The National Economic Council (NEC) has approved the refinancing of the $3.3 billion Project Gazelle Pre-Export Finance Facility through a new US$4.5 billion facility named ‘Project Gazelle 2’.
The approval was part of the outcome of the 159th meeting of the NEC held virtually on Monday, where the council observed the significance of unlocking additional liquidity to the federation, among other benefits.
The council also pledged its support for the actualisation of the initiative.
The approval enables 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 bolster the country’s external reserves and support the government’s ongoing fiscal and infrastructure priorities.
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Speaking at a press briefing after the meeting, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, 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.
The minister 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.
Social protection policy
Earlier in his opening remarks, Vice President Kashim 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 the ambitions of state governments.
The VP further 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.”