Former Vice President Atiku Abubakar has ignited a potential firestorm, demanding President Bola Tinubu provide full transparency on a mammoth $3.3 billion loan secured by the Nigerian National Petroleum Company Limited (NNPCL).
In a statement issued Thursday, Atiku questioned the lack of publicly available information surrounding the deal, raising concerns about potential irregularities and prompting calls for accountability.
His primary objection rests on the apparent shroud of secrecy surrounding the loan. Atiku expressed surprise that details of such a significant transaction, involving one of the country’s most critical economic entities, are only emerging through leaks and anonymous sources within the NNPCL.
This lack of transparency, he argues, fuels suspicions and raises crucial questions about the rationale behind the loan and the terms of the agreement.
Furthermore, Atiku sheds light on a potentially concerning aspect of the deal: the involvement of a “Special Purpose Vehicle” called Project Gazelle Funding Limited. Incorporated in the Bahamas, a jurisdiction often associated with opacity in financial dealings, this entity serves as the conduit for the loan, prompting further scrutiny and concerns about potential lack of accountability.
He said, “SPV is the borrower while the NNPCL 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.”
The statement added “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 the Paradise Papers that involved that country.
“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.
“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 $12bn.
“It is on this note that we are calling on the Federal Government to speak up on this shady deal.
“It is inconceivable that the Federal Government will lead the country to take a loan of $3.3b with an interest rate that is not more than 12 percent, but with estimated repayment amounting to $12bn.
“That is a humongous differential of about $7b between what is in the details of the deal on paper and what indeed is the reality.”
