Nigeria's National Economic Council has approved the refinancing of the country's $3.3bn Project Gazelle pre-export finance facility through a new, larger arrangement known as Project Gazelle 2, valued at $4.5bn. The decision was one of the major resolutions reached at the 159th meeting of the Council, which was held virtually and chaired by Vice President Kashim Shettima.
The original Project Gazelle facility was entered into in 2023 by NNPC Limited, the national oil company. Under that arrangement, NNPC secured a $3.3bn oil-backed loan, for which it committed 90,000 barrels of crude oil per day as collateral. A large part of that facility has since been repaid, but a balance remains outstanding.
According to the terms presented to the Council, the new $4.5bn Project Gazelle 2 facility will allow NNPC Limited to refinance the roughly $1.5bn that is still outstanding under the original 2023 facility. Beyond clearing that balance, the new structure is designed to unlock an additional $3bn in liquidity for the country.
That extra liquidity, the government says, is intended to strengthen Nigeria's external reserves and to support the ongoing fiscal and infrastructure priorities of the administration. Officials framed the move as a step towards improving fiscal efficiency and expanding the fiscal space available to the federation.
One of the most significant features of the new deal is a reduction in the amount of crude oil that NNPC must pledge as collateral. The volume of pledged crude has been cut from 90,000 barrels per day to about 78,750 barrels per day, a decrease of 12.5 per cent, which frees up an additional 11,250 barrels per day for the federation.
The approval followed a presentation by the Minister of Finance, Taiwo Oyedele, who said the new facility had been negotiated on more favourable terms than the original arrangement, including the reduced crude oil commitment. Supporters of the deal argued that it would ultimately work to the benefit of the Nigerian people through a healthier fiscal position.
Presenting the wider case for the refinancing, officials said the project is expected to create jobs, retain foreign exchange and reduce imports, while also supporting faster access to electricity across the country. The Council's endorsement now clears the way for NNPC Limited to proceed with the $4.5bn Project Gazelle 2 facility.