NEC gives green light for $3.3bn Project Gazelle refinancing

The National Economic Council (NEC) has approved a refinancing plan for the $3.3 billion Project Gazelle Pre-Export Finance Facility. This will be done through a new $4.5 billion facility called ‘Project Gazelle 2’.

This decision came during the 159th meeting of the NEC, which took place online on Monday. The council noted the importance of unlocking more funds for the federation, among other benefits.

The council also promised to support this new initiative.

This approval allows NNPC Limited to refinance about $1.5 billion still owed from the original 2023 facility. It will also unlock an extra $3 billion to boost the country’s external reserves and support ongoing government projects focused on fiscal and infrastructure needs.

After the meeting, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, spoke at a press briefing. He explained that the refinancing has better terms than the original deal. This includes cutting the amount of crude oil pledged from 90,000 barrels per day (bpd) to about 78,750 bpd, which is a 12.5 percent reduction.

He noted that this new deal will free up an additional 11,250 bpd for the federation. At the same time, NNPC Limited will reduce the volume of crude oil it has pledged.

The minister added that this plan not only provides more funds under better terms but also helps to free up resources for important national projects. It will also strengthen the country’s financial systems.