New financing arrangement will replace the 2023 crude-backed facility, unlock an additional $3 billion in liquidity and reduce the volume of oil pledged under the deal……
The National Economic Council (NEC) has approved a $4.5 billion refinancing facility, known as Project Gazelle 2, to replace the existing $3.3 billion Project Gazelle crude-backed financing arrangement secured by the Nigerian National Petroleum Company (NNPC) Limited in 2023.
The new facility is expected to refinance the outstanding $1.5 billion balance under the original agreement while providing an additional $3 billion in fresh liquidity to support Nigeria’s external reserves and finance key government fiscal and infrastructure priorities.
The approval was granted during the 159th meeting of the National Economic Council, held virtually on Monday and chaired by Vice President Kashim Shettima.
According to a statement issued by the Vice President’s media aide, Stanley Nkwocha, the decision followed a presentation on the proposed refinancing by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
The statement said members of the council acknowledged the importance of unlocking additional funding for the federation and expressed support for the implementation of the initiative.
Speaking after the meeting, Oyedele explained that the refinancing package was negotiated on more favourable terms than the original facility, reducing the country’s crude oil commitments while improving access to financing.
He disclosed that the volume of crude oil pledged under the arrangement would decline from 90,000 barrels per day to approximately 78,750 barrels per day, representing a 12.5 per cent reduction.
According to the minister, the revised structure will free up an additional 11,250 barrels per day for the federation while lowering the crude volumes committed by the NNPC under the financing agreement.
Oyedele said the refinancing would not only provide fresh liquidity but also create fiscal space for strategic national projects and strengthen Nigeria’s broader financing framework.
During the meeting, Vice President Shettima also stressed the need for a more responsive and data-driven social protection system to address multidimensional poverty across the country.
He noted that government policies should produce measurable improvements in the daily lives of Nigerians, including lower food prices, better healthcare, quality education, improved family welfare and stronger investor confidence.
Shettima urged members of the council to ensure that every policy decision reflects the government’s commitment to responding effectively to the needs of citizens with competence, compassion and purpose.
The original Project Gazelle facility was secured by the NNPC in August 2023 as a $3.3 billion emergency crude-backed loan arranged by Afreximbank to help stabilise the naira and support Nigeria’s foreign exchange market amid sweeping economic reforms.
Under the arrangement, Nigeria agreed to repay the facility through future crude oil deliveries, with an annual interest rate of 11.85 per cent. The transaction was executed through Project Gazelle Funding Ltd., a special purpose vehicle incorporated in the Bahamas, with the NNPC serving as sponsor and crude supplier for loan repayment.
With the approval of Project Gazelle 2, the Federal Government is seeking to improve the terms of the financing arrangement while preserving more crude production for national use and strengthening the country’s external financial position.
