The Presidency has responded to Atiku Abubakar, the 2023 presidential candidate of the Peoples Democratic Party (PDP), regarding the $3.3 billion emergency crude repayment loan of the Nigerian National Petroleum Company Limited (NNPCL).
This loan, which was obtained on August 16, 2023, aims to strengthen the naira and stabilize the foreign exchange market. It was arranged by the African Export-Import Bank to support the national currency and assist the Federal Government’s monetary and fiscal reforms.
The government has already received $2.25 billion of the loan. Atiku called on President Bola Tinubu to provide a detailed account of the loan, as the information available is limited to sources within the NNPCL.
He pointed out that the loan is being facilitated by a Special Purpose Vehicle called Project Gazelle Funding Limited, incorporated in the Bahamas.
Presidential aide Otega Ogra, in response, stated that the Tinubu administration has previously provided information about the loan to the public.
He explained that the loan, also known as Project Gazelle, is a financing agreement secured by NNPC Limited to prepay future royalties and taxes to the federal government.
Ogra explained that the project of NNPC Limited is a forward-thinking financial strategy. This strategy aims to align operational needs with broader economic goals by using future crude oil sales for immediate funding. It also aims to improve liquidity and contribute to Nigeria’s foreign exchange reserves.
According to Ogra, this project demonstrates the operational autonomy and financial expertise of NNPC Limited. It ensures immediate access to funds while minimizing the impact on future earnings and potentially improving Nigeria’s credit rating.
Ogra also mentioned that the repayments for this project are carefully planned and linked to future oil sales. The contracts for oil sales have conservative pricing to reduce the risks associated with oil price volatility.
