Nigeria's National Economic Council (NEC) has approved the refinancing of the $3.3 billion Project Gazelle Pre-Export Finance Facility through a new $4.5 billion facility, now dubbed Project Gazelle 2. This decision, made during the 159th virtual NEC meeting, allows the Nigerian National Petroleum Company Limited (NNPC Limited) to refinance the remaining $1.5 billion from the original 2023 facility. Crucially, it also unlocks an additional $3 billion in liquidity, intended to bolster Nigeria’s external reserves and support the government's ongoing fiscal and infrastructure objectives. The Finance Minister and Coordinating Minister of the Economy, Dr. Taiwo Oyedele, presented the refinancing arrangement to the NEC, highlighting its significance.
The new Project Gazelle 2 facility is structured on more favorable terms compared to the original 2023 arrangement. A key improvement is a significant reduction in the volume of crude oil pledged to secure the loan. The pledged crude oil volume will decrease from 90,000 barrels per day (bpd) to approximately 78,750 bpd, representing a 12.5% reduction. This means an additional 11,250 bpd will be freed up for the federation to sell, allowing the country to retain more revenue directly.
According to a statement from Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications in the Office of the Vice President, the refinancing is a dual achievement. It provides improved liquidity access on better terms and strengthens the country’s overall financing structure by freeing up resources for strategic national priorities. Dr. Oyedele emphasized that the reduction in pledged volume directly increases the crude available for the federation to sell and retain revenue outside the terms of the facility. This initiative builds on the original Project Gazelle, which was established in 2023 as a pre-export finance facility using future crude oil sales to provide dollar liquidity for Nigeria, aiming to defend the naira and stabilize the foreign exchange market amidst currency volatility following exchange rate window unification.
This refinancing effort comes at a time when Nigeria is actively seeking to leverage favorable market conditions, including elevated oil prices, to refinance high-cost debt and raise funds to address its budget deficit, which for this year is estimated at 30 trillion naira ($22 billion). The country has been engaging with the World Bank and other multilateral lenders for less-costly concessionary loans, while investor confidence has been boosted by recent reforms and an increase in oil revenue. NNPC Limited has already remitted $6.286 trillion to the Federation Account in the first half of 2026, though there are concerns that total statutory payments for the year might fall short of last year's record $14.706 trillion despite improved operational performance.
The improved terms of Project Gazelle 2 reflect a larger new facility and NNPC Limited's stronger negotiating position, which is a result of three years of oil sector reforms aimed at attracting fresh investment from international oil companies and boosting domestic production capacity. The current environment of high oil prices, influenced by geopolitical factors, has created an opportunity for Nigeria to optimize its debt structure and secure additional funding for its development priorities.
