NEC backs $4.5bn Project Gazelle refinancing, cuts crude commitment
The National Economic Council (NEC) on Monday approved the refinancing of the $3.3 billion Project Gazelle Pre-Export Finance Facility through a new $4.5 billion arrangement, Project Gazelle 2, aimed at reducing financing costs and unlocking an additional $3 billion in liquidity for the country.
The approval, granted at the 159th NEC meeting chaired virtually by Vice President Kashim Shettima, will enable the Nigerian National Petroleum Company (NNPC) Limited to refinance the outstanding balance of about $1.5 billion under the original 2023 facility while providing fresh funding to bolster Nigeria’s external reserves and support key fiscal and infrastructure projects.
The Council endorsed the proposal after a presentation by the Minister of Finance, Dr Taiwo Oyedele, who highlighted the economic benefits of the refinancing plan.
Addressing journalists after the meeting, Oyedele said the new facility was negotiated on more favourable terms than the original agreement.
He disclosed that the volume of crude oil pledged under the facility had been reduced from 90,000 barrels per day to about 78,750 barrels per day, representing a 12.5 per cent cut.
According to him, the revised arrangement will free up an additional 11,250 barrels of crude oil per day for the federation while reducing NNPC Limited’s pledged crude commitments.
“The refinancing allows Nigeria to access additional liquidity on improved terms while freeing up resources for strategic national priorities and strengthening the country’s financing structure,” the minister said.
NEC said the refinancing would enhance the federation’s financial position by unlocking additional liquidity and optimising the cost of the existing facility.
