The National Economic Council (NEC) has approved the refinancing of the Nigerian National Petroleum Company (NNPC) Limited’s oil-backed loan, replacing the existing $3.3 billion Project Gazelle facility with a new $4.5 billion financing arrangement known as Project Gazelle 2.
The approval is expected to help the NNPC refinance the outstanding $1.5 billion balance on the original facility secured in 2023, while unlocking an additional $3 billion in liquidity to strengthen Nigeria’s external reserves and support key government fiscal and infrastructure programmes.
The decision was reached during the 159th National Economic Council meeting, held virtually on Monday, according to a statement issued by Stanley Nkwocha, spokesperson to Vice-President Kashim Shettima, who chaired the meeting.
The approval followed a presentation by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, which highlighted the benefits of the refinancing arrangement.
According to the statement, NEC welcomed the initiative, noting that it would provide additional liquidity for the federation while improving the country’s financing structure.
Speaking after the meeting, Oyedele explained that the new financing package was negotiated on more favourable terms than the original agreement signed in 2023.
One of the major improvements, he said, is the reduction in the volume of crude oil pledged under the facility. Under the previous arrangement, 90,000 barrels of crude oil per day were committed to servicing the loan, but the new agreement reduces that figure to approximately 78,750 barrels per day, representing a 12.5 percent reduction.
The minister added that the new structure would release an additional 11,250 barrels of crude oil per day back to the federation while reducing NNPC’s crude repayment obligations.
According to Oyedele, the refinancing will not only provide fresh liquidity but also free up valuable resources that can be redirected toward national development priorities while strengthening Nigeria’s overall financing framework.
During the meeting, Vice-President Kashim Shettima also called for a more responsive, data-driven and scalable social protection system to tackle multidimensional poverty across the country.
He stressed that government policies must translate into meaningful improvements in the daily lives of Nigerians through lower food prices, better healthcare, quality education, improved family welfare and stronger investor confidence.
Shettima urged members of the council to ensure that every decision taken demonstrates government’s commitment to addressing the needs of citizens with competence, compassion and purpose.
The original Project Gazelle financing arrangement was secured by the NNPC on August 16, 2023, through the African Export-Import Bank (Afreximbank) as a $3.3 billion crude-backed pre-export finance facility.
The loan was introduced to support the Federal Government’s fiscal and monetary reforms, stabilise the naira and improve liquidity in Nigeria’s foreign exchange market.
Under the arrangement, Project Gazelle Funding Ltd (PGFL), a special purpose vehicle incorporated in the Bahamas, serves as the borrower, while the NNPC repays the facility through crude oil deliveries.
The company was also required to prepay future royalties and taxes to the Federal Government as part of the financing agreement.
The approval of Project Gazelle 2 marks another major step in the government’s efforts to strengthen public finances, improve foreign exchange reserves and create additional fiscal space for economic development.
