By Seun Ibiyemi
The National Economic Council (NEC) has approved a $4.5 billion Project Gazelle 2 refinancing facility, paving the way for the Federal Government to unlock an additional $3 billion in liquidity while restructuring an existing crude-backed loan on more favourable terms.
The approval was granted during the 159th meeting of the National Economic Council, held virtually on Monday and chaired by Vice President Kashim Shettima.
Under the arrangement, NNPC Limited will refinance the outstanding balance of about $1.5 billion under the original $3.3 billion Project Gazelle Pre-Export Finance Facility secured in 2023, while accessing fresh funding to strengthen Nigeria’s external reserves and support key fiscal and infrastructure projects.
Presenting the proposal to the council, the Minister of Finance, Dr. Taiwo Oyedele, said the refinancing had been structured to improve Nigeria’s financing position by reducing the volume of crude oil committed under the facility.
According to him, the new agreement cuts the pledged crude oil volume from 90,000 barrels per day to about 78,750 barrels per day, representing a 12.5 per cent reduction.
The revised terms will also release an additional 11,250 barrels of crude oil per day back to the federation while reducing NNPC Limited’s crude commitment under the financing arrangement.
Oyedele said the refinancing would provide cheaper funding, improve liquidity and free up additional resources for strategic national priorities without increasing pressure on the country’s oil production commitments.
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NEC noted that the transaction would enhance Nigeria’s external reserves, strengthen fiscal sustainability and provide additional financing to support ongoing infrastructure development.
The council expressed support for the initiative, describing it as an important step towards improving the country’s financial position while optimising the management of oil-backed financing arrangements.
Earlier in his opening remarks, Vice President Shettima urged members of the council to pursue responsive and data-driven social protection policies capable of addressing multidimensional poverty across the country.
He said government policies should translate into tangible improvements in citizens’ lives through better food security, healthcare, education and economic opportunities.
According to the Vice President, every decision taken by government should reassure Nigerians that their leaders remain committed to addressing the nation’s challenges with competence, compassion and purpose.
