The National Economic Council (NEC) has approved a refinancing of the US$3.3 billion Project Gazelle Pre-Export Finance Facility with a new US$4.5 billion facility, called Project Gazelle 2.
The approval will enable The Nigerian National Petroleum Company Limited (NNPC) to refinance the balance of the original 2023 facility of about US$1.5 billion and unlock an additional US$3 billion liquidity to shore up the country’s external reserves and support the fiscal and infrastructure priorities of the Nigerian Government.
The decision was taken at the 159th meeting of the National Economic Council held virtually on Monday.
The meeting was chaired by the Chairman of the Council, Vice President Kashim Shettima.
Vice President Shettima who was represented by the Minister of Finance, Dr Taiwo Oyedele, presented the strategic importance of the project to NEC and the project got the approval of NEC.
Read Also: ‘I’m a Living Witness to His Wickedness’ – Cynthia Morgan Calls Out Former Boss Jude Okoye
The Council recognized the criticality of unlocking additional liquidity for the federation and reaffirmed its commitment to the successful implementation of the initiative.”
Speaking at a press briefing after the meeting, Dr Oyedele said the refinancing had been structured on more favourable terms than the original facility. “This includes a reduction in the volume of pledged crude oil from 90,000 barrels per day (bpd) to approximately 78,750 bpd, a 12.5 per cent reduction.
The new arrangement, he said, would free up another 11,250 bpd to the federation, but would cut the volume of crude pledged by NNPC Limited.
The refinancing will increase liquidity on better terms, release resources for strategic national priorities and strengthen the structure of financing in the country, according to the minister.
Earlier, in his opening remarks, Vice President Shettima had called for a responsive, scalable and data-driven social protection policy to address multidimensional poverty in Nigeria.
“Government policies are often felt before they are seen, showing up in the prices of food, the state of hospitals, the results in schools, the pressures on families, the confidence of investors and the ambitions of state governments,” he said.
He urged Council members to see to it that all decisions reassure Nigerians that their Government is in tune with the needs of the country and is committed to respond with competence, compassion and purpose.
