NEC okays $3.3bn project Gazelle 2 to refinance loan, boost external reserves

The National Economic Council (NEC) has approved the refinancing of the US$3.3 billion Project Gazelle Pre-Export Finance Facility through a new US$4.5 billion facility named “Project Gazelle 2.”

The decision was taken at the 159th meeting of the Council, held virtually on Monday.

The decision, taken at the meeting chaired by Vice President Senator Kashim Shettima, allows the Nigerian National Petroleum Company Limited (NNPCL) to refinance the outstanding balance of approximately $1.5 billion under the original 2023 facility while unlocking an additional $3 billion in liquidity to strengthen the country’s external reserves and support the government’s ongoing fiscal and infrastructure priorities.

According to a statement by Stanley Nkwocha, media aide to the Vice President, the NEC’s approval followed a presentation by the Minister of Finance, Dr Taiwo Oyedele, which was presented by the Chairman of the Council, Vice President Kashim Shettima, underscoring the importance of the project.

The statement noted that:

“NEC observed the significance of unlocking additional liquidity to the federation, among other benefits, pledging its support for the actualisation of the initiative.”

The Finance Minister, in his presentation, explained that the refinancing has been structured on more favourable terms than the original facility, including a reduction in the volume of pledged crude oil from 90,000 barrels of oil per day (bpd) to approximately 78,750 bpd—a 12.5 percent reduction.

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He noted that under the new arrangement, an additional 11,250 bpd for the federation will be released, while there will be a reduction in the pledged crude volumes by NNPC Limited.

Dr Oyedele added that while accessing additional liquidity on improved terms, the arrangement is freeing up resources for strategic national priorities while strengthening the country’s financing structures.

Earlier, in his opening remarks, Vice President Shettima called for a responsive, scalable, and data-driven social protection policy to tackle multidimensional poverty in Nigeria.

According to him, government policies are often heard before they are seen, speaking through the price of food, the condition of hospitals, records in schools, the strain on families, the confidence of those who invest their labour in the nation’s future, and, very importantly, the ambitions of state governments.

He implored members of the Council to ensure that every decision they make assures the citizens “that their government is paying attention to the pulse of the nation and is resolved to respond with competence, compassion and purpose.”