Key points
- The National Economic Council (NEC) has approved the refinancing of NNPC Limited’s $3.3 billion Project Gazelle facility through a new $4.5 billion financing arrangement.
- The new facility, known as Project Gazelle 2, will refinance the outstanding $1.5 billion balance of the original loan while providing an additional $3 billion in liquidity.
- The refinancing reduces pledged crude oil from 90,000 barrels per day to about 78,750 barrels per day, freeing up 11,250 barrels per day for the federation.
- Finance Minister Taiwo Oyedele said the new arrangement offers more favourable financing terms and supports strategic national priorities.
- Vice President Kashim Shettima called for stronger, data-driven social protection policies to address multidimensional poverty.
Main Story
The National Economic Council (NEC) has approved the refinancing of NNPC Limited’s $3.3 billion Project Gazelle pre-export finance facility through a new $4.5 billion financing arrangement, aimed at improving the country’s financing structure and unlocking additional liquidity for the federation.
The decision was reached during the 159th meeting of the National Economic Council, held virtually and chaired by Vice President Kashim Shettima.
Under the new arrangement, known as Project Gazelle 2, the outstanding balance of approximately $1.5 billion from the original 2023 facility will be refinanced, while an additional $3 billion will be made available to strengthen Nigeria’s external reserves and support the Federal Government’s fiscal and infrastructure priorities.
Explaining the decision after the meeting, the Minister of Finance, Taiwo Oyedele, said the refinancing had been negotiated on more favourable terms than the original facility.
According to him, the agreement reduces the volume of crude oil pledged under the financing arrangement from 90,000 barrels per day to approximately 78,750 barrels per day, representing a 12.5 per cent reduction.
The revised structure will also release an additional 11,250 barrels per day for the federation while enabling the government to access fresh liquidity at improved financing terms.
Oyedele said the arrangement would strengthen Nigeria’s financing framework while freeing additional resources for strategic national development priorities.
Earlier, Vice President Shettima urged members of the council to adopt responsive, scalable and data-driven social protection policies capable of addressing multidimensional poverty across the country.
He emphasised that government policies are ultimately reflected in citizens’ daily experiences, including food prices, healthcare delivery, education outcomes, family welfare and investor confidence, urging policymakers to ensure their decisions address the country’s pressing socioeconomic realities.
Meanwhile, NNPC has also continued efforts to expand its crude oil marketing activities by issuing fresh tenders for the sale of September cargoes of its newly introduced Cawthorne crude grade and Bonny Light.
According to tender documents, the company is offering 950,000 barrels each of Cawthorne crude, scheduled for loading on September 21–22, and Bonny Light crude, expected to load between September 30 and October 1.
The move comes as Nigeria seeks to increase crude oil production and diversify its export streams following years of oil theft, pipeline vandalism, underinvestment and operational disruptions.
The Issues
- Nigeria continues to rely on innovative financing mechanisms to support fiscal stability and infrastructure development.
- Managing crude-backed loans while reducing pledged production remains critical to preserving future oil revenues.
- Sustaining higher crude oil production is essential to meeting financing obligations and improving foreign exchange earnings.
- Global oil market volatility and geopolitical tensions could affect crude prices, export revenues and future financing costs.
- Expanding crude export grades requires sustained investment in production infrastructure and operational efficiency.
What’s Being Said
Taiwo Oyedele, Minister of Finance
“The refinancing has been structured on more favourable terms than the original facility, including reducing pledged crude oil from 90,000 barrels per day to about 78,750 barrels per day.”
“The arrangement releases an additional 11,250 barrels per day for the federation while providing additional liquidity on improved terms and freeing resources for strategic national priorities.”
Kashim Shettima, Vice President and Chairman, National Economic Council
“Every decision we make must assure Nigerians that their government is paying attention to the pulse of the nation and is resolved to respond with competence, compassion and purpose.”
“We must pursue responsive, scalable and data-driven social protection policies capable of tackling multidimensional poverty.”
What’s Next
The Federal Government and NNPC are expected to conclude the implementation of Project Gazelle 2, enabling the refinancing of the existing facility and the disbursement of fresh liquidity.
Attention will also shift to maintaining higher crude oil production, optimising the country’s crude-backed financing arrangements and strengthening external reserves while monitoring developments in the global oil market.
Bottom Line
NEC’s approval of the $4.5 billion Project Gazelle 2 refinancing marks a significant step in Nigeria’s strategy to optimise debt financing, improve fiscal flexibility and unlock additional liquidity while reducing the volume of crude oil committed under existing financing arrangements.
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