The National Economic Council (NEC) has approved the refinancing of the N3.3 billion dollars Project Gazelle Pre-Export Finance Facility through a new 4.5 billion dollars facility named “Project Gazelle 2”.
The News Agency of Nigeria (NAN) reports that the approval was made during the 159th meeting of the National Economic Council (NEC) held virtually on Monday.
The approval allows NNPC Ltd., to refinance the outstanding balance of 1.5 billion dollars under the original 2023 facility also know as crude-for-cash loan that allows the national oil company to secure immediate cash in exchange for future oil sales.
The new arrangement will also unlock an additional three 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 Minster of Finance, 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, Vice President Kashim Shettima, who chairs the NEC, called for a responsive, scalable, and data-driven social protection policy to tackle multidimensional poverty in Nigeria.
Shettima said government policies were often heard before seen.
He implored members of council to ensure that every decision they make assure the citizens that government was paying attention to the pulse of the nation.(NAN)
