Nigeria’s NEC endorses Project Gazelle 2 to restructure oil debt, cut borrowing costs and inject billions into the economy.
Nigeria’s National Economic Council (NEC) has approved a new $4.5 billion financing deal Project Gazelle 2 to refinance the existing $3.3 billion Project Gazelle facility. The move aims to cut borrowing costs, free up fresh liquidity, and boost foreign exchange reserves.
Under the arrangement, NNPC Limited will refinance the roughly $1.5 billion remaining balance from the original 2023 loan while unlocking an additional $3 billion to fund federal fiscal and infrastructure projects.
The approval was granted during the 159th virtual NEC meeting, chaired by Vice President Kashim Shettima on Monday.
The approval followed a presentation by Wale Edun, Minister of Finance and Coordinating Minister of the Economy. Council members endorsed the plan, noting its ability to lower debt costs and boost fiscal flexibility.
Briefing journalists after the meeting, Edun revealed that the new deal was secured on far better terms including a 12.5% reduction in pledged crude oil, dropping from 90,000 to approximately 78,750 barrels per day.
He noted that the revised structure frees up an extra 11,250 barrels of crude oil per day for the Federation while reducing NNPC Limited’s crude pledge obligations.
He noted that the new structure delivers fresh liquidity on better terms, freeing up vital capital for national priorities and strengthening Nigeria’s broader financial framework.
Earlier in the meeting, Vice President Shettima urged the council to build a responsive, scalable, and data-driven social safety net to combat multidimensional poverty nationwide.
He noted that citizens feel the impact of government policies long before they understand the mechanics seeing it directly in food prices, healthcare quality, classroom standards, family budgets, and investor confidence.
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The Vice President urged council members to ensure every decision reassures Nigerians that the government is listening and ready to respond with “competence, compassion, and purpose.”
He stressed that bolstering social safety nets and executing policies effectively are essential to cutting poverty and ensuring economic reforms reach vulnerable households nationwide.
