The Nigerian National Petroleum Company Limited may continue servicing its crude-for-loan obligations till 2029 as the demand for oil by domestic refineries increases.
NNPCL’s debt burden arises from several crude-for-loan agreements that have tied volumes of the country’s oil production to various financial commitments.
This is as the local demand for crude has continued to rise following the coming onstream of the Port Harcourt and Warri refineries, alongside the mega $20bn Dangote Petroleum Refinery located in Lagos.
Also, the Nigerian Upstream Petroleum Regulatory Commission revealed last week that the Port Harcourt, Dangote, Warri, and other functional refineries would require 123,480,500 barrels of crude oil between January and June 2025.
This means the demand for crude by indigenous refiners has continued to rise amid the crude-for-loan obligations of the national oil company.
Findings showed that the NNPCL has pledged 272,500 barrels per day of crude oil through a series of crude-for-loan deals totalling $8.86bn.
