NEC Okays Refinancing of $3.3bn Project Gazelle to Unlock $3bn Liquidity

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 facility, known as “Project Gazelle 2”, to reduce costs and unlock additional liquidity for the country.

The approval was reached during the 159th meeting of the NEC held virtually on Monday, according to a statement issued by the Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha.

The new arrangement will allow the Nigerian National Petroleum Company Limited (NNPC Ltd) to refinance the outstanding balance of about $1.5 billion under the original 2023 facility while providing an additional $3 billion in liquidity to strengthen the country’s external reserves and support government’s fiscal and infrastructure priorities.

The decision followed a presentation by the Minister of Finance and Coordinating Minister of the Economy, Dr Taiwo Oyedele, which was presented to the Council by Vice President Kashim Shettima, who chairs NEC.

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The Council acknowledged the importance of the refinancing initiative, particularly its potential to increase liquidity available to the federation, and pledged support for the successful implementation of the project.

Speaking after the meeting, Oyedele said the refinancing arrangement was structured on more favourable terms compared with the original facility, including a reduction in the volume of crude oil pledged as repayment.

He explained that the pledged crude oil volume would be reduced from 90,000 barrels per day (bpd) to approximately 78,750 bpd, representing a 12.5 per cent reduction.

According to him, the adjustment would release an additional 11,250 bpd for the federation while reducing the crude volume committed by NNPC Ltd.

The Finance Minister added that the new structure would provide additional liquidity while freeing resources for strategic national priorities and strengthening Nigeria’s financing framework.

Meanwhile, Vice President Shettima has called for the development of a responsive, scalable and data-driven social protection policy aimed at tackling multidimensional poverty in Nigeria.

Speaking during the NEC meeting, Shettima said government policies must address the realities faced by citizens, noting that their impact is reflected in food prices, healthcare conditions, education standards and the confidence of investors and workers.

According to him, government decisions must demonstrate awareness of the challenges confronting Nigerians and provide practical solutions.

He urged members of the Council to ensure that their decisions reassure citizens “that their government is paying attention to the pulse of the nation and is resolved to respond with competence, compassion and purpose.”

Shettima stressed the need for policies that would provide effective support for vulnerable Nigerians while strengthening economic opportunities across the country.