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

Nigeria has approved a new $4.5 billion loan to replace a 2023 loan of $3.3 billion. Nigeria's National Economic Council (NEC) approved the refinancing of NNPC Limited's $3.3 billion oil-backed pre-export finance facility, with a new $4.5 billion arrangement aimed at strengthening the country's external reserves and freeing up funds for infrastructure. The presidency said late on Monday that the new facility, dubbed "Project Gazelle 2", will refinance approximately $1.5 billion outstanding ⁠under the original 2023 deal while unlocking an additional $3 billion in liquidity. Oil pollution in Nigeria: NGOs accuse Shell of bad pipeline maintenance Follow us on WhatsApp | LinkedIn for the latest headlines The refinancing comes as Africa 's third largest economy seeks to shore up its foreign reserves and fund fiscal priorities, amid persistent pressure on the naira currency and efforts to attract foreign investment through economic reforms ⁠launched by President Bola Tinubu 's administration. If oil prices stay reasonably high, NNPC would have more flexibility to sell its oil - to generate more operating cash, to invest in production or to pay more dividends to the government. I this way, the refinancing could improve NNPC's cash flow even if it doesn't immediately increase profits. Finance minister Taiwo Oyedele told the NEC that the new terms were more favourable than the original facility, with pledged crude ⁠oil volumes cut 12.5 percent to roughly 78,750 barrels per day from 90,000. Ecowas greenlights $25bn Nigeria-Morocco mega gas pipeline Vice President Kashim Shettima , who chairs the NEC, said government policies ⁠were ultimately measured by their impact on food prices, healthcare, education and household welfare, the presidency's statement added. Nigeria has long been one of Africa's largest crude oil producers and exporters, but still imports much of its gasoline, having too few and poorly maintained oil refineries. Read or Listen to this story on the RFI website. AllAfrica publishes around 600 reports a day from more than 90 news organizations and over 500 other institutions and individuals , representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica . To address comments or complaints, please Contact us . AllAfrica is a voice of, by and about Africa - aggregating, producing and distributing 600 news and information items daily from over 90 African news organizations and our own reporters to an African and global public. We operate from Cape Town, Dakar, Abuja, Johannesburg, Nairobi and Washington DC. Get the latest in African news delivered straight to your inbox By submitting above, you agree to our privacy policy . We need to confirm your email address. To complete the process, please follow the instructions in the email we just sent you. There was a problem processing your submission. Please try again later.