Abuja — The National Economic Council (NEC) yesterday approved the refinancing of the $3.3 billion 'Project Gazelle' pre-export finance facility through a new $4.5 billion facility named 'Project Gazelle 2'.
The approval allows NNPC to refinance the outstanding balance of approximately $1.5 billion under the original 2023 facility, while unlocking an additional $3 billion in liquidity to strengthen the country's external reserves, support ongoing fiscal and infrastructure priorities of the government.
Essentially, refinancing involves replacing an existing debt with a new loan that offers different terms, lower interest rates, or a changed repayment period.
The development which formed the outcome of the 159th meeting of NEC) held virtually and followed a presentation by the Minister of Finance, Taiwo Oyedele. The meeting was chaired by Chairman of the Council, Vice President Kashim Shettima, underscoring the importance of the project.
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NEC observed the significance of unlocking additional liquidity to the federation, among other benefits, pledging its support for the actualisation of the initiative.
Addressing newsmen after the meeting at the State House, Abuja, the finance minister explained that the refinancing has been structured on more favourable terms than the original facility, including 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 will be released, while there will be reduction in the pledged crude volumes by NNPC.
Oyedele added that while accessing additional liquidity on improved terms, the arrangement is freeing up resources for strategic national priorities while strengthening the country's financing structures.
Earlier in his opening remarks, the vice president called for a responsive, scalable, and data-driven social protection policy to tackle multidimensional poverty in Nigeria.
According to Shettima, government policies are often heard before they are seen, through the price of food, condition of hospitals, records in schools, strain on families, the confidence of those who invest their labour in the nation's future and the ambitions of state governments.
He implored members of council to ensure that every decision they make assure the citizens "that their government is paying attention to the pulse of the nation and is resolved to respond with competence, compassion and purpose."
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Meanwhile, Nigeria's state-owned oil company, NNPC, has issued further tenders to sell a cargo of its newest crude oil grade Cawthorne in September, plus another to sell Bonny Light, according to tender documents seen by Reuters.
The company began exporting Cawthorne in March, joining other recently launched grades such as Nembe and Utapate, as Nigeria seeks to boost production and diversify its export streams after years of underinvestment, oil theft and operational disruptions.
According to the document, the Cawthorne cargo will load on September 21-22 and will comprise 950,000 barrels. NNPC is also offering a 950,000 barrel cargo of Bonny Light loading on September 30-October 1. NNPC did not immediately respond to Reuters' request for comment.
The cargoes are both sold on a free on board basis, and bids for the tenders are due by 8 p.m. West Africa Time (1900 GMT) on August 4.
The Bonny Light production stream will load around 364,000 barrels per day of oil across 12 cargoes, a preliminary loading programme seen by Reuters shows.
Sellers of West African grades were beginning to raise offer levels in recent sessions amid growing supply disruptions in the Middle East, traders told Reuters, but broadly speaking trading activity has been muted as market participants await further clarity on the volatile situation in the Strait of Hormuz and the Red Sea.
