Nigeria’s crude-backed loans cost the country about $1.4 billion from 17,151,941 barrels of oil in two months, as dwindling oil prices reportedly stall a fresh $5 billion crude-backed loan with Saudi Arabia.

Between January and February 2024, different organisations, which loaned money to the Nigerian National Petroleum Company Limited (NNPCL) in various Direct Sale Direct Purchase (DSDP) and Joint Venture (JV) arrangements lifted a combined 17.1 million barrels of crude oil, according to data published on NNPC website.

Although the state oil company did not publish further details on DSDP lifting in the last 16 months, raising concerns over its commitment to transparency, the development showed that the country’s actual earnings from crude oil remained low due to indebtedness and low oil production.

While the NNPC had in July last year hinted that it intended to borrow $2 billion in exchange for crude oil, Reuters reported, yesterday, that the company intended to get a $5 billion crude oil loan from Saudi Arabia, but that the move was stalled by worsening oil prices and the country’s low oil production.

In January 2024, a total of 7,026,512 barrels of crude oil were lifted by different companies that loaned money to NNPCL, bringing in about $575.93 million.

Under the NUIMS JV DSDP Project Yield, there was a single lifting, with the vessel Brest transporting 949,374 barrels of crude under the MPN producer agreement. This transaction, invoiced at an average unit price of $81.08 per barrel, amounted to k$76.97 million.

The DSDP Cordpa project used the vessel Monte Urquola to move 953,436 barrels of Egina crude under the TUPNI agreement, valued at $80.20 million. The DSDP Eppi project used the vessel Sienna to lift 649,614 barrels of crude under the FIRST & E agreement, worth $51.30 million. That same day, the DSDP PPSA project recorded a lifting with the vessel Front Brage, which carried 946,944 barrels of blended crude under SPC, totalling $77.28 million.

The FIRSDSDP project had multiple liftings. The Almi Explorer lifted 950,812 barrels of Bonga crude under SNEPCO, worth $78.46 million. This was followed by the Sonangol Kulumba, which lifted 825,306 barrels of crude under ESSO, valued at $69.68 million. The Sydney Spirit carried another 951,617 barrels of crude, also under ESSO, amounting to $80.98 million.

Altogether, the FIRSDSDP project lifted 2,728,335 barrels at an average price of $83.98 per barrel, totalling $229.11 million. The vessel Sapphira transported 798,809 barrels of ESSO crude under the USAN agreement, valued at $61.07 million.

In the first four months of the year, the country already lost about $4.1 billion in terms of production shortfalls alone. The spokesperson of NNPCL, Olufemi Soneye, did not immediately respond to inquiries on the plans of the oil firm to borrow $5 billion from Saudi Arabia and the possible challenges faced by the deal.