The National Economic Council has approved a $4.5 billion refinancing of Nigeria’s $3.3 billion oil-backed loan, a move the Federal Government says will unlock fresh liquidity for the economy while reducing the volume of crude pledged as collateral.
The decision was taken at the 159th NEC meeting held virtually on Monday and chaired by Vice President Kashim Shettima.
According to a statement by Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications in the Office of the Vice President, the Council endorsed the new facility — named Project Gazelle 2 — following a presentation by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
—What The Deal Changes—
Under the approval, the Nigerian National Petroleum Company Limited will refinance the outstanding balance of approximately $1.5 billion on the original 2023 Project Gazelle facility and secure an additional $3 billion in new funding.
Key terms improved in the refinancing include:
- Lower crude pledge: The volume of crude oil pledged to secure the loan drops from 90,000 barrels per day to about 78,750 bpd — a 12.5% reduction.
- More oil for the federation: The reduction frees up an additional 11,250 barrels of oil per day for the federation to sell directly and retain revenue outside the facility’s terms.
- Better financing terms: Oyedele said the new arrangement was secured on “considerably more favourable terms” than the 2023 deal.
“While accessing additional liquidity on improved terms, the arrangement is freeing up resources for strategic national priorities while strengthening the country’s financing structures,” Oyedele told journalists after the meeting.
Nkwocha said NEC “observed the significance of unlocking additional liquidity for the federation and pledged its support for the actualisation of the initiative.”
—Why It Matters Now—
Project Gazelle was first structured in 2023 as a pre-export finance facility backed by future crude sales. It was designed to provide Nigeria with dollar liquidity to defend the naira and stabilise the foreign exchange market following the Tinubu administration’s unification of exchange-rate windows.
With external reserves under pressure and fiscal demands rising, the refinancing serves two purposes:
– Immediate liquidity: The extra $3 billion will shore up external reserves and support budget implementation, infrastructure, and FX stability.
– Long-term relief: By cutting crude pledged, more oil revenue can flow directly to the federation account, easing pressure on public finances.
The deal also reflects NNPC Ltd’s stronger negotiating position after three years of oil sector reforms aimed at attracting investment from international oil companies and ramping up domestic production.
—Shettima: Link Finance To People’s Welfare—
In his opening remarks, Vice President Shettima urged NEC members to ensure economic decisions translate to tangible relief for citizens.
“Government policies are often heard before they are seen. They speak through the price of food, the condition of hospitals, the records in schools, the strain on families… Every decision we make must assure the citizens that their government is paying attention to the pulse of the nation and is resolved to respond with competence, compassion and purpose,” he said.
He also called for a “responsive, scalable and data-driven social protection policy” to confront multidimensional poverty.
—What Happens Next—
With NEC’s approval, NNPC Ltd can now proceed to close Project Gazelle 2 with lenders. Government officials say proceeds will be channelled toward stabilising the naira, meeting external obligations, and funding priority infrastructure projects under the 2024-2026 budgets.
Economists note that while the refinancing improves Nigeria’s liquidity position, the ultimate test will be how effectively the funds are deployed to ease inflation, create jobs, and improve service delivery.
“Access to cheaper liquidity is good. But Nigerians will judge this by what changes in the market, at the hospital, and in their household budgets,” a senior NEC source said.
Project Gazelle 2 is expected to be finalised in Q3 2026, subject to lender due diligence and board approvals.
