NEC approves $4.5bn Project Gazelle 2 to refinance $3.3bn facility

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 _Project Gazelle 2_ initiative aimed at improving Nigeria’s financial position and unlocking additional liquidity for the economy.

The approval was granted during the 159th NEC meeting held virtually on Monday and chaired by Vice President Kashim Shettima.

*Facility to strengthen reserves and fund infrastructure*

The new facility will enable the Nigerian National Petroleum Company Limited, NNPC Ltd, to refinance the outstanding balance of about $1.5 billion under the original 2023 agreement.

It will also unlock an additional $3 billion to strengthen Nigeria’s external reserves and support critical infrastructure and fiscal priorities.

The proposal, presented by the Minister of Finance, Dr. Taiwo Oyedele, received the Council’s approval after members acknowledged its potential to improve the country’s financial stability and increase available resources.

*Refinancing secured on better terms*

Speaking after the meeting, Dr. Oyedele said the refinancing was negotiated on better terms than the previous arrangement.

“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,” he said.

He added that the new agreement would free up additional crude oil for the federation while improving Nigeria’s financing structure.

“While accessing additional liquidity on improved terms, the arrangement is freeing up resources for strategic national priorities while strengthening the country’s financing structure.”

*Shettima seeks stronger social protection*

Earlier, Vice President Shettima called for a responsive, scalable and data-driven social protection policy to tackle multidimensional poverty across the country.

He urged members of the Council to ensure that government policies translate into real improvements in the lives of Nigerians, noting that citizens judge governance through the cost of living, healthcare, education and economic opportunities.

Shettima also charged members of the Council to make decisions that reassure Nigerians that the government remains committed to addressing their challenges with competence, compassion and purpose.