Full Breakdown
Nigeria Approves $4.5 bn “Project Gazelle 2” Refinancing to Unlock Oil-Backed Liquidity
8/5/2026, 4:25:37 PM
Core Event
The National Economic Council (NEC) approved a new $4.5 billion financing arrangement—dubbed “Project Gazelle 2”—to refinance the outstanding $1.5 billion balance of the 2023 oil-backed pre-export facility and to inject an additional $3 billion in liquidity. The deal reduces the daily crude volume pledged as collateral from 90,000 barrels per day (bpd) to roughly 78,750 bpd, freeing about 11,250 bpd for direct sale by the federal government. The approval was made at the 159th virtual NEC meeting chaired by Vice President Kashim Shettima.
Background & Context
Project Gazelle originated in August 2023 as a $3.3 billion emergency crude-for-cash loan arranged by the African Export-Import Bank (Afreximbank). The facility was intended to provide immediate foreign-exchange liquidity amid severe dollar shortages and to support the naira. Under the original terms, the Nigerian National Petroleum Company (NNPC) pledged 90,000 bpd of future crude to prepay taxes and royalties. Since then, President Bola Tinubu’s administration has pursued fiscal and energy reforms, seeking to boost production and attract upstream investment while managing debt sustainability.
Data & Statistics
- Original facility: $3.3 billion loan, 90,000 bpd pledged, interest 11.85 % per annum.
- New facility: $4.5 billion total; $1.5 billion used to retire the outstanding balance, $3 billion fresh liquidity.
- Pledged crude reduced by 12.5 % to ~78,750 bpd, releasing 11,250 bpd for the federation.
- NNPC’s average output in 2024 has risen to about 1.5 million bpd, with a June peak of 1.56 million bpd, the highest since April 2020.
Official Statements & Responses
He linked the extra 11,250 bpd to greater flexibility in meeting fiscal obligations and funding infrastructure projects.
Vice President Kashim Shettima, chair of the NEC, framed the decision in terms of broader social impact, stating that government policies are ultimately judged by their effects on food prices, healthcare, education, and household welfare.
Why It Matters
By lowering the volume of oil committed to debt service, the government can sell more crude on the open market, potentially boosting foreign-exchange inflows and easing pressure on the naira. The $3 billion injection is earmarked for the Central Bank of Nigeria to bolster reserves, which could improve the country’s ability to intervene in currency markets and fund fiscal priorities without expanding overall debt exposure.
Verbatim Quotes
- “Our policies are often heard before they are seen. They speak through the price of food, the condition of our hospitals, the records in our schools, the strain on families, the confidence of those who invest their labour in our nation’s future and, very importantly, the ambitions of our state governments,” — Kashim Shettima, of vice president
What's Next
The NEC indicated that implementation will proceed after finalising financing documentation and operational arrangements with NNPC and participating lenders. No specific future dates were disclosed.
Conflicting Reports & Gaps
All sources consistently report the $4.5 billion total size, the $1.5 billion refinancing amount, and the 12.5 % reduction in pledged crude. No substantive discrepancies were identified. However, detailed terms such as the facility’s tenor and interest rate were not disclosed, leaving a gap in understanding the long-term cost of the financing.
