By Ukumbi Afrika Abuja – Nigeria's National Economic Council (NEC) has approved the refinancing of NNPC Limited's $3.3 billion oil-backed pre-export finance facility through a new $4.5 billion funding arrangement, a move designed to strengthen the country's foreign exchange reserves and unlock additional funding for infrastructure projects.
The presidency said the new facility, known as Project Gazelle 2, will refinance the remaining $1.5 billion outstanding under the original 2023 agreement while providing an additional $3 billion in fresh liquidity.
The refinancing forms part of the government's broader strategy to reinforce external reserves, support fiscal priorities, and improve investor confidence as Africa's largest oil producer continues implementing economic reforms under President Bola Tinubu.
According to the presidency, Finance Minister Taiwo Oyedele told the NEC that the revised financing terms are more favourable than those agreed under the original facility. As part of the restructuring, the volume of crude oil pledged as security will be reduced by 12.5%, falling to about 78, 750 barrels per day from 90, 000 barrels per day.
The reduction is expected to free up additional crude resources for national development priorities while improving Nigeria's overall financing structure.
Vice President Kashim Shettima, who chairs the National Economic Council, said the success of government policies should ultimately be measured by their impact on citizens' daily lives, including food affordability, healthcare, education and household welfare.
The refinancing comes as Nigeria seeks to stabilise the naira, strengthen foreign exchange reserves and create more fiscal space to finance infrastructure and economic growth.
Source: Reuters
Reporting: MacDonald Dzirutwe
Writing: MacDonald Dzirutwe
Editing : Mark Potter