Nigeria’s $5 billion oil-backed loan deal with Saudi Arabia remains uncertain due to falling oil prices. Negotiations between Aramco and the Nigerian government have stalled, as the 20% price drop since January would require Nigeria to pledge more oil—potentially at least 100,000 barrels per day—to secure the loan.
This deal, if finalized, would be Nigeria’s largest oil-backed loan and Saudi Arabia’s biggest financial involvement in the country. Nigeria is already using 300,000 bpd to repay existing oil-backed loans.Nigeria continues to struggle with low oil output, averaging 1.4 million bpd—well below its 1.8 million OPEC quota.
Issues like oil theft and pipeline vandalism have driven major oil firms away. The government is urging collaboration to boost production and has cracked down on oil theft. ExxonMobil plans to invest up to $1.5 billion in offshore deepwater projects.
