The National Economic Council has greenlit a $4.5 billion refinancing plan to replace NNPC Limited’s current $3.3 billion oil-backed loan. Based on information from a Bloomberg report citing government sources, this move is intended to bolster Nigeria’s foreign exchange reserves and provide capital for infrastructure projects.
Known as Project Gazelle 2, this initiative will cover the $1.5 billion remaining from the 2023 agreement while generating an extra $3 billion in liquidity. The administration of President Bola Tinubu is pursuing this to support economic reforms and alleviate pressure on the naira. Finance Minister Taiwo Oyedele explained to the council that these terms are superior to the previous arrangement. Notably, the commitment of crude oil has been reduced by 12.5%, dropping from 90,000 barrels per day to 78,750 barrels. Vice President Kashim Shettima emphasized that the effectiveness of these government policies will be judged by their influence on essential services such as healthcare, education, and the cost of living for families.
