By Peter Omopo
The National Economic Council (NEC) has approved the refinancing of the $3.3 billion Project Gazelle Pre Export Finance Facility through a new $4.5 billion financing arrangement, known as Project Gazelle 2, in a move aimed at reducing borrowing costs and unlocking an additional $3 billion in liquidity for the Nigerian economy.
The approval was granted during the 159th meeting of the Council held virtually on Monday, according to a statement issued by the Senior Special Assistant to the President on Media and Communications in the Office of the Vice President, Stanley Nkwocha.
Under the new arrangement, the Nigerian National Petroleum Company Limited (NNPC Ltd) will refinance the outstanding balance of about $1.5 billion from the original 2023 facility while generating an additional $3 billion in liquidity to strengthen Nigeria’s external reserves and support the Federal Government’s fiscal and infrastructure priorities.
The decision followed a presentation by the Minister of Finance and Coordinating Minister of the Economy, Dr. Taiwo Oyedele, which was presented to the Council by Vice President Kashim Shettima, who presided over the meeting as Chairman of the National Economic Council.
The Council acknowledged the significance of the refinancing initiative, noting its potential to improve liquidity available to the federation, and pledged its support for the successful implementation of the project.
Speaking after the meeting, Oyedele said the refinancing package had been negotiated on more favourable terms than the original facility, including a reduction in the volume of crude oil committed as repayment.
He explained that the crude oil allocation pledged under the financing arrangement would decline from 90,000 barrels per day to approximately 78,750 barrels per day, representing a 12.5 per cent reduction. According to him, the adjustment would free an additional 11,250 barrels per day for the federation while reducing the repayment burden on NNPC Ltd.
The finance minister added that the revised structure would enhance liquidity, free up resources for strategic national priorities and strengthen Nigeria’s overall financing framework.
During the meeting, Vice President Shettima also called for the development of a responsive, scalable and data driven social protection policy to address multidimensional poverty across the country.
He stressed that government policies must respond to the realities faced by Nigerians, noting that their effectiveness is reflected in food prices, access to healthcare, education standards and the confidence of investors and workers.
According to the Vice President, government decisions should reassure citizens that their concerns are being addressed through practical, compassionate and purposeful policies capable of improving livelihoods and expanding economic opportunities.
Project Gazelle is a $3.3 billion crude oil backed pre payment financing facility arranged by the Nigerian National Petroleum Company Limited with funding support from the African Export Import Bank in 2023. The initiative was designed to provide immediate foreign exchange liquidity to Nigeria by using future crude oil production as collateral for the financing arrangement.
