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The Peoples Democratic Party (PDP) flag-bearer in the 2023 presidential election, Atiku Abubakar, has called on President Bola Tinubu to give account on the $3.3 billion emergency crude repayment loan taken by the Nigerian National Petroleum Company Limited (NNPCL).
The former Nigerian Vice President made the demand in a statement on Thursday, January 25, 2024.
The NNPCL had, on August 16, 2023, secured a $3.3 billion emergency loan, aimed at supporting the naira and stabilising the foreign exchange market.
The NNPCL Group Chief Executive Officer, Mele Kolo Kyari, announced the deal after signing the dotted lines for the crude-for-cash funding in Cairo, the Egyptian capital.
To be facilitated by the African Export-Import Bank, otherwise known as Afreximbank, the crude repayment loan was also targeted at supporting the Federal Government in its ongoing fiscal and monetary policy reforms.
Meanwhile, the Federal Government received the first tranche of $2.25 from the Afreximbank three weeks ago.
Following the development, Atiku raised concerns about why the NNPCL has been the only source of information to the public regarding the mega-deal. He also said a Special Purpose Vehicle (SPV) called Project Gazelle Funding Limited is driving the deal, noting that it was incorporated in the Bahamas.
“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 PDP candidate stated.
“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,” the statement added.
Atiku called into question the deal’s integrity and charged the Federal Government to directly engage Nigerians on the 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?”