Nigeria’s National Economic Council (NEC) has approved a $4.5 billion refinancing package for the Nigerian National Petroleum Company (NNPC) Limited’s oil-backed financing facility.
The move is aimed at reducing financing costs, strengthening external reserves and unlocking fresh liquidity for the economy.
The new arrangement, known as Project Gazelle 2, will refinance the outstanding $1.5 billion balance of the original $3.3 billion pre-export finance facility secured in 2023 while providing an additional $3 billion in funding to support the country’s fiscal and infrastructure priorities.
The approval was granted during the 159th meeting of the National Economic Council, chaired by Vice President Kashim Shettima, following a presentation by Finance Minister Taiwo Oyedele on the benefits of the refinancing package.
A key feature of the new facility is a reduction in the volume of crude oil pledged as collateral. Under the revised terms, pledged crude will decline from 90,000 barrels per day to about 78,750 barrels per day, a 12.5% reduction. The change will release an additional 11,250 barrels of crude oil per day for the federation to sell outside the financing arrangement, boosting potential oil revenue.
Oyedele said the refinancing had been negotiated on more favourable terms than the original facility, enabling the government to secure additional liquidity while improving Nigeria’s overall financing structure. He added that the arrangement would free up resources for strategic national priorities without increasing the country’s crude-backed obligations.
Project Gazelle was introduced in 2023 as a crude oil-backed financing programme designed to provide dollar liquidity, support the naira and improve foreign exchange stability during a period of sweeping economic reforms. The refinancing extends that strategy while reducing the amount of future oil production committed to servicing the loan.
The latest approval comes as Nigeria seeks to improve its fiscal position amid volatile oil prices and growing financing needs. By securing cheaper funding and freeing more crude oil for commercial sales, the government hopes to strengthen external reserves, improve cash flow and support ongoing infrastructure investment.
Economists said the refinancing could improve Nigeria’s liquidity position and reduce financing pressure in the short term. However, they noted that its long-term impact will depend on sustained growth in oil production, prudent use of the additional funds and continued reforms to strengthen public finances.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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