Nigeria TV Info 

States Demand Forensic Audit of $8.8bn Crude‑for‑Loan Deals

Nigeria — March 13, 2026: Several state governments across Nigeria are calling for a forensic audit of controversial crude oil‑backed borrowing deals worth about $8.86 billion involving the Nigerian National Petroleum Company Limited (NNPC). The demand comes amid fears that opaque crude‑for‑loan and swap arrangements are siphoning off revenues that should be flowing into the Federation Account, undermining fiscal transparency and accountability.

State finance commissioners, speaking at the end of a retreat of the Federation Account Allocation Committee (FAAC) Post‑Mortem Sub‑Committee in Enugu, issued a communiqué urging full legislative approval, public disclosure and independent audits of all crude‑backed borrowing arrangements. They also want existing deals reviewed and subjected to forensic audit to restore confidence and safeguard future revenues.

NNPC’s own financial statements show it pledged 272,500 barrels per day of crude through a series of deals amounting to about $8.86 billion. Of that, roughly $2.61 billion has been repaid, while about $6.25 billion remains outstanding as of December 2023. Only about $6.97 billion in funds from seven crude‑for‑loan arrangements has been received, raising concerns among states about accountability and the impact on national finances.

Participants in the retreat flagged crude‑for‑product swaps such as Project Gazelle and the Direct Sale Direct Purchase (DSDP) scheme as examples of arrangements lacking transparency and oversight. They stressed that better fiscal controls are needed to prevent revenue leakages and ensure equitable distribution of federation resources.

Officials, including fiscal authorities and revenue experts, underscored the importance of transparency in managing oil‑backed deals, which accounted for a significant portion of Nigeria’s crude output in recent years. There was no immediate response from NNPC on the audit demands.