Business
FG Clarifies $5bn Aramco Loan Status
Amid ongoing conversations around a proposed crude-for-loan arrangement with Saudi oil giant Aramco, the federal government says it remains committed to deploying innovative and fiscally responsible financing strategies to optimise Nigeria’s oil assets, enhance external liquidity, and strengthen macroeconomic stability.
In a statement issued on Wednesday, the Federal Ministry of Finance addressed recent media reports suggesting that discussions over a $5 billion oil-backed loan deal with Aramco may have collapsed. The ministry stated that no final decision has been taken on the matter and urged the public to disregard speculations about the status of the negotiations.
“While market speculation is not uncommon in the context of ongoing economic reforms and transactions, no final decision has been announced by the Government, and commentary suggesting the collapse of any such initiative is unfounded,” the ministry said.
This clarification follows a report earlier in the week by Reuters, which indicated that the proposed oil-for-loan deal between Nigeria and Aramco had stalled. The report, citing four unnamed sources, said the deal was experiencing delays due to a recent downturn in global crude oil prices, which had raised concerns among prospective financiers.
According to the report, the deal, potentially Nigeria’s largest oil-backed loan, would have been the first of its kind involving Aramco at such a scale in the country. However, the sharp drop in global oil prices, along with evolving market indices, reportedly dampened interest among Gulf and African banks expected to co-fund the facility.
The proposed $5 billion loan is part of President Bola Tinubu’s broader external borrowing strategy, which includes a recent request to the National Assembly for approval to borrow $21.5 billion to support the 2024 budget. Sources familiar with the deal said President Tinubu first initiated talks during a bilateral meeting with Saudi Crown Prince Mohammed bin Salman in Riyadh at the Saudi-African Summit in November 2023.
As part of the loan terms, Nigeria would be required to allocate at least 100,000 barrels of crude oil per day to back the facility. However, oil price volatility and output constraints are reportedly complicating the structure of the arrangement.
Bonny Light, Nigeria’s flagship crude blend, is currently trading at around $78 per barrel, slightly above the $75 per barrel benchmark in the 2024 federal budget. Despite this, actual production remains below target. The May report from the Organisation of Petroleum Exporting Countries (OPEC) shows Nigeria produced just under 1.5 million barrels per day (bpd) in April, falling short of the 2 million bpd budgeted output.
Years of underinvestment in the oil sector have hindered Nigeria’s ability to ramp up production. At the same time, the country is using a significant portion of its oil output, estimated at 300,000 bpd, to service existing oil-backed loans, primarily through the Nigerian National Petroleum Company Limited (NNPC Ltd). While one of these facilities is expected to be paid off this month, lower oil prices mean Nigeria may need to allocate more barrels for debt servicing, which in turn affects its capacity to secure new deals.
The slow progress in the Aramco discussions is also attributed to concerns from participating banks over delivery commitments. Some of the lenders involved — said to include Gulf banks and at least one African financial institution — reportedly fear there may not be enough crude available to meet the loan terms due to existing obligations and rising joint-venture costs.
To address production shortfalls and increase oil revenue, the federal government has issued executive orders aimed at lowering production costs and incentivising upstream investments.
These efforts are part of a broader push to stabilise the country’s fiscal outlook amid mounting budgetary needs and global market headwinds.
Despite the current challenges, the federal government maintains that its financing decisions will remain anchored on transparency, accountability, and the effective utilisation of the country’s oil resources.
Thenationonlineng.net
The price of Premium Motor Spirit (PMS), popularly known as petrol, could fall to around N900 per litre if the proposed peace agreement between the United States and Iran is successfully implemented and global crude oil prices continue to decline.
The expectation follows fresh developments in the Middle East, where efforts to end months of hostilities have pushed international oil prices downward. Nigeria market report
Crude oil prices, which climbed sharply during the conflict, have dropped significantly in recent days as investors react positively to reports of a ceasefire framework and plans to reopen the Strait of Hormuz, one of the world’s busiest oil shipping routes.
Industry operators believe the development could eventually reflect in domestic fuel prices, especially as crude oil remains the major raw material for refined petroleum products.
Market watchers recalled that the prolonged crisis in the Middle East forced crude prices above the $100 per barrel mark, with some periods seeing prices rise beyond $120. The increase had a direct impact on fuel costs across several countries, including Nigeria.
