Atiku presses Tinubu to explain use of $3.3b loan and why SPV is domiciled in The Bahamas
By Jeph Ajobaju, Chief Copy Editor
Atiku Abubakar of the Peoples Democratic Party (PDP) has asked Bola Tinubu to urgently provide information on the use of the $3.3 billion loan the federal government obtained in August 2023 as it seems funds (borrowed or internally generated) are beginning to disappear into private pockets under the new President, as it happened under Muhammadu Buhari his predecessor.
Abuja explained at the time that the emergency crude repayment loan was to stabilise the naira and foreign exchange (forex) market.
Atiku is not convinced this is the case.
“The curious thing about this transaction is that up till now, the Federal Government continues to keep mum about it, and the only information available to the public on the mega deal is coming only through unofficial sources from the NNPCL [Nigerian National Petroleum Company Limited],” he said in a statement.
“The deal is supposed to be a crude-for-cash loan arranged by the African Export-Import Bank.
“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.”
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SPV the borrower, NNPC the sponsor of loan
“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,” Atiku 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 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.
“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 whopping $12 billion.
“It is on this note that we are calling on the Federal Government to speak up on this shady deal.
$3.3b loan becomes $12b in repayment
“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.
“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.
“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?”
