NEC approves refinancing of $3.3bn project gazelle to optimise cost, unlock additional liquidity

……As  Shettima demands a responsive social protection policy to end poverty

The National Economic Council (NEC) on Monday approved the refinancing of the US$3.3 billion Project Gazelle Pre-Export Finance Facility through a new US$4.5 billion facility named “Project Gazelle 2”.

Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, office of the Vice President, in a statement on Monday, said the approval allows NNPC Limited to refinance the outstanding balance of approximately $1.5 billion under the original 2023 facility, while unlocking an additional $3 billion in liquidity to strengthen the country’s external reserves, support ongoing fiscal and infrastructure priorities of the government.

The approval was part of the decisions reached at the 159th meeting of the National Economic Council (NEC) held virtually on Monday.

Taiwo Oyedele,  Coordinating Minister of the Economy and Minister of Finance, had made a presentation to the Council before the approval, with Vice President Kashim Shettima underscoring the importance of the project.

The statement revealed that NEC observed the significance of unlocking additional liquidity to the federation, among other benefits, pledging its support for the actualisation of the initiative.

Speaking at a press briefing after the meeting, the finance minister explained that the refinancing has been structured on more favourable terms than the original facility, including a reduction in the volume of pledged crude oil from 90,000 barrels of oil per day (bpd) to approximately 78,750 bpd – a 12.5 per cent reduction.

He noted that under the new arrangement, an additional 11,250 bpd for the federation will be released, while there will be a reduction in the pledged crude volumes by NNPC Limited.

Oyedele added that while accessing additional liquidity on improved terms, the arrangement is freeing up resources for strategic national priorities while strengthening the country’s financing structures.

Earlier in his opening remarks, Vice President Shettima called for a responsive, scalable, and data-driven social protection policy to tackle multidimensional poverty in Nigeria.

According to him, government policies are often heard before they are seen, speaking through the price of food, condition of hospitals, records in schools, strain on families, the confidence of those who invest their labour in the nation’s future, and, very importantly, the ambitions of state governments.

He implored members of Council to ensure that every decision they make assures the citizens “that their government is paying attention to the pulse of the nation and is resolved to respond with competence, compassion and purpose.”