The National Economic Council (NEC) has approved a new $4.5 billion Project Gazelle 2 financing facility to replace the existing $3.3 billion Project Gazelle loan, a move aimed at improving Nigeria’s finances and increasing funds for key national projects.
The decision was made during the council’s 159th virtual meeting chaired by Vice President Kashim Shettima. Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, explained that the new arrangement offers better terms than the original agreement signed in 2023.
Under the refinancing plan, the Nigerian National Petroleum Company Limited (NNPC) will pay off the remaining $1.5 billion owed under the first Project Gazelle facility. At the same time, the country will gain access to an additional $3 billion in fresh funding to strengthen foreign exchange reserves, support infrastructure development, and meet important government financial needs.
One of the major benefits of the new deal is the reduction in the amount of crude oil committed to securing the loan. The volume of pledged crude has been reduced from 90,000 barrels per day to 78,750 barrels per day, representing a 12.5 percent decrease.
This means that an extra 11,250 barrels of crude oil per day will now be available for the government to sell independently, allowing the federation to earn more revenue outside the loan agreement.
Oyedele described the refinancing as a smarter financial strategy that provides more liquidity while improving the country’s overall borrowing position. He said the revised agreement gives Nigeria access to more funds at better terms and frees up additional resources for national development.
The council welcomed the initiative, noting that the extra funding would help improve the country’s financial stability and provide support for important government programmes.
During the meeting, Vice President Shettima also stressed the need for stronger and more effective social protection policies to address poverty across the country. He said government decisions should directly improve the lives of ordinary Nigerians by making food more affordable, strengthening healthcare and education, and creating better opportunities for families.
According to him, every policy introduced by government should demonstrate compassion, competence and a commitment to improving citizens’ welfare.
Project Gazelle was first introduced in 2023 as a pre-export financing arrangement backed by future crude oil sales. The facility was created to provide Nigeria with dollar liquidity during a period of severe foreign exchange pressure following the unification of the country’s exchange rates.
The new Project Gazelle 2 builds on that initiative but comes with improved financing terms and reflects Nigeria’s stronger position after recent reforms in the oil and gas sector. Officials believe the restructuring will attract greater investor confidence while supporting the country’s long-term economic goals.
The approval marks another step in the government’s efforts to strengthen public finances, improve foreign exchange reserves and create more room for investment in critical sectors of the economy.
