Economic Council approves $4.5b crude oil backed loan refinance for NNPC

Nigeria's National Economic Council (NEC) has greenlit a significant financial maneuver, approving the refinancing of NNPC Limited's $3.3 billion oil-backed pre-export finance facility. The new arrangement, valued at $4.5 billion, is designed to bolster the nation's external reserves and generate funds for infrastructure development.

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the refinancing comes as Nigeria seeks to shore up its foreign reserves and fund fiscal priorities amid persistent pressure on the naira currency and efforts to attract foreign investment through economic reforms launched by President Bola Tinubu’s administration

Dubbed "Project Gazelle 2," the facility will not only refinance approximately $1.5 billion outstanding from the original 2023 deal but also unlock an additional $3 billion in liquidity. This move comes as Nigeria seeks to stabilize its foreign reserves and attract foreign investment through economic reforms initiated by President Bola Tinubu's administration, particularly amid persistent pressure on the naira currency.

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the new terms of the facility were more favourable than the original facility, with pledged crude oil volumes cut 12.5% to roughly 78,750 barrels per day from 90,000 bpd.

Finance Minister Taiwo Oyedele informed the NEC that the new terms are more advantageous than the previous ones. Pledged crude oil volumes have been reduced by 12.5%, from 90,000 barrels per day to roughly 78,750 barrels per day. This adjustment aims to free up resources for strategic national priorities while enhancing Nigeria's financing structures.

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This would free up resources for strategic national priorities while improving Nigeria’s financing structures.

Vice President Kashim Shettima, who chairs the NEC, emphasized that government policies are ultimately judged by their impact on citizens' welfare, including food prices, healthcare, and education. The approval signals a strategic effort to improve the country's financial standing and support its economic objectives.

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government policies were ultimately measured by their impact on food prices, healthcare, education and household welfare