The National Economic Council (NEC) has approved the refinancing of the $3.3 billion Project Gazelle Pre-Export Finance Facility through a new $4.5 billion financing arrangement, Project Gazelle 2, aimed at reducing financing costs, unlocking fresh liquidity and strengthening Nigeria’s external reserves.
The approval will enable the Nigerian National Petroleum Company (NNPC) Limited to refinance the outstanding balance of about $1.5 billion under the original 2023 facility, while providing an additional $3 billion in liquidity to support the Federal Government’s fiscal and infrastructure priorities.
The decision was reached at the 159th meeting of the National Economic Council, held virtually on Monday and chaired by Vice President Kashim Shettima.
NEC’s approval followed a presentation by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, on the proposed refinancing arrangement.
Council members endorsed the initiative, citing its potential to optimise financing costs, improve fiscal flexibility and enhance the Federation’s liquidity position.
Briefing newsmen after the meeting, the minister explained that the refinancing had been negotiated on more favourable terms than the original facility, including a reduction in the volume of pledged crude oil 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 to the Federation, while reducing NNPC Limited’s crude oil pledge obligations.
According to him, the new arrangement will not only provide additional liquidity on improved terms but also free up resources for strategic national priorities and strengthen Nigeria’s overall financing framework.
Earlier, in his opening remarks, Vice President Shettima called for a responsive, scalable and data-driven social protection system to address multidimensional poverty across the country.
He noted that government policies are often felt by citizens before they are fully understood, manifesting in the prices of food, the quality of healthcare, learning outcomes in schools, the pressures on families, investor confidence and the development aspirations of state governments.
The Vice President urged members of the Council to ensure that every decision taken reassures Nigerians that government remains attentive to their concerns and is committed to responding with “competence, compassion and purpose.”
He stressed that strengthening social protection and improving policy implementation were critical to reducing poverty and ensuring that the benefits of economic reforms reached vulnerable households across the country.
