Nigeria’s National Economic Council has approved a new $4.5 billion oil-backed financing arrangement intended to refinance the outstanding balance of Project Gazelle and provide an additional $3 billion in liquidity.
The decision was announced following NEC’s 159th meeting, chaired virtually by Vice President Kashim Shettima on Monday, August 3, 2026.
How Project Gazelle 2 will work
Under the proposed arrangement, the Nigerian National Petroleum Company Limited will refinance approximately $1.5 billion still outstanding from the original $3.3 billion Project Gazelle facility established in 2023. The remaining $3 billion is expected to provide new liquidity for foreign reserves, fiscal needs and infrastructure priorities.
Finance and Coordinating Economy Minister Taiwo Oyedele told the council that the refinancing had been negotiated on more favourable terms. The amount of crude oil committed to servicing the facility is expected to decline from 90,000 barrels per day to about 78,750 barrels per day, leaving an additional 11,250 barrels available for normal export sales.
Why the refinancing matters
Project Gazelle is a pre-export financing structure backed by future crude-oil sales. The original facility was designed to provide dollar liquidity, support the naira and ease pressure in Nigeria’s foreign-exchange market.
The new approval could strengthen short-term liquidity and reduce the volume of crude committed each day. However, oil-backed borrowing also places future production revenues under repayment obligations, making transparency and careful fiscal management essential.
Important details remain outstanding
The approval does not necessarily mean that the full facility has already been disbursed. The government has not yet publicly released all lender identities, the final interest rate, repayment period, disbursement timetable or a detailed allocation of the additional $3 billion.
Those terms will be important in assessing the true cost of the refinancing and its long-term effect on public finances. Further official documentation is expected as the transaction progresses.
Sources: Official statement from the Office of the Vice President and PUNCH, August 3, 2026.