Former Vice President and 2023 PDP presidential candidate, Atiku Abubakar, has raised serious concerns regarding the opacity surrounding a substantial $3.3 billion crude repayment loan obtained by the Federal Government through the Nigeria National Petroleum Company (NNPC) on August 16, 2023.
The loan, purportedly a crucial economic decision of the Bola Tinubu-led administration, was orchestrated to fortify the Naira and stabilize the Foreign Exchange market.
It was executed as a crude-for-cash deal, arranged by the African Export-Import Bank, with a Special Purpose Vehicle (SPV) named Project Gazelle Funding Limited playing a central role.
Notably, the SPV was incorporated in the Bahamas, raising eyebrows given the recent Paradise Papers scandal associated with the country.
What adds to the complexity of the deal is the mode of repayment. The SPV, Project Gazelle Funding Limited, is set to receive a daily supply of 90,000 barrels from Nigeria’s current Barrels Produced Daily (BPD) of 1.38 million. The repayment timeline spans from 2024, with Nigeria obligated to provide crude until it reaches 164.25 million barrels.
What has further raised eyebrows is the estimated repayment amount. Based on Nigeria’s crude benchmark of $77.96 per barrel in 2024, the total repayment could potentially reach a staggering $12 billion. This stark contrast in figures has prompted Atiku Abubakar to demand transparency from the Federal Government.
The former Vice President underscored the need for clarity, pointing out the incongruity between the declared loan amount and the projected repayment. Atiku called for direct answers to specific questions:
- Has the Federal Government accessed the $3.3 billion loan?
- Is the loan part of the government’s borrowing plan as 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 did the Federal Government choose to register an SPV in the Bahamas, given the recent scandal involving the country’s notoriety for warehousing unclean assets?
Atiku emphasized that these inquiries are essential for establishing trust and accountability in the handling of significant national financial transactions. He urged the government to provide comprehensive and unequivocal responses to address the prevailing concerns.