During the period, petrol prices in Nigeria surged from about N830 per litre to around N1,300 per litre. Diesel and aviation fuel also recorded major increases, putting pressure on businesses and transport operators.
There are now growing expectations that local refiners, including the Dangote Petroleum Refinery, may review their prices if the downward movement in crude oil is sustained.
The refinery had previously reduced its petrol loading price from N1,275 per litre to N1,250 per litre after crude prices softened. Diesel prices were also adjusted downward during the same period.
A source familiar with operations at the refinery said another price cut is possible if the market remains stable. However, the source explained that a large volume of crude purchased at earlier, higher prices is still being processed, which could slow the pace of any immediate reduction.
According to the source, petrol selling at N900 per litre is achievable if global oil prices continue to decline and the market fully adjusts to the new realities.
Fuel marketers have also expressed optimism over the outlook.
The Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) said petrol prices could fall below N1,000 per litre once the Strait of Hormuz is fully reopened and crude oil returns to pre-conflict levels.
The association noted that Nigerians paid around N800 per litre before the crisis escalated and believes the market could gradually move back toward that range if peace is maintained.
The optimism comes after United States President Donald Trump announced that a peace arrangement with Iran was underway, with both countries expected to reopen the Strait of Hormuz as part of the agreement.
The planned reopening is expected to restore smoother global oil supply and reduce pressure on international energy markets.
Meanwhile, checks across the downstream sector indicate that some fuel marketers have already started adjusting their ex-depot prices below the current benchmark, signalling the possibility of another round of competition in the industry.
The landing cost of imported liquefied petroleum gas (LPG), also called cooking gas, has dropped significantly, offering fresh hope for lower energy prices across the country.
New data released by the Major Energy Marketers Association of Nigeria (MEMAN) showed that the cost of bringing fuel products into Nigeria has now fallen below the ex-depot prices offered by the Dangote Refinery.
The development comes as petroleum marketers reportedly imported fuel and gas valued at about N279 billion to boost supply and take advantage of declining international market prices, according to a report by Punch.
Cooking gas prices also witnessed a sharp decline in landing costs, raising expectations that consumers may soon enjoy relief from soaring household energy expenses.
MEMAN disclosed that the landing cost of LPG fell to N950,000 per metric tonne. Based on the latest figures, the expected retail price of cooking gas should hover around N925 per kilogramme.
This contrasts sharply with the N1,410 per kilogramme reportedly sold by Dangote Refinery. Despite the reduction in import costs, many Nigerians have yet to feel the impact at the retail level, as cooking gas prices remain stubbornly high across major cities.
Retailers currently sell cooking gas for as high as N2,400 per kilogramme, while larger distributors maintain average prices around N1,800 per kilogramme.
Fresh petrol depot prices have emerged across Nigeria as marketers adjust to rising crude oil prices and renewed tensions in the Middle East.
The latest pricing changes come amid growing uncertainty in the global energy market following fresh military exchanges between the United States and Iran near the Strait of Hormuz, one of the world’s most important oil transit routes.
ndustry data tracked by PetroleumPriceNG and monitored by Legit.ng show that depot owners raised their Premium Motor Spirit (PMS) prices as a protective measure against potential losses linked to volatile international oil prices.
Global crude oil prices climbed during early trading on Wednesday, June 10, 2026, after the United States launched strikes on Iranian military infrastructure near the Strait of Hormuz.
As of 5:08 a.m. WAT, Brent crude rose by 1.03% to $92.39 per barrel, while the U.S. West Texas Intermediate (WTI) crude gained 0.91% to trade at $89.00 per barrel, according to a report by Oilprice.com
The market rally followed reports that American forces targeted Iranian air defence systems, radar installations and surveillance facilities after Washington accused Tehran of bringing down a U.S. Army Apache helicopter operating within the region.
The U.S. Central Command described the strikes as a defensive response. However, Iran denied responsibility for the helicopter incident and accused the United States of escalating tensions unnecessarily. The development has raised fears of a broader regional conflict that could disrupt global crude oil supplies.
Checks across fuel depots nationwide show that marketers have adjusted their petrol prices upward in response to the changing global market conditions.
According to the latest data: AIPEC now sells petrol at N1,247 per litre RainOil Lagos sells at N1,248 per litre Integrated depot price stands at N1,247 per litre Liquid Bulk has also fixed its price at N1,248 per litre Industry experts say the latest adjustments are largely precautionary as marketers attempt to shield themselves from potential losses should crude oil prices continue to rise.
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