…Unlocks $3bn fresh liquidity
The National Economic Council (NEC) has approved the refinancing of the $3.3bn ‘Project Gazelle Pre-Export Finance Facility’ through a new $4.5bn Project Gazelle 2 arrangement.
The move is expected to unlock $3bn in fresh liquidity while reducing Nigeria’s crude oil commitments under the facility.
The approval was granted at the 159th NEC meeting, held virtually on Monday, and chaired by Vice-President Kashim Shettima, following a presentation by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
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, the new arrangement will enable the Nigerian National Petroleum Company Limited (NNPCL) to refinance the outstanding balance of about $1.5bn under the original 2023 facility while providing additional funding to strengthen Nigeria’s external reserves and support key fiscal and infrastructure programmes.
Speaking after the meeting, Oyedele said the refinancing had been negotiated on significantly more favourable terms than the original agreement, including a reduction in the volume of crude oil pledged as collateral.
“The refinancing has been structured on more favourable terms than the original facility, including a reduction in the volume of pledged crude oil from 90,000 barrels per day to approximately 78,750 barrels per day, representing a 12.5k reduction”, he said.
He explained that the lower crude commitment would release an additional 11,250 barrels per day for the federation, allowing the government to earn more revenue from crude sales outside the financing arrangement. According to the minister, the refinancing delivers improved liquidity while strengthening Nigeria’s financing structure. “While accessing additional liquidity on improved terms, the arrangement is freeing up resources for strategic national priorities while strengthening the country’s financing structures”, he added.
In his remarks, Vice-President Shettima urged members of the Council to design a responsive, data-driven social protection framework capable of addressing multidimensional poverty across the country. He said government policies are ultimately measured by their impact on citizens’ daily lives, including food prices, healthcare, education and employment opportunities.
Project Gazelle was introduced in 2023 as a crude oil-backed pre-export financing facility to provide Nigeria with dollar liquidity following the foreign exchange reforms that accompanied the unification of the exchange-rate windows.
The new Project Gazelle 2 facility restructures the existing loan on improved terms while increasing available funding, reflecting what officials described as NNPC Ltd.’s stronger negotiating position following reforms aimed at boosting crude production and attracting investment into the oil sector.
