Atiku Calls for Transparency: Demands Answers on NNPC’s $3.3 Billion Loan

In a recent tweet, former Vice President Atiku Abubakar raised concerns about the lack of transparency surrounding the $3.3 billion emergency crude repayment loan secured by the Bola Tinubu-led administration.

Atiku urged the Federal Government to provide explanations for the questionable details surrounding the loan, emphasizing the need for openness in such economic decisions.

The loan, obtained on August 16, 2023, through the Nigeria National Petroleum Company (NNPC), was intended to support the Naira and stabilize the Foreign Exchange market. However, the Federal Government has remained silent on the matter, leaving the public with only unofficial information from NNPC sources.

The transaction involves a Special Purpose Vehicle (SPV) named Project Gazelle Funding Limited, incorporated in the Bahamas. The SPV, serving as the borrower, has an agreement with the NNPC as the sponsor to repay the loan through crude oil deliveries at an interest rate slightly above 12 per cent.

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What raises further questions is the choice of registering the SPV in the Bahamas, considering the recent Paradise Papers scandal associated with the country. The deal stipulates that Nigeria will supply 90,000 Barrels of its daily production, increasing to 164.25 million barrels for the loan repayment, starting from 2024.

The intricacies become more concerning when calculating the estimated repayment based on Nigeria’s crude benchmark price of $77.96 per barrel in 2024. The projected repayment amount is a staggering $12 billion, creating a significant disparity of about $7 billion from the details outlined in the deal.

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Atiku, on behalf of the ordinary people of Nigeria, demands answers from the Federal Government on the following key questions:

1. Has the Federal Government accessed the loan?
2. Is the loan included in the government’s borrowing plan approved by the National Assembly?
3. Who are the parties involved in the loan, and what roles are they expected to play?
4. What are the specific conditions of the loan, including tenor, repayment terms, collateral, and interest rate?
5. Why choose to register an SPV in the Bahamas, given the country’s recent scandalous reputation for housing unclean assets?

Atiku underscores the importance of transparency and accountability in such financial dealings, urging the government to address these concerns promptly.