does Nigerian stadium host? How much do they charge for tickets? How much was used to build the stadium and how many years before they break even.

Secondly, most airports run at a loss that’s why they are mostly government owned. If we make airports private very few Nigerian will be able to afford to fly.

malali:


Source :https://oilprice.com/Latest-Energy-News/World-News/Saudi-5-Billion-Loan-to-Nigeria-Hangs-in-the-Balance-as-Crude-Prices-Plunge.html

Will dangote be willing to repay those oil backed loans so he can get a steady oil supply instead of importing from Yankee. That's a heavy investment and he won't want to give up stakes in his oil refinery..but by making his refinery public he can actually pay of that 5billion dollars and get that 300 thousand barrels per day.. an opportunity for those oil marketers to divert from importing refined products and get into the business of developing Nigeria.

Okay our loan quest has now moved to private oil coys... Las las we go beg Toyota for loan

Nice

This is good, let them sell off all their oil quota, let them sell it in such a way that it will take another 30years for the government to get it back. May be that way, other governments will not focus solely on oil as source of income, they would need to generate other mean to make money for the country. Because the endless dependent on oil is not sustainable.

Blitzking:

Will dangote be willing to repay those oil backed loans so he can get a steady oil supply instead of importing from Yankee. That's a heavy investment and he won't want to give up stakes in his oil refinery..but by making his refinery public he can actually pay of that 5billion naira and get that 300 thousand barrels per day.. an opportunity for those oil marketers to divert from importing refined products and get into the business of developing Nigeria.

Very good idea. Better still Nigerians can come together and buy the 5 billion of crude Oil and then pay Dangote to refine it, and sell the Refined products i.e petrol to Nigerians and export the rest, which will generate more profit than selling the raw ,unrefined crude oil.
500,000 people contributing $100 each, would buy the 5 billion dollars crude. Dangote can refine it, that's just 20 days of petrol for the whole country based on consumption.