Africa’s top oil producer unlocks $3 billion and frees more crude for export with $4.5 billion state oil company refinancing

The National Economic Council (NEC) approved the refinancing of the company’s Project Gazelle facility on Monday, allowing NNPC to replace the remaining balance of the original 2023 financing with a new structure that provides additional liquidity on improved terms.

Government officials say the arrangement will not only inject fresh capital into the economy but also free more crude oil for direct sale by the federation.

Unlike the original transaction, which required about 90,000 barrels of crude per day to secure the loan, the refinanced facility will require roughly 78,750 barrels per day, releasing around 11,250 barrels daily that can now be sold independently.

The additional export volumes are expected to improve government revenues while giving the country greater flexibility in managing its oil receipts.

The refinancing marks another step in Nigeria’s efforts to reshape how it finances its oil sector.

Rather than relying solely on fresh borrowing, the government has increasingly turned to refinancing existing obligations to reduce financing costs, improve repayment terms and unlock additional capital without significantly increasing debt exposure.

Project Gazelle was launched in 2023 as one of the largest oil-backed financing arrangements ever executed by NNPC, raising $3.3 billion through a syndicated pre-export facility backed by future crude sales.

The transaction was structured to provide immediate foreign exchange liquidity at a time when Nigeria faced severe dollar shortages, weakening external reserves and mounting pressure on the naira.