NEC Approves $4.5bn Refinancing of Oil-Backed Loan

On Monday, during the 159th meeting of the National Economic Council (NEC), chaired by Vice President Kashim Shettima, a $4.5bn refinancing of the $3.3bn Project Gazelle Pre-Export Finance Facility was approved. This refinancing will enable the Nigerian National Petroleum Company Limited to address an outstanding balance of approximately $1.5bn from the original 2023 facility while providing an additional $3bn in liquidity.

The new arrangement, presented by Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, features significantly more favorable terms, including a reduction in the pledged crude oil from 90,000 barrels per day to approximately 78,750 barrels per day. This change allows for an additional 11,250 barrels per day to be available for the federation, enhancing revenue opportunities.

Oyedele characterized the refinancing as a dual achievement, improving liquidity access and strengthening Nigeria's financing structure. Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, provided details of the approval in a statement.