Featured, Politics
By Christabel Ejenike
ATIKU Abubakar, the former Vice-President of Nigeria and the presidential candidate for the People’s Democratic Party, PDP, in the past 2023 elections has requested an explanation for the NNPC $3.3bn emergency loan from the Bola Tinubu–led administration.
Atiku made this request on Thursday, January 25, saying: “Tinubu’s administration owes Nigerians an explanation for the NNPC $3.3bn emergency loan.
“In what appears to be a landmark economic decision of the Bola Tinubu-led administration, the Federal Government last year, precisely on August 16, 2023 through the Nigerian National Petroleum Company Ltd, secured a $3.3 billion emergency crude repayment loan, which according to the NNPCL, was to help give support to the Naira and stabilize the Foreign Exchange market.”
He stated: “The curious thing about this transaction is that up till now, the Federal Government continues to keep mum about it, and the only information available to the public on the mega deal is coming only through unofficial sources from the NNPCL.
“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,” he said.
He pointed out that: 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.
“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 whopping $12bn.”
He called on the FG to speak on this shady deal.
Atiku stated in the tweet that “It is inconceivable that the Federal Government will lead the country to take a loan of $3.3bn with an interest rate that is not more than 12 per cent, but with estimated repayment amounting to $12bn.” And “That is a humongous differential of about $7bn between what is in the details of the deal on paper and what indeed is the reality.”
The former Vice-President questioned the integrity of the deal and requested that the FG clear the air around the deal.
Atiku on behalf of the masses raised series of questions that require answers by the federal government.
“1. Has the Federal Government accessed the loan?
2. Is the loan in the government’s borrowing plan as approved by the National Assembly?
3. Who are the parties to the loan, and what specific roles are they expected to play?
4. What are the conditions to the loan, including tenor, repayment terms, the collateral and the interest rate?
5. And, lastly, why register an SPV in the Bahamas knowing the recent scandal of the country’s notoriety for warehousing unclean assets?
A.
-January 26, 2024 @ 11:45 GMT|
Tags: Afreximbank. Atiku Abubakar Christabel Ejenike
