Nigeria has unlocked $3 billion in fresh funding following the approval of a refinancing deal for the Nigerian National Petroleum Company (NNPC) Limited’s flagship oil-backed financing facility.
The National Economic Council (NEC) approved the $4.5 billion refinancing, allowing NNPC to replace the remaining balance of its 2023 Project Gazelle facility with a new financing structure offering improved terms.
As part of the arrangement, the amount of crude oil committed to servicing the loan has been reduced from about 90,000 barrels per day to approximately 78,750 barrels per day. This releases around 11,250 barrels of crude daily for direct federation sales, a move expected to boost government revenue from oil exports.
Project Gazelle was launched in 2023 as a syndicated pre-export financing facility that raised $3.3 billion by using future crude oil production as collateral. The financing provided foreign exchange liquidity at a time when Nigeria faced declining external reserves and pressure on the naira.
According to government officials, the refinancing will inject fresh capital into the economy while improving fiscal flexibility and reducing the volume of future crude production tied to debt repayment.
The transaction forms part of the Federal Government’s broader strategy of restructuring existing obligations to lower financing costs, improve repayment terms and unlock additional capital without significantly increasing the country’s debt burden.
The deal also comes as Nigeria continues efforts to increase crude oil production through energy sector reforms, renewed investment in upstream operations and measures aimed at curbing oil theft and pipeline vandalism.
Analysts say the refinancing reflects continued confidence from international lenders in Nigeria’s long-term oil production outlook despite past operational challenges.
If oil production continues to recover, the additional crude available for export is expected to strengthen foreign exchange earnings, support external reserves and improve government finances.
