The National Economic Council (NEC) has approved a new $4.5 billion Project Gazelle 2 financing facility to refinance the existing $3.3 billion Project Gazelle Pre-Export Finance Facility and provide additional funds to support the country’s economy.
The decision was taken on Monday during the 159th NEC meeting, held virtually and chaired by Vice President Kashim Shettima.
The development was disclosed in a statement issued by the Senior Special Assistant to the President on Media and Communications in the Office of the Vice President, Stanley Nkwocha.
According to the statement, the approval will enable the Nigerian National Petroleum Company Limited (NNPCL) to refinance the outstanding balance of about $1.5 billion under the original 2023 financing arrangement, while also unlocking an extra $3 billion in fresh liquidity to boost Nigeria’s external reserves and support key fiscal and infrastructure projects.
The Council welcomed the initiative, noting that the additional funding would strengthen the federation’s finances and expressing support for its implementation.
Speaking with journalists after the meeting, the Minister of Finance and Coordinating Minister of the Economy, Dr. Taiwo Oyedele, said the new financing package was negotiated on more favourable terms than the previous agreement.
He explained that one of the major improvements was a reduction in the amount of crude oil committed as collateral for the loan.
“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 of oil per day to approximately 78,750 barrels of oil per day, a 12.5 per cent reduction.”
Oyedele said the revised arrangement would free up an additional 11,250 barrels of crude oil per day, allowing the federation to sell more crude outside the financing agreement and generate more revenue.
“Under the new arrangement, an additional 11,250 barrels of oil per day for the federation will be released, while there will be a reduction in the pledged crude volumes by NNPC Limited,” he said.
