Nigeria’s National Economic Council has approved a major refinancing of the Nigerian National Petroleum Company Limited’s oil-backed loan facility, creating a new $4.5 billion arrangement known as Project Gazelle 2. The decision, taken on Monday, aims to strengthen the country’s external reserves and free up resources for infrastructure and fiscal priorities.
Under the original 2023 facility of $3.3 billion, roughly $1.5 billion remained outstanding. The new package refinances that amount while injecting an additional $3 billion in liquidity. Finance Minister Taiwo Oyedele told the Council that the terms are more favourable than before, including a 12.5 percent reduction in the volume of crude oil pledged as collateral—from 90,000 barrels per day to about 78,750 barrels. This change releases an extra 11,250 barrels daily for the federation to sell and retain revenue.
The move comes as Africa’s largest economy continues efforts to stabilise the naira, rebuild reserves and attract investment under President Bola Tinubu’s reform agenda. Persistent currency pressure and the need to fund critical projects have made such liquidity measures important. Vice President Kashim Shettima, who chairs the Council, emphasised that government policies must ultimately improve household welfare, including food prices, healthcare and education.
Oil remains central to Nigeria’s finances. Pre-export finance facilities of this type allow the state oil company to access funds against future crude sales. By renegotiating the structure, authorities hope to reduce the burden on production while improving overall financing efficiency. Officials described the deal as optimising costs and strengthening the country’s financial architecture.
Market watchers will monitor how quickly the additional liquidity feeds into reserves and whether it eases pressure on the foreign exchange market. Successful execution could also signal greater confidence to international investors watching Nigeria’s reform progress. The approval reflects ongoing efforts to manage oil-related liabilities more effectively while directing resources toward longer-term development goals.
For ordinary Nigerians, the test will be whether improved fiscal space translates into tangible benefits—more reliable power, better roads, or reduced inflation. In the near term, the refinancing provides breathing room for a government navigating complex economic challenges.