NNPC to Refinance $3.3bn Loan Under New $4.5bn Deal

The National Economic Council (NEC) has approved a new $4.5 billion oil-backed financing facility for the Nigerian National Petroleum Company (NNPC) Limited to refinance its existing Project Gazelle loan and provide additional funding for the country.

The approval, granted during the council’s 159th virtual meeting chaired by Vice President Kashim Shettima, will allow NNPC to refinance the outstanding $1.5 billion balance of the original $3.3 billion Project Gazelle facility secured in 2023 while unlocking an additional $3 billion in liquidity.

According to a statement issued by Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications (Office of the Vice President), the financing is expected to strengthen Nigeria’s external reserves and support the Federal Government’s fiscal and infrastructure priorities.

The approval followed a presentation by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, which was delivered to the council by Vice President Shettima.

The new financing package has been structured on more favorable terms than the original agreement. Under the revised arrangement, the volume of crude oil pledged for repayment has been reduced from 90,000 barrels per day to about 78,750 barrels per day, representing a 12.5 per cent reduction.

The adjustment will free up an additional 11,250 barrels per day for the Federation while reducing NNPC’s crude commitment under the facility.

The initial $3.3 billion Project Gazelle facility, secured from the African Export-Import Bank (Afreximbank) in August 2023, was designed to boost the naira, improve foreign exchange liquidity, and support the Federal Government’s economic reform agenda.

During the meeting, Vice President Shettima also called for stronger, data-driven social protection policies to address poverty and improve citizens’ welfare. He urged members of the council to ensure government decisions translate into tangible improvements in areas such as food security, healthcare, education, and economic development.