Nigeria: Nigeria Approves $4.5bn Refinancing of State-Owned Oil Company

What the report says

Nigeria has approved a new $4.5 billion refinancing package for NNPC Limited, the state-owned oil company, according to RFI’s report distributed by AllAfrica. The National Economic Council signed off on the arrangement, which is intended to replace a 2023 oil-backed pre-export finance facility worth $3.3 billion. The presidency said the new structure, called “Project Gazelle 2,” would refinance part of the remaining debt while also providing fresh liquidity.

The report said the deal is designed to support Nigeria’s foreign reserves and help free up money for infrastructure spending. It comes as the government continues efforts under President Bola Tinubu to stabilize the economy, attract investment, and reduce pressure on the naira. Finance minister Taiwo Oyedele told the council the revised terms were more favorable than the earlier facility, including a lower volume of crude pledged as collateral.

According to the article, the pledged oil volume was cut by 12.5% to about 78,750 barrels per day from 90,000. Officials said the refinancing could give NNPC more flexibility to sell crude and generate cash for operations, investment, and possible dividend payments to the government if oil prices remain strong. More broadly, the move reflects Nigeria’s continuing reliance on oil revenues even as it faces challenges from reserve pressures, fiscal needs, and limited domestic refining capacity.