NEC Approves Refinancing of NNPC’s $3.3bn Project Gazelle to Optimise Cost

Nigeria's National Economic Council (NEC) has approved the refinancing of the Nigerian National Petroleum Company's (NNPC) $3.3 billion 'Project Gazelle' pre-export finance facility. The approval, granted during the 159th NEC meeting, allows for a new $4.5 billion facility, dubbed 'Project Gazelle 2,' which will refinance the outstanding balance of approximately $1.5 billion from the original 2023 facility.

“

The development which formed the outcome of the 159th meeting of NEC) held virtually and followed a presentation by the Minister of Finance, Taiwo Oyedele.

This strategic move is expected to unlock an additional $3 billion in liquidity, bolstering the country's external reserves and supporting the government's ongoing fiscal and infrastructure priorities. Refinancing, in essence, involves replacing an existing debt with a new loan that offers more favorable terms, such as lower interest rates or adjusted repayment periods. The NEC, chaired by Vice President Kashim Shettima, underscored the significance of unlocking additional liquidity for the federation.

Minister of Finance Taiwo Oyedele explained that the new arrangement offers more favorable terms, including a reduction in the volume of crude oil pledged daily from 90,000 barrels per day (bpd) to approximately 78,750 bpd, a 12.5 percent decrease. This reduction will free up an additional 11,250 bpd for the federation, while also reducing the crude volumes pledged by NNPC. Oyedele highlighted that the initiative not only provides access to additional liquidity on improved terms but also frees up resources for strategic national priorities and strengthens the country's financing structures.

“

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

In his opening remarks, Vice President Shettima called for a responsive, scalable, and data-driven social protection policy to address multidimensional poverty in Nigeria. He urged council members to ensure that government decisions reflect an understanding of the nation's pulse and a commitment to responding with competence and compassion. Meanwhile, NNPC has issued further tenders to sell cargoes of its newer crude oil grades, Cawthorne and Bonny Light, as Nigeria seeks to boost production and diversify its export streams.

“

their government is paying attention to the pulse of the nation and is resolved to respond with competence, compassion and purpose.