The National Economic Council (NEC) has approved the refinancing of Nigeria’s $3.3 billion Project Gazelle Pre-Export Finance Facility through a new $4.5 billion financing arrangement, a move expected to reduce financing costs, unlock fresh liquidity and strengthen the country’s external reserves.
The approval was one of the key resolutions reached at the 159th meeting of the National Economic Council, held virtually on Monday and chaired by Vice President Kashim Shettima.
Under the new arrangement, known as Project Gazelle 2, the Nigerian National Petroleum Company (NNPC) Limited will refinance the outstanding balance of about $1.5 billion under the original Project Gazelle facility signed in 2023 while securing an additional $3 billion to support the Federal Government’s fiscal and infrastructure priorities.
The Council’s approval followed a presentation by the Minister of Finance and Coordinating Minister of the Economy, Dr. Taiwo Oyedele, who outlined the strategic importance of the refinancing initiative. NEC noted that the transaction would unlock additional liquidity for the federation and improve the country’s financing structure, pledging its support for the implementation of the project.
Addressing journalists after the meeting, Dr. Oyedele explained that the new financing package had been negotiated on significantly better terms than the original agreement.
According to him, “the refinancing has been structured on more favourable terms than the original facility,” including a reduction in the volume of crude oil pledged as security from 90,000 barrels per day to about 78,750 barrels per day, representing a 12.5 per cent decrease.
He said the revised structure would release an additional 11,250 barrels of crude oil per day back to the federation while also reducing the quantity of crude committed by NNPC Limited.
The minister added that the arrangement would not only provide access to additional liquidity but also free up resources for strategic national priorities while strengthening Nigeria’s overall financing framework.
Earlier, Vice President Shettima urged members of the National Economic Council to pursue social protection policies capable of addressing multidimensional poverty across the country.
He stressed that government policies are ultimately measured by their impact on the daily lives of citizens rather than official pronouncements.
“Our policies are often heard before they are seen. They speak through the price of food, the condition of hospitals, the records in schools, the strain on families, the confidence of those who invest their labour in our nation’s future and, very importantly, the ambitions of state governments,” Shettima said.
The Vice President called on council members to ensure that every decision taken reflects the government’s commitment to improving citizens’ welfare.
He said, “Let every decision we make assure our citizens that their government is paying attention to the pulse of the nation and is resolved to respond with competence, compassion and purpose.”
Project Gazelle was originally introduced as a pre-export financing facility backed by future crude oil production to provide the Federal Government with immediate foreign exchange liquidity. The newly approved refinancing is expected to lower financing costs, ease pressure on pledged crude volumes and provide fresh funding to support Nigeria’s fiscal stability, infrastructure development and external reserve position.
