FG Denies Final Decision on $5 Billion Aramco Oil-Backed Loan Amid Price Concerns

The Federal Government of Nigeria has stated that no final decision has been made regarding reports of a $5 billion oil-backed loan from Saudi Arabia’s Aramco. The loan, part of a larger $21.5 billion borrowing plan submitted to the National Assembly by President Bola Tinubu, has not been publicly confirmed.

According to the Ministry of Finance, negotiations have been delayed due to the recent drop in global oil prices—from over $82 to about $65 per barrel—affecting the loan’s terms and viability. The government emphasized its commitment to exploring a range of transparent and fiscally responsible financing options to optimize oil assets and stabilize the economy.

If finalized, the deal would mark Nigeria’s largest oil-backed loan to date and Saudi Arabia’s first investment of this magnitude in the country. However, concerns about Nigeria’s ability to meet oil delivery targets have slowed negotiations, with Gulf and African banks expressing caution.

President Tinubu initially proposed the loan during a November 2024 meeting with Saudi Crown Prince Mohammed bin Salman. The proposed facility is intended to support Nigeria’s budget and economic reforms.