Nigeria reduces crude pledged for Gazelle loan, extends repayment period
The National Economic Council has approved a reduction in the daily crude oil allocation pledged for Nigeria’s Project Gazelle oil-backed loan, freeing up more barrels for domestic use and exports. The refinancing, chaired by Vice President Kashim Shettima, aims to ease pressure on crude allocations while maintaining debt obligations. Experts like Kelvin Emmanuel and Dayo Ayoade have raised concerns about the transparency and long-term implications of the new arrangement. The revised structure is expected to extend the loan repayment period and alter Nigeria’s fiscal flexibility.
TLDR
- The daily crude oil pledged for Project Gazelle was reduced from 90,000 to 78,750 barrels.
- The refinancing allows the Nigerian National Petroleum Company Limited to unlock an additional $3bn in liquidity.
- Experts argue the new arrangement could extend the repayment period and increase long-term obligations.
- The deal has been criticised for a lack of transparency and high associated fees.
- While the move frees up crude for other uses, concerns remain about Nigeria’s exposure to oil price fluctuations and future debt.
