Finance Ministry Denies Collapse of Proposed $5bn Oil-backed Loan 

In a statement issued on Wednesday by Mr Mohammed Manga, Director of Information and Public Relations, the ministry described the reports as baseless speculation not grounded in fact. The statement stressed that the Federal Government has not reached any final decision on the forward sale of crude oil and that no official announcement has been made on the matter.

The reports had suggested that falling global crude prices and concerns over Nigeria’s oil production capacity had derailed the deal. However, the Finance Ministry insisted these claims do not reflect the government’s position, adding that commentary suggesting the failure of the initiative is inaccurate.

“The Federal Government remains committed to innovative, transparent, and fiscally responsible financing strategies to optimise Nigeria’s oil assets, improve external liquidity, and strengthen macroeconomic stability,” the statement read.

Negotiations with Aramco were reported to have slowed as lenders grew cautious over declining oil prices and Nigeria’s ability to meet supply commitments. The $5 billion deal, if concluded, would represent Nigeria’s largest oil-backed financing arrangement to date and Aramco’s first major loan exposure in the country.

In a separate financing arrangement, Nigeria secured the final $1.05 billion tranche of a $3.3 billion oil-backed loan from Afreximbank in April 2024. That facility, which is being repaid with 90,000 barrels of crude oil per day priced at $65 per barrel, is part of the government’s broader strategy to strengthen foreign exchange liquidity and support economic stability.

Despite market speculation, the Finance Ministry reaffirmed that all financing initiatives remain under careful evaluation, as the government continues to pursue measures aimed at strengthening Nigeria’s fiscal position and driving national development.