Atiku Abubakar Calls for Transparency in NNPCL’s $3.3 Billion Emergency Crude Repayment Loan
In a recent development, Atiku Abubakar, the 2023 presidential candidate of the Peoples Democratic Party (PDP), has urged President Bola Tinubu to provide a comprehensive account of the $3.3 billion emergency crude repayment loan secured by the Nigerian National Petroleum Company Limited (NNPCL) on August 16, 2023.
The loan aims to strengthen the naira and stabilize the foreign exchange market, with the transaction arranged by the African Export-Import Bank. Atiku raises concerns over the lack of public information surrounding this substantial financial deal.
Details of the Loan
The Federal Government received $2.25 billion of the $3.3 billion foreign exchange facility from the bank three weeks ago.
Atiku emphasizes that the loan’s purpose extends beyond supporting the national currency; it is also intended to aid the Federal Government’s monetary and fiscal reforms.
However, the lack of transparency regarding the deal raises questions about the management of the country’s financial resources, particularly in significant transactions involving national assets like crude oil.
Special Purpose Vehicle and Bahamas Incorporation
Atiku reveals that the transaction is facilitated by a Special Purpose Vehicle (SPV) named Project Gazelle Funding Limited, incorporated in the Bahamas.
Expressing perplexity, he questions the choice of registering a company in the Bahamas, considering the country’s recent scandal involving the Paradise Papers.
Atiku underscores the importance of transparency and accountability in dealing with national assets and financial resources.
Concerns over Repayment and Deal Integrity
The SPV, identified as the borrower, and NNPCL, as the sponsor, have an agreement to repay the loan with crude oil, with an interest rate slightly exceeding 12 percent.
Atiku draws attention to the alarming details of the deal, stating that Nigeria is committed to supplying 90,000 barrels of its daily production, reaching up to 164.25 million barrels for loan repayment.
The estimated repayment amount of $12 billion raises significant questions about the accuracy and integrity of the deal.
Atiku’s Call for Government Accountability
Atiku stresses the need for the Federal Government to provide clarity on the transaction.
He questions whether the loan is part of the government’s approved borrowing plan, the conditions of the loan, the parties involved, and their specific roles.
Additionally, he queries the rationale behind registering an SPV in the Bahamas, given the country’s recent notoriety for housing unclean assets.
Atiku insists that the Federal Government must address these questions to uphold transparency and ensure accountability in financial dealings of this magnitude.
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