Economic Council approves $4.5b crude oil backed loan refinance for NNPC
By Emeka Anaeto
The National Economic Council (NEC) has approved a new $4.5 billion refinancing arrangement for NNPC Limited’s $3.3 billion oil-backed pre-export finance facility.
According to a report from Bloomberg, citing sources from the Presidency, the refinancing aims to bolster Nigeria’s external reserves and allocate funds for infrastructure development.
The initiative, referred to as “Project Gazelle 2,” will refinance approximately $1.5 billion that remains outstanding from the original 2023 agreement while unlocking an additional $3 billion in liquidity. The report notes that this refinancing is part of Nigeria’s strategy to strengthen foreign reserves and address fiscal priorities amid ongoing pressure on the naira and ongoing efforts to attract foreign investment through economic reforms initiated by President Bola Tinubu’s administration.
Finance Minister Taiwo Oyedele informed the NEC that the new terms are more favorable than those of the original facility. Notably, the pledged crude oil volumes will be reduced by 12.5%, from 90,000 barrels per day to around 78,750 barrels per day. This adjustment is expected to free up resources for key national priorities while enhancing Nigeria’s financing structures.
Vice President Kashim Shettima, who chairs the NEC, stated that the effectiveness of government policies will ultimately be assessed based on their impact on food prices, healthcare, education, and household welfare.
