The National Economic Council (NEC) has approved the refinancing of the 3.3 billion-dollar Project Gazelle Pre-Export Finance Facility through a new 4.5 billion-dollar facility named “Project Gazelle 2”.
The News Agency of Nigeria (NAN) reports that the approval was made during the 159th meeting of the National Economic Council (NEC) held virtually on Monday.
The approval allows NNPC Ltd. to refinance the outstanding balance of 1.5 billion dollars under the original 2023 facility.
It will also unlock an additional three billion dollars in liquidity to strengthen the country’s external reserves and support the government’s ongoing fiscal and infrastructure priorities.
Briefing newsmen after the meeting, the Minister of Finance, Dr Taiwo Oyedele, explained that the refinancing has been structured on more favourable terms than the original facility.
According to him, this includes a reduction in the volume of pledged crude oil from 90,000 barrels of oil per day (bpd) to approximately 78,750 bpd – a 12.5 per cent reduction.
He noted that under the new arrangement, an additional 11,250 bpd for the federation would be released, while NNPC Limited’s pledged crude volumes would be reduced.
Oyedele added that while accessing additional liquidity on improved terms, the arrangement was freeing up resources for strategic national priorities while strengthening the country’s financing structures.
Earlier, Vice President Kashim Shettima called for a responsive, scalable, and data-driven social protection policy to tackle multidimensional poverty in Nigeria.
Shettima said government policies were often heard before seen.
He implored members of the council to ensure that every decision they make assures the citizens that the government was paying attention to the pulse of the nation.