Tinubu Told to Explain $3.3bn NNPCL Deal

President Bola Tinubu has been told to provide an explanation for the Nigerian National Petroleum Company Limited (NNPCL)’s $3.3 billion emergency crude repayment loan.

Atiku Abubakar, the 2023 presidential candidate of the Peoples Democratic Party(PDP)made the request in a statement on Thursday.

The NNPCL secured the loan on August 16, 2023, with the aim of supporting the naira and stabilizing the foreign exchange market.

The loan was arranged by the African Export-Import Bank and was also intended to support the Federal Government’s monetary and fiscal reforms.

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The Federal Government received $2.25 billion out of the $3.3 billion FX facility from the African Export-Import Bank three weeks ago.

Atiku stated that the only information available to the public about the deal is coming from sources within the NNPCL.

He also revealed that a Special Purpose Vehicle (SPV) called Project Gazelle Funding Limited is driving the deal and that it was incorporated in the Bahamas.

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.

“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.

“Has the Federal Government accessed the loan? Is the loan in the government’s borrowing plan as approved by the National Assembly? Who are the parties to the loan, and what specific roles are they expected to play? What are the conditions of the loan, including tenor, repayment terms, the collateral, and the interest rate?

“And, lastly, why register an SPV in the Bahamas knowing the recent scandal of the country’s notoriety for warehousing unclean assets.”