The National Economic Council (NEC) has approved the refinancing of the US$3.3 billion Project Gazelle Pre-Export Finance Facility, paving the way for a new US$4.5 billion Project Gazelle 2 designed to reduce financing costs, strengthen Nigeria’s external reserves and unlock an additional US$3 billion in liquidity for the economy.
The approval was granted at the 159th meeting of the National Economic Council, held virtually on Monday and chaired by Vice President Kashim Shettima.
Under the new arrangement, the Nigerian National Petroleum Company (NNPC) Limited will refinance the outstanding balance of about US$1.5 billion under the original 2023 Project Gazelle facility while securing fresh financing to support the Federal Government’s fiscal obligations and key infrastructure projects.
The Council approved the proposal following a presentation by the Minister of Finance and Coordinating Minister of the Economy, Dr Taiwo Oyedele, which was delivered by the Vice President. Members of the Council endorsed the initiative, citing its potential to improve liquidity and strengthen the nation’s financial position.
Addressing journalists after the meeting, Oyedele, said the refinancing had been negotiated on more favourable terms than the original facility, reducing both the country’s financing burden and the volume of crude oil committed to the arrangement.
According to him, the daily crude oil pledged under the facility will drop from 90,000 barrels per day to about 78,750 barrels per day, representing a 12.5 per cent reduction.
He explained that the revised structure would release an additional 11,250 barrels of crude oil per day to the federation while also lowering NNPC Limited’s crude commitment under the financing arrangement.
Oyedele said the transaction would enable Nigeria to access fresh liquidity at lower cost, free up critical resources for strategic national priorities and reinforce the country’s financing framework.
Meanwhile, Vice President Shettima urged governments at all levels to adopt more responsive, data-driven and scalable social protection policies to confront the growing challenge of multidimensional poverty.
He said the true impact of government policies is reflected in the everyday lives of citizens, from food prices and access to healthcare to educational outcomes, household welfare and investor confidence.
The Vice President charged members of the Council to ensure that every policy decision demonstrates that government remains attentive to the needs of Nigerians.
“Our decisions must assure citizens that their government is paying attention to the pulse of the nation and is resolved to respond with competence, compassion and purpose,” Shettima said.
The approval of Project Gazelle 2 comes as the Federal Government intensifies efforts to improve public finances, boost foreign exchange reserves and create additional fiscal space to support economic reforms and critical infrastructure development.
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