Nigeria’s National Economic Council (NEC) has approved Project Gazelle 2, a US$4.5 billion refinancing programme designed to restructure the Nigerian National Petroleum Company (NNPC) Ltd.’s existing US$3.3 billion oil-backed loan, a move expected to unlock about US$3 billion in fresh liquidity for the country.
The approval was announced after the council’s meeting chaired by Vice President Kashim Shettima, with officials describing the transaction as a major step toward improving NNPC’s financial flexibility and supporting broader economic reforms.
Project Gazelle 2 will refinance the existing oil-backed facility with a larger and longer-tenor financing structure, reducing near-term debt servicing pressures while releasing additional capital for investment in the petroleum sector and other strategic government priorities.
According to officials, approximately US$3 billion in liquidity is expected to be unlocked through the refinancing, strengthening NNPC’s balance sheet and enhancing its capacity to finance upstream production, infrastructure development and operational activities.
The refinancing builds on the earlier Project Gazelle initiative, under which NNPC secured financing backed by future crude oil production. Government officials said the second phase has been structured to optimize the company’s debt profile while preserving Nigeria’s ability to meet its financial obligations.
The Federal Government said the transaction forms part of wider efforts to improve public sector financing, deepen investor confidence and strengthen Nigeria’s fiscal position amid continuing reforms in the oil and gas industry.
Officials added that the refinancing would help ease pressure on government finances by providing additional liquidity without requiring immediate increases in public borrowing through conventional debt markets.
Analysts say the approval reflects growing confidence in Nigeria’s efforts to restructure strategic energy-sector liabilities while maintaining access to international capital. However, they note that oil-backed financing arrangements continue to attract scrutiny because future crude production is pledged as collateral, making effective production management and price stability critical to their success.
The project is also expected to support NNPC’s ongoing investment programme aimed at increasing crude oil production, expanding gas infrastructure and improving operational efficiency following its transition to a commercially oriented national oil company under the Petroleum Industry Act.
Market participants will be watching closely as the transaction moves toward financial close, with expectations that the additional liquidity could provide a significant boost to Nigeria’s energy sector and wider economy if implemented successfully.
