National Economic Council (NEC) has approved the refinancing of Nigerian National Petroleum Company (NNPC) Limited’s $3.3 billion Project Gazelle pre-export finance facility through a new $4.5 billion arrangement, known as Project Gazelle 2, aimed at boosting Nigeria’s external reserves and providing additional funding for infrastructure and fiscal priorities.
Gatekeepers News reports that the approval was granted during the 159th NEC meeting chaired virtually by Vice President Kashim Shettima, following a presentation by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
Under the new arrangement, NNPC will refinance the outstanding balance of about $1.5 billion from the original 2023 facility while unlocking an additional $3 billion in liquidity for the federation.
Oyedele said the refinancing was negotiated on more favourable terms than the original agreement, including a reduction in the volume of crude oil pledged as collateral from 90,000 barrels per day to about 78,750 barrels per day, a 12.5 per cent decrease. He noted that the lower crude commitment would free up more oil for sale by the federation, potentially increasing government revenues outside the financing arrangement.
According to the Presidency, the new facility is expected to strengthen Nigeria’s external reserves, improve fiscal flexibility, ease pressure on the naira and support critical infrastructure projects, while helping to attract investor confidence in the country’s oil sector.
NEC also endorsed the initiative, citing its potential to unlock additional liquidity for the federation and support ongoing economic reforms.
