The National Economic Council (NEC) has approved the refinancing of the Nigerian National Petroleum Company (NNPC) Limited's $3.3 billion Project Gazelle pre-export finance facility through a new $4.5 billion arrangement known as Project Gazelle 2.
The decision allows NNPC to refinance the outstanding balance of about $1.5 billion from the original 2023 facility while unlocking an additional $3 billion in liquidity to bolster Nigeria's external reserves and support the Federal Government's fiscal and infrastructure programmes.
The approval was granted during the 159th meeting of the council, held virtually on Monday and chaired by Vice President Kashim Shettima. The proposal was presented by the Minister of Finance, Taiwo Oyedele.
Council members backed the refinancing plan, describing it as a strategic initiative that would improve the federation's financial position by providing additional liquidity under more favourable terms.
Speaking to journalists after the meeting at the Presidential Villa in Abuja, Oyedele said the new financing arrangement had been negotiated on significantly better terms than the original agreement.
According to him, one of the major gains is the reduction in the volume of crude oil pledged under the facility from 90,000 barrels per day to about 78,750 barrels per day, representing a 12.5 per cent decrease.
He explained that the revised structure would free up an additional 11,250 barrels of crude oil per day for the federation while reducing NNPC's crude commitment under the financing arrangement.
The minister said the refinancing would not only provide fresh liquidity but also strengthen Nigeria's financing framework and release additional resources for strategic national development priorities.
Refinancing involves replacing an existing loan with a new one that offers more favourable conditions, including lower financing costs, improved repayment terms or both.
Earlier in the meeting, Vice President Shettima called for the adoption of responsive, scalable and data-driven social protection policies to address multidimensional poverty across the country.
He noted that the impact of government policies is reflected in the prices of essential commodities, the quality of healthcare and education, the welfare of families, investor confidence and the performance of state governments.
Shettima urged members of the council to ensure that every decision taken demonstrates government's commitment to responding effectively to the needs of Nigerians with competence, compassion and purpose.
Meanwhile, NNPC has issued fresh tenders for the sale of September cargoes of its latest crude oil grade, Cawthorne, alongside Bonny Light crude.
According to tender documents seen by Reuters, the company is offering a 950,000-barrel cargo of Cawthorne scheduled for loading between September 21 and 22, as well as a 950,000-barrel cargo of Bonny Light for loading between September 30 and October 1.
NNPC commenced exports of Cawthorne crude in March, adding it to recently introduced grades such as Nembe and Utapate as part of efforts to increase crude production, diversify export streams and improve earnings after years of underinvestment, crude oil theft and operational disruptions.
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