Nigeria’s National Economic Council (NEC) has approved the refinancing of the 3.3 billion dollars Project Gazelle Pre-Export Finance Facility through a new 4.5 billion dollars facility named “Project Gazelle 2”.
The 159th meeting of the National Economic Council (NEC) held virtually on Monday stated that the approval allows NNPC Ltd. to refinance the outstanding balance of 1.5 billion dollars under the original 2023 facility.
It will also unlock an additional 3 billion dollars in liquidity to strengthen the country’s external reserves, support ongoing fiscal and infrastructure priorities of the government.
Briefing newsmen after the meeting, the Minister of Finance, Dr. Taiwo Oyedele, explained that the refinancing has been structured on more favourable terms than the original facility.
According to him, this include a reduction in the volume of pledged crude oil from 90,000 barrels of oil per day (bpd) to approximately 78,750 bpd – a 12.5 per cent reduction.
He noted that under the new arrangement, an additional 11,250 bpd for the federation would be released, while there would be reduction in the pledged crude volumes by NNPC limited.
Oyedele added that while accessing additional liquidity on improved terms, the arrangement was freeing up resources for strategic national priorities while strengthening the country’s financing structures.
Earlier, the Vice President Kashim Shettima called for a responsive, scalable, and data-driven social protection policy to tackle multidimensional poverty in Nigeria.
Shettima said that government policies were often heard before seen.
He implored members of the council to ensure that every decision they make assure the citizens that the government was paying attention to the pulse of the nation.
GIK/APA