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Atiku Urges Tinubu’s Govt To Explain Details of $3.3bn Emergency Loan

by Editor
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A former Vice President Atiku Abubakar and the 2023 Peoples Democratic Party (PDP) presidential candidate, has charged the federal government to urgently provide detailed information on the $3.3 billion emergency loan it took last August.
The Nigerian National Petroleum Company Limited (NNPCL), last August, secured a $3.3 billion emergency crude repayment loan from the African Export-Import Bank (Afreximbank) to stabilize the foreign exchange market. The United Bank for Africa Plc (UBA) acted as the Local Arranger and Onshore Account Bank.
The deal, is believed to be Nigeria’s largest crude oil prepayment facility and one of the largest syndicated loans raised in Africa in 2023.
A fortnight ago, Afreximbank said “an initial disbursement of US$2.25 billion has been made, while a second tranche of US$1.05 billion is expected to be disbursed subsequently.”
But reacting to the transaction in a statement, Atiku insisted there are questions to be answered on the integrity of the deal.
Atiku noted that a Special Purpose Vehicle called Project Gazelle Funding Limited is driving the deal, and it was incorporated in the Bahamas, despite the recent scandal of the Paradise Papers that involved that country (Bahamas).
The erstwhile VP observed that the only information available to the public on the deal came through sources from the NNPCL.
Atiku said: “The deal is supposed to be a crude-for-cash loan arranged by the African Export-Import Bank.” He added: “According to information available, a Special Purpose Vehicle (SPV), called Project Gazelle Funding Limited, is driving the deal, and it was incorporated in the Bahamas.

“The SPV is the borrower, while the NNPCL is the sponsor, with an agreement to pay with crude oil to the SPV to liquidate the loan at an interest rate that is a little over 12 per cent.”

“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 Paradise Papers that involved that country.

“Curiously also, Nigeria’s current barrel produced daily (bdp) 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.”

He further added: “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 $12 billion.”

“There are questions to be answered on the integrity of this deal, and we earnestly request the Federal Government to talk directly on these cloudy details behind the deal”, he declared.

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