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.
The approval was granted on Monday during the council’s 159th meeting, held virtually and chaired by Vice President Kashim Shettima, after a presentation by the Minister of Finance and Coordinating Minister of the Economy, Dr Taiwo Oyedele.
The new facility will enable the Nigerian National Petroleum Company Limited (NNPCL) to settle the outstanding balance of about $1.5 billion from the original Project Gazelle agreement signed in 2023 while providing an additional $3 billion to boost Nigeria’s foreign reserves and support government spending on key infrastructure and fiscal priorities.
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, members of the council welcomed the refinancing plan, describing it as an opportunity to improve the country’s liquidity position and strengthen government finances.
Speaking with journalists after the meeting, Oyedele said the new agreement offers better terms than the original facility, particularly by reducing the amount of crude oil committed as collateral.
He explained that the volume of crude pledged has been reduced from 90,000 barrels per day to about 78,750 barrels per day, representing a 12.5 per cent reduction.
According to the minister, this means an additional 11,250 barrels of crude oil per day will now be available for the federation to sell directly, allowing the government to retain more revenue outside the financing arrangement.
He added that the reduction in pledged crude volumes would also lessen NNPCL’s obligations under the new facility while improving the country’s overall financial flexibility.
