Energy

Nigeria approves $4.5 billion refinancing of NNPC oil-backed facility

Photo caption: NNPC logo

 

Nigeria’s National Economic Council on Monday approved the refinancing of NNPC ​Limited’s $3.3 billion oil-backed pre-export finance facility through a ‌new $4.5 billion arrangement aimed at strengthening the country’s external reserves and freeing up funds for infrastructure, the presidency ​said late on Monday, .

The new facility dubbed “Project ​Gazelle 2”, will refinance approximately $1.5 billion outstanding ⁠under the original 2023 deal while unlocking ​an additional $3 billion in liquidity, the presidency said in ​a statement.

The refinancing comes as one of Africa’s largest economies seeks to shore up its foreign reserves and fund ​fiscal priorities amid persistent pressure on the ​naira currency and efforts to attract foreign investment through economic ‌reforms ⁠launched by President Bola Tinubu’s administration.

Finance minister Taiwo Oyedele told the NEC that the new terms of the facility were more favourable than the ​original facility, with ​pledged crude ⁠oil volumes cut 12.5% to roughly 78,750 barrels per day from 90,000 ​bpd.

This would free up resources for ​strategic ⁠national priorities while improving Nigeria’s financing structures.

Vice President Kashim Shettima, who chairs the NEC, said government policies ⁠were ​ultimately measured by their impact ​on food prices, healthcare, education and household welfare, the presidency ​statement added.

=== Reuters ===

 

 

 

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