The National Economic Council (NEC) has approved a $4.5 billion refinancing arrangement, known as Project Gazelle 2, to replace the existing $3.3 billion Project Gazelle pre-export finance facility, a move aimed at strengthening Nigeria’s external reserves, improving liquidity and supporting key government priorities.
Under the new arrangement, the Nigerian National Petroleum Company (NNPC) Limited will refinance the outstanding $1.5 billion balance of the original 2023 facility while unlocking an additional $3 billion in liquidity for the federation.
The approval was granted during the 159th NEC meeting, held virtually on Monday, according to a statement issued by Stanley Nkwocha, media aide to Vice-President Kashim Shettima.
The council’s decision followed a presentation by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, delivered by Vice-President Shettima, who chairs the council.
“NEC observed the significance of unlocking additional liquidity to the federation, among other benefits, pledging its support for the actualisation of the initiative,” the statement said.
Speaking after the meeting, Oyedele said the refinancing package was negotiated on more favourable terms than the original agreement.
According to him, the volume of crude oil committed under the facility has been reduced from 90,000 barrels per day (bpd) to about 78,750 bpd, representing a 12.5 per cent reduction.
He added that the revised structure would release an additional 11,250 bpd to the federation while reducing the volume of crude oil committed by the NNPC.
Oyedele said the refinancing would provide fresh liquidity on improved terms, free up resources for strategic national priorities and strengthen Nigeria’s overall financing framework.
Meanwhile, Vice-President Kashim Shettima called for a more responsive, scalable and data-driven social protection system to address multidimensional poverty across the country.
He said government policies should deliver measurable improvements in the lives of Nigerians, including lower food prices, better healthcare and education, improved family welfare, stronger investor confidence and “very importantly, the ambitions of state governments.”
The Vice-President urged members of the council to ensure that every policy decision reflects the government’s commitment to meeting the needs of citizens.
“That their government is paying attention to the pulse of the nation and is resolved to respond with competence, compassion, and purpose,” Shettima said.
The original $3.3 billion Project Gazelle facility was secured by the NNPC on August 16, 2023, as an emergency crude-backed loan to support the naira and stabilise the foreign exchange market.
The facility was arranged by the African Export-Import Bank (Afreximbank) to support the Federal Government’s monetary and fiscal reform agenda.
Under the agreement, Nigeria was expected to pay an annual interest rate of 11.85 per cent on the pre-export finance facility.
The borrower under the arrangement is Project Gazelle Funding Ltd (PGFL), a special purpose vehicle (SPV) incorporated in the Bahamas, while the NNPC serves as the sponsor, repaying the facility through crude oil supplied to the SPV.
As part of the financing agreement, the NNPC is also required to prepay future royalties and taxes to the Federal Government.
