NEC Gives Nod to Gazelle Refinancing, Opening Access to $3 Billion Liquidity

The National Economic Council (NEC) has approved a refinancing of the US$3.3 billion Project Gazelle Pre-Export Finance Facility with a new US$4.5 billion facility, called Project Gazelle 2.

The approval enables The Nigerian National Petroleum Company Limited (NNPC) to refinance the outstanding balance of about US$1.5 billion under the original 2023 facility and unlock an additional US$3 billion liquidity to shore up the country’s external reserves and support the fiscal and infrastructure priorities of the Nigerian Government.

The decision was made at the National Economic Council’s 159th meeting, which was held virtually Monday.

The meeting was presided over by the Chairman of the Council, Vice President Kashim Shettima.

The approval by NEC followed a presentation by the Minister of Finance, Dr Taiwo Oyedele, delivered on his behalf by Vice President Shettima, on the strategic importance of the project.

The Council recognised the importance of unlocking additional liquidity for the federation and reiterated its commitment to the successful implementation of the initiative.

Speaking at a press briefing after the meeting, Dr Oyedele said the refinancing had been structured on more favourable terms than the original facility. “This includes a reduction in the volume of pledged crude oil from 90,000 barrels per day (bpd) to approximately 78,750 bpd, a 12.5 per cent reduction.

The new arrangement, he explained, would release an additional 11,250 bpd to the federation while reducing the volume of crude pledged by NNPC Limited.

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The refinancing, according to the minister, would bring additional liquidity on better terms, free up resources for strategic national priorities and strengthen the country’s financing structure.

Earlier, in his opening remarks, Vice President Shettima had called for a responsive, scalable and data-driven social protection policy to address multidimensional poverty in Nigeria.

He said government policies are often felt before they are seen, showing up in the prices of food, the state of hospitals, the results in schools, the pressures on families, the confidence of investors, and the ambitions of state governments.

He called on members of the Council to ensure that all decisions reassure Nigerians that their government is in tune with the nation’s needs and determined to respond with competence, compassion and purpose.