Nigerian National Economic Council approves $4.5 billion refinancing of oil-backed loan
The Nigerian National Economic Council has approved the refinancing of the $3.3 billion Project Gazelle Pre-Export Finance Facility with a new $4.5 billion facility, named Project Gazelle 2. This decision, made at the 159th NEC meeting chaired by Vice President Kashim Shettima, allows the Nigerian National Petroleum Company Limited to refinance an outstanding balance of approximately $1.5 billion from the original 2023 facility and unlock an additional $3 billion in liquidity. This new liquidity aims to strengthen Nigeria’s external reserves and support fiscal and infrastructure priorities. According to the Minister of Finance and Coordinating Minister of the Economy, Dr. Taiwo Oyedele, the refinancing offers more favorable terms, including a 12.5 percent reduction in the volume of crude oil pledged, from 90,000 barrels per day to approximately 78,750 barrels per day. This reduction will free up an additional 11,250 barrels of oil per day for the federation to sell. Vice President Shettima also emphasized the need for a responsive social protection policy to address poverty and urged Council members to ensure decisions reflect the government's attentiveness to citizens' daily struggles. The original Project Gazelle facility was established in 2023 to provide dollar liquidity to stabilize the naira and support the foreign exchange market.
