The Nigerian National Petroleum Company Limited (NNPC) paid ₦686.94 billion in interest on crude-backed forward sale agreements in 2025, representing a 171.4 per cent increase from ₦253.14 billion recorded in 2024.
The figures, contained in the company’s 2025 audited financial statements, highlight the rising cost of using future crude oil supplies to secure financing.
NNPC’s outstanding liabilities under the arrangements increased from ₦4.98 trillion in 2024 to ₦7.10 trillion at the end of December 2025, representing a 42.7 per cent rise within one year.
The company recorded additional drawdowns of ₦5.57 trillion during 2025, compared with principal repayments of ₦2.76 trillion. Although repayments increased significantly from ₦942.08 billion in 2024, new borrowing through the arrangements exceeded the amount repaid.
The financing costs also rose sharply, with premiums attached to the contract liabilities increasing from ₦249.38 billion in 2024 to ₦666.66 billion in 2025.
Project Leopard accounted for ₦5.38 trillion of the outstanding liabilities at the end of 2025, representing approximately 75.7 per cent of the total. Another arrangement, Project Yield, was fully settled during the year following principal repayments of ₦1.52 trillion.
Forward sale agreements allow NNPC to obtain funds upfront in exchange for crude oil to be supplied in the future. While the arrangements provide immediate financing, they also commit future production and expose the company to continuing financial obligations.
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