The Nigerian National Petroleum Company Limited recorded about ₦8.2 trillion in liabilities from forward crude oil sale agreements at the end of 2025, according to details contained in the company’s audited financial statements.
The figure represents a substantial portion of NNPC’s contract liabilities and shows the extent to which future crude oil production has already been committed under financing and prepayment arrangements.
Forward crude-sale agreements allow an oil company to receive funding upfront in exchange for an agreement to deliver crude oil in the future. Such arrangements can provide immediate access to cash, but they also mean that part of future production is already tied to existing financial obligations.
According to the report, NNPC’s total contract liabilities stood at about ₦8.69 trillion, with approximately ₦8.25 trillion linked to forward-sale agreements. The company also recorded around ₦847.6 billion in interest associated with contract liabilities during the year.
One of the major arrangements is Project Gazelle, a crude-backed financing structure that involves the future supply of about 90,000 barrels of crude oil per day from production-sharing contract assets. The financing arrangement was established to provide funds for advance payments relating to tax and royalty obligations.
Other arrangements include Project Leopard and Project Leopard II. Together, the three projects represent significant commitments involving future crude production.
NNPC Group Chief Executive Officer Bashir Bayo Ojulari said Project Gazelle remains active until the associated obligations are fully settled. He explained that the duration of the arrangement could be affected by crude prices and production levels.
The company’s 2025 results also showed that NNPC remained profitable, recording about ₦7.2 trillion in profit after tax, although revenue fell from approximately ₦45.1 trillion in 2024 to ₦34.5 trillion in 2025. Operating cash flow was reported at about ₦12.8 trillion.
The size of the forward-sale obligations is significant because crude oil remains a major source of Nigeria’s foreign exchange earnings and government revenue. Committing future production to financing arrangements can provide immediate funding, but it also means that future crude output must be used to meet contractual obligations.
The disclosure therefore places renewed attention on the financial management of Nigeria’s oil sector, particularly how future crude production is financed and how much of the country’s oil revenue is available after existing commitments are settled.
