In a major fiscal move designed to reinforce foreign exchange reserves and shore up national revenue, the National Economic Council (NEC) has approved the refinancing of the $3.3 billion Project Gazelle crude-backed loan into a massive new $4.5 billion facility named Project Gazelle 2.
The green light came during the 159th virtual NEC meeting on Monday, August 3, 2026, chaired by Vice President Kashim Shettima, following a comprehensive briefing by the Minister of Finance and Coordinating Minister of the Economy, Dr. Taiwo Oyedele.
The newly restructured deal allows the Nigerian National Petroleum Company Limited (NNPC) to clear the remaining $1.5 billion balance from the initial 2023 pre-export facility while instantly injecting $3 billion in fresh liquidity into the nation’s financial system.
Unlocking More Crude: Cheaper Terms and Reduced Oil Mortgages
Beyond the multibillion-dollar liquidity influx, the defining victory of Project Gazelle 2 lies in its significantly improved commercial terms for the federation.
Minister Taiwo Oyedele revealed that the restructuring successfully slashes the amount of Nigerian crude oil mortgaged to service the loan by 12.5 percent.
- Original Crude Pledge: 90,000 barrels of oil per day (bpd)
- New Crude Pledge: 78,750 barrels of oil per day (bpd)
- Freed-Up Volume: 11,250 additional barrels of oil per day released back to the Federation
This 11,250 bpd reduction means Nigeria will now retain direct ownership and full sales revenue from over eleven thousand extra barrels of crude every single day—money that flows straight into federation accounts rather than servicing debt.
“Under the new arrangement, an additional 11,250 barrels of oil per day for the federation will be released… While accessing additional liquidity on improved terms, the arrangement is freeing up resources for strategic national priorities while strengthening the country’s financing structures.” — Dr. Taiwo Oyedele, Minister of Finance
Shettima Charges Governors on Poverty and Compassionate Governance
Opening the session, Vice President Shettima urged state governors and council members to ensure that high-level financial decisions translate into real relief for ordinary citizens struggling with multidimensional poverty.
Shettima stressed that macroeconomic policy wins like Project Gazelle 2 must ultimately manifest in everyday economic stability, cheaper food, better health services, and improved public infrastructure.
“Government policies are often heard before they are seen—they speak through the price of food, the condition of hospitals, the records in schools, and the strain on families. Every decision we make must assure the citizens that their government is paying attention.” — Vice President Kashim Shettima
From Emergency Lifeline to Strategic Leverage
The original Project Gazelle was launched in late 2023 as an emergency dollar-denominated lifeline designed to supply FX liquidity, stabilize the Naira, and calm severe currency volatility following the unification of exchange rate windows.
Three years later, three key factors allowed Nigeria to negotiate the far superior Project Gazelle 2 terms:
- Oil Sector Reforms: Enhanced regulatory transparency following petroleum industry overhauls.
- Upstream Rebound: Boosted domestic crude production capacity and fresh commitments from International Oil Companies (IOCs).
- Stronger Negotiating Power: NNPC’s upgraded balance sheet positioning it to command lower interest spreads and reduced asset pledges on international markets.
The $3 billion net liquidity proceeds will be deployed directly toward bolstering Nigeria’s external reserves, supporting critical infrastructure priorities, and maintaining exchange rate stability.
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