Nigeria’s National Economic Council on Monday approved the refinancing of NNPC Limited’s $3.3 billion oil-backed pre-export finance facility through a new $4.5 billion arrangement aimed at strengthening the country’s external reserves and freeing up funds for infrastructure, the presidency said late on Monday.
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The new facility dubbed “Project Gazelle 2”, will refinance approximately $1.5 billion outstanding under the original 2023 deal while unlocking an additional $3 billion in liquidity, the presidency said in a statement.
The refinancing comes as one of Africa’s largest economies 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.
Finance minister Taiwo Oyedele told the NEC that 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.
This would free up resources for strategic national priorities while improving Nigeria’s financing structures.
Vice President Kashim Shettima, who chairs the NEC, said government policies were ultimately measured by their impact on food prices, healthcare, education and household welfare, the presidency statement added.
Writing by MacDonald Dzirutwe. Editing by Mark Potter
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