NEC Approves $4.5bn Project Gazelle 2 to Refinance NNPC Facility, Unlock $3bn Liquidity

NEC Approves $4.5bn Project Gazelle 2 to Refinance NNPC Facility, Unlock $3bn Liquidity

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 financing arrangement known as Project Gazelle 2.

The approval was reached at the 159th meeting of the National Economic Council, held virtually on Monday, and is expected to provide additional liquidity for Nigeria while supporting the Federal Government’s fiscal and infrastructure priorities.

Under the new arrangement, NNPC Limited will refinance the outstanding balance of approximately US$1.5 billion from the original 2023 facility, while unlocking an additional US$3 billion in liquidity for the country.

The proposal followed a presentation by the Minister of Finance and Coordinating Minister of the Economy, Dr Taiwo Oyedele, which was presented to Council by the Chairman, Vice President Kashim Shettima.

NEC acknowledged the importance of the initiative in strengthening the Federation’s liquidity position and expressed its support for the successful implementation of the refinancing programme.

Speaking during a press briefing after the meeting, Dr Oyedele explained that Project Gazelle 2 was structured on more favourable terms than the original facility.

One of the major changes is a reduction in the volume of crude oil pledged under the arrangement from 90,000 barrels per day (bpd) to approximately 78,750 bpd, representing a 12.5 per cent reduction.

The Minister explained that the new structure would release an additional 11,250 bpd for the Federation while reducing the volume of crude pledged by NNPC Limited.

According to him, the arrangement would enable Nigeria to access additional liquidity under improved financing terms while freeing up resources for strategic national priorities and strengthening the country’s overall financing framework.

Shettima Calls for Stronger Social Protection

Earlier in his opening remarks, Vice President Kashim Shettima called for a responsive, scalable and data-driven social protection system capable of addressing the multidimensional nature of poverty across Nigeria.

The Vice President stressed that the impact of government policies is ultimately measured by their effect on citizens’ daily lives, including food prices, healthcare, education, household pressures and opportunities for economic advancement.

He urged members of the Council to ensure that their decisions remain responsive to the realities facing Nigerians and demonstrate that government is attentive to the needs and aspirations of citizens.

He said every decision taken by government should reassure Nigerians that their government is “paying attention to the pulse of the nation” and remains committed to responding with competence, compassion and purpose.

The approval of Project Gazelle 2 marks another step in the Federal Government’s efforts to strengthen Nigeria’s financing capacity, improve liquidity management and create greater fiscal space for priority national development programmes.

NEC Approves $4.5bn Project Gazelle 2 to Refinance NNPC Facility, Unlock $3bn Liquidity