The National Economic Council (NEC) has approved the refinancing of the 3.3 billion-dollar Project Gazelle Pre-Export Finance Facility through a new 4.5 billion-dollar Project Gazelle 2 financing arrangement.
The approval was granted during the 159th NEC meeting held virtually on Monday and chaired by Vice President Kashim Shettima.
The decision followed a presentation by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, who outlined the benefits of the proposed refinancing.
Under the new arrangement, the Nigerian National Petroleum Company Limited (NNPC Ltd.) will refinance the outstanding balance of about 1.5 billion dollars from the original 2023 facility while securing an additional 3 billion dollars in liquidity.
The additional funds are expected to strengthen Nigeria’s external reserves and support key fiscal and infrastructure projects.
Details of the approval were disclosed in a statement issued by the Senior Special Assistant to the President on Media and Communications in the Office of the Vice President, Stanley Nkwocha.
According to the statement, NEC recognised the importance of the refinancing in unlocking additional liquidity for the federation and expressed support for its implementation.
Speaking with journalists after the meeting, Oyedele said the new financing package had been negotiated on significantly better terms than the original facility.
He explained that one of the major improvements is the reduction in the volume of crude oil pledged as security for the loan.
According to the minister, the volume of pledged crude oil has been reduced from 90,000 barrels per day to approximately 78,750 barrels per day, representing a 12.5 per cent reduction.
He said the adjustment would release an additional 11,250 barrels of crude oil per day for the federation, allowing Nigeria to sell more crude outside the financing arrangement and retain more revenue.
Oyedele described the refinancing as a major financial achievement that improves access to liquidity while strengthening the country’s financing structure.
He added that the arrangement would free up additional resources for strategic national priorities without increasing pressure on existing obligations.
In his opening remarks, Vice President Shettima urged members of the Council to develop a responsive, scalable and data-driven social protection policy to tackle multidimensional poverty across the country.
He said government policies should produce visible improvements in the daily lives of Nigerians, including lower food prices, better healthcare, improved education and stronger confidence among investors.
Shettima stressed that every decision taken by the Council should reassure citizens that the government is responding with competence, compassion and purpose to the nation’s challenges.
Project Gazelle was introduced in 2023 as a pre-export finance facility backed by future crude oil sales. It was designed to provide Nigeria with dollar liquidity to stabilise the foreign exchange market and support the naira following the unification of the country’s exchange-rate system.
The new Project Gazelle 2 extends and restructures the existing facility on improved terms. The refinancing reflects NNPC Ltd.’s stronger negotiating position after recent reforms aimed at increasing oil production, attracting fresh investment and improving the performance of Nigeria’s petroleum sector.
