Former Nigerian Vice President Atiku Abubakar has called upon the Bola Tinubu-led administration to provide clarity on the utilization of the $3.3 billion emergency crude repayment loan, secured through the Nigeria National Petroleum Company (NNPC) in August 2023.
In a statement released on Thursday, January 25, 2024, Atiku expressed concern over the lack of official information on the transaction, emphasizing the need for transparency.
According to Atiku, the loan, aimed at supporting the Naira and stabilizing the Foreign Exchange market, involves a Special Purpose Vehicle (SPV) named Project Gazelle Funding Limited, incorporated in the Bahamas. Atiku raised questions about the choice of location, considering the recent Paradise Papers scandal involving the country.
The former Vice President highlighted the peculiarities of the deal, emphasizing that the Federal Government has been silent on the matter, leaving the public reliant on unofficial sources from the NNPC for information. Atiku stated that the SPV, Project Gazelle Funding Limited, serves as the borrower, while the NNPC acts as the sponsor.
Under the terms of the arrangement, Nigeria is expected to supply 90,000 barrels of its daily production, beginning in 2024, until it reaches 164.25 million barrels for the repayment of the loan. Atiku pointed out that, based on Nigeria’s daily production benchmark of 1.38 million Barrels Produced Daily (BPD) and the projected crude sale price of $77.96 per barrel in 2024, the estimated repayment amounts to a substantial $12 billion.
Expressing disbelief at the significant difference between the projected repayment and the loan amount, Atiku called on the Federal Government to address several key questions in the interest of transparency and accountability. Among the questions posed were whether the government had accessed the loan, its inclusion in the National Assembly-approved borrowing plan, the parties involved, specific roles, conditions such as tenor and interest rate, as well as the reasoning behind registering an SPV in the Bahamas.
Atiku concluded the statement by urging the government to provide direct and comprehensive answers, stating that the Nigerian people deserve clarity on the “cloudy details” surrounding the deal.
