Atiku Raises Concerns Over NNPCL’s $3.3bn Loan and $12bn Crude Oil Repayment Plan Under Tinubu’s Leadership

Former Vice President Atiku Abubakar has expressed significant perplexity regarding a substantial $3.3 billion emergency crude oil repayment loan. This loan, obtained by the Nigerian National Petroleum Company Limited (NNPCL) and facilitated by the African Export-Import Bank (Afrieximbank) in 2022, is a point of contention.

This financial arrangement emerged during a period marked by the dramatic decline of the Nigerian Naira against the US Dollar. According to NNPCL, the loan was intended to bolster the Naira and ensure stability in the Foreign Exchange market.

Atiku has raised concerns about the terms of this loan, noting that it involves repaying with crude oil valued at an estimated $12 billion. He emphasizes that this arrangement, under President Bola Tinubu’s administration, necessitates a thorough explanation to the Nigerian public.

The former Vice President also questioned the decision to establish a Special Purpose Vehicle (SPV) for this transaction in the Bahamas, a location known for its association with illicit financial activities.

Atiku communicated his apprehensions through a series of posts on his verified X handle (previously known as Twitter). As a prominent figure of the opposition Peoples Democratic Party (PDP), he posed five critical questions