The Nigerian government is currently facing serious financial challenges, including a weakening naira, rising inflation, and a significant budget deficit. In response, the government planned to secure a $5 billion loan, using future oil deliveries as collateral—a method known as an oil-backed loan.

To make this happen, Nigeria entered talks with Saudi Aramco, one of the world’s largest oil companies, with the intention that Aramco would lead the financing or coordinate with global lenders and investors.

However, despite initial optimism, the process has stalled. Banks and other potential financiers are reluctant to move forward due to several financial and operational risks related to Nigeria's oil sector and broader economic conditions. This delay puts extra pressure on Nigeria’s economy, as the country was counting on the loan to fill gaps in its budget and boost confidence in the financial markets.