ENUGU, Nigeria (VOICE OF NAIJA)- Former Vice President Atiku Abubakar has called for transparency from the Bola Tinubu-led administration, demanding answers regarding the $3.3 billion emergency crude repayment loan obtained through the Nigeria National Petroleum Company (NNPC) on 16 August, 2023.
Atiku expressed concern over the lack of official communication from the Federal Government on this significant economic decision, on his X page on Thursday.
The loan, aimed at supporting the Naira and stabilizing the Foreign Exchange market, according to him, was arranged by the African Export-Import Bank with a Special Purpose Vehicle called Project Gazelle Funding Limited, incorporated in the Bahamas.
Key Questions Raised by Atiku:
Has the Federal Government accessed the loan?
Is the loan included in the government’s borrowing plan approved by the National Assembly?
Who are the parties involved in the loan, and what specific roles are they expected to play?
What are the conditions of the loan, including tenor, repayment terms, collateral, and interest rate?
Why register an SPV in the Bahamas, given the country’s recent notoriety for warehousing unclean assets?
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Atiku, representing the concerns of ordinary Nigerians, emphasizes the need for clarity on the details surrounding this loan, pointing out a significant discrepancy between the documented terms and the potential reality of the repayment amount, estimated at a staggering $12 billion.
The call for transparency seeks to address the apparent lack of integrity in the deal and urges the Federal Government to provide direct and clear answers.
He wrote, “The deal is supposed to be a crude-for-cash loan arranged by the African Export-Import Bank.
“According to information available, a Special Purpose Vehicle called Project Gazelle Funding Limited is driving the deal, and it was incorporated in the Bahamas.
“The SPV is the borrower while the NNPC 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.
“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 per cent, 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.
“There are questions to be answered on the integrity of this deal, and we earnestly request the Federal Government to talk directly on these cloudy details behind the deal.”