NEC Approves $4.5bn Refinancing Deal for Oil-Backed Loan

The National Economic Council has approved a $4.5 billion refinancing agreement for the $3.3 billion Project Gazelle Pre-Export Finance Facility. The new agreement, designated as Project Gazelle 2, was endorsed during the council’s 159th virtual meeting, presided over by Vice President Kashim Shettima, following a presentation by the Minister of Finance and Coordinating Minister of the Economy, Dr. Taiwo Oyedele.

Under the terms of the deal, the Nigerian National Petroleum Company Limited will refinance an outstanding balance of approximately $1.5 billion from the original 2023 loan while unlocking $3 billion in additional liquidity to strengthen foreign exchange reserves and fund strategic infrastructure priorities.

The restructured agreement significantly improves on the original facility by securing a 12.5% reduction in pledged crude oil volumes—lowering the daily commitment from 90,000 barrels per day (bpd) to approximately 78,750 bpd. This adjustment releases an extra 11,250 bpd of crude for the federation to sell independently, maximizing national revenue retainment.

Initially established in 2023 to stabilize the foreign exchange market and support the naira amid currency reforms, the facility’s successful renegotiation reflects NNPC Limited’s improved market position following recent oil sector reforms designed to attract international investment and boost domestic production capacity.