The National Economic Council (NEC) has approved the refinancing of the US$3.3 billion Project Gazelle Pre-Export Finance Facility with a new US$4.5 billion facility, called Project Gazelle 2.
The approval allows The Nigerian National Petroleum Company Limited (NNPC) to refinance the balance of the original 2023 facility of about US$1.5 billion and unlock an additional US$3 billion liquidity to shore up the country’s external reserves and support the fiscal and infrastructure priorities of the Nigerian Government.
The decision was taken at the 159th meeting of the National Economic Council held virtually Monday.
The Chairman of the Council, Vice President Kashim Shettima, presided over the meeting.
The project received the approval of NEC after a presentation on the strategic importance of the project by the Minister of Finance, Dr Taiwo Oyedele, who was represented by Vice President Shettima.
The Council acknowledged the importance of unlocking additional liquidity for the federation and recommitted to the successful implementation of the initiative.
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Dr Oyedele, who spoke at a press briefing after the meeting, said the refinancing had been structured on more favourable terms than the original facility. “This includes a reduction in the volume of pledged crude oil from 90,000 barrels per day (bpd) to approximately 78,750 bpd, a 12.5 per cent reduction.
The new arrangement, he said, would release an additional 11,250 bpd to the federation while reducing the volume of crude pledged by NNPC Limited.
According to the minister, the refinancing will increase liquidity on better terms, release resources for strategic national priorities and strengthen the structure of financing in the country.
Earlier, in his opening remarks, Vice President Shettima had called for a responsive, scalable and data-driven social protection policy to address multidimensional poverty in Nigeria.
“Government policies are often felt before they are seen, showing up in the prices of food, the state of hospitals, the results in schools, the pressures on families, the confidence of investors, and the ambitions of state governments,” he said.
He urged members of the Council to ensure all decisions reassure Nigerians that their government is in tune with the country’s needs and is committed to responding with competence, compassion and purpose.
