Former People’s Democratic Party (PDP) presidential candidate for the 2023 elections, Atiku Abubakar, has called on President Bola Tinubu to provide a detailed account of the $3.3 billion emergency crude repayment loan secured by the Nigerian National Petroleum Company Limited (NNPCL).
The loan, obtained on August 16, 2023, was aimed at shoring up the naira and stabilizing the foreign exchange market.
The transaction, facilitated by the African Export-Import Bank, was intended to support the national currency and contribute to the Federal Government’s monetary and fiscal reforms. Recently, the government received $2.25 billion of the $3.3 billion foreign exchange facility from the bank.
Expressing concerns over the lack of public information about the significant financial deal, Atiku Abubakar emphasized the need for transparency in managing the country’s financial resources, particularly in large-scale transactions involving national assets like crude oil.
Atiku pointed out that the transaction is being facilitated by a Special Purpose Vehicle (SPV) named Project Gazelle Funding Limited, registered in the Bahamas. The SPV is the borrower, and the NNPCL is the sponsor, with an agreement to repay the loan with crude oil at an interest rate slightly over 12 percent.
Notably, Nigeria’s current daily oil production is 1.38 million barrels, and the Project Gazelle deal stipulates supplying 90,000 barrels daily from 2024 until it reaches 164.25 million barrels for loan repayment. Atiku raised concerns about the deal, questioning why the Federal Government would register a company in the Bahamas, given the recent scandal involving the Paradise Papers.
Atiku highlighted the discrepancy between the estimated repayment amount of $12 billion and the apparent differential of about $7 billion from the details outlined in the deal on paper. He called on the Federal Government to provide clarity on the loan, raising questions about its inclusion in the government’s borrowing plan, the parties involved, and the conditions of the loan, including tenor, repayment terms, collateral, and interest rate.
In conclusion, Atiku insisted that the integrity of the deal must be scrutinized, urging the Federal Government to directly address the details behind this potentially controversial financial arrangement.
