Atiku Abubakar, the 2023 presidential candidate of the Peoples Democratic Party (PDP), has urged President Bola Tinubu to provide a detailed report on the $3.3 billion emergency crude repayment loan obtained by the Nigerian National Petroleum Company Limited (NNPCL).
The loan, secured on August 16, 2023, was intended to strengthen the naira and stabilize the foreign exchange market.
The African Export-Import Bank arranged the transaction to support the national currency and assist the Federal Government’s monetary and fiscal reforms. Recently, the Federal Government received $2.25 billion of the $3.3 billion foreign exchange facility from the bank.
Atiku Abubakar expressed concerns about the lack of public information regarding this significant financial deal, with the only available details coming from sources within the NNPCL.
He emphasized that the transaction is being facilitated by a Special Purpose Vehicle called Project Gazelle Funding Limited, which is incorporated in the Bahamas.
Atiku’s call for transparency highlights the importance of clarity and accountability in managing the country’s financial resources, particularly in large-scale transactions involving national assets like crude oil.
He said, “SPV is the borrower while the NNPCL is the sponsor, with an agreement to pay with crude oil to the SPV in order to liquidate the loan at an interest rate that is a little over 12 per cent.”
The statement added “What is even more confounding about this deal is why the Federal Government would register a company in the Bahamas, knowing full well the recent scandal of the Paradise Papers that involved that country.
“Curiously also, Nigeria’s current Barrels Produced Daily (BPD) is 1.38 million, and according to the Project Gazelle deal, Nigeria is to supply 90,000 Barrels of its daily production, starting from 2024 till it is up to 164.25 million barrels for the repayment of the loan.
“Now, this is where the details get disturbing because Nigeria’s benchmark for the sale of crude per barrel in 2024 is $77.96. A simple multiplication of that figure by 164.25 will give us a whooping $12bn.
“It is on this note that we are calling on the Federal Government to speak up on this shady deal.
“It is inconceivable that the Federal Government will lead the country to take a loan of $3.3b with an interest rate that is not more than 12 percent, but with estimated repayment amounting to $12bn.
“That is a humongous differential of about $7b between what is in the details of the deal on paper and what indeed is the reality.”
Atiku insisted that there are questions to be answered on the integrity of this deal, and charged the Federal Government to talk directly on details behind the deal.
He asked, “Has the Federal Government accessed the loan? Is the loan in the government’s borrowing plan as approved by the National Assembly? Who are the parties to the loan, and what specific roles are they expected to play? What are the conditions of the loan, including tenor, repayment terms, the collateral, and the interest rate?
“And, lastly, why register an SPV in the Bahamas knowing the recent scandal of the country’s notoriety for warehousing unclean assets?”
