Nigeria Extends Crude Oil Repayment Schedule to 2030

The National Economic Council, chaired by Vice President Kashim Shettima, approved a refinancing plan for Nigeria's $3.3bn Project Gazelle oil-backed financing arrangement. This decision reduces the daily crude oil commitment from 90,000 barrels to 78,750 barrels, potentially extending the repayment timeline by approximately six months, shifting the completion date from December 2029 to around June 2030.

The refinancing aims to ease pressure on crude oil allocations while maintaining Nigeria's debt obligations. However, Kelvin Emmanuel, Managing Partner of The Energy Consulting Practice, criticized the proposed Project Gazelle II arrangement as unnecessary and financially disadvantageous, raising concerns about its transparency.

The Nigerian National Petroleum Company Limited had previously secured a $3.3bn emergency loan from Afreximbank to address crude oil obligations, with repayment set to begin in June 2024. The refinancing is expected to improve Nigeria's fiscal flexibility and increase the volume of crude available for domestic use and export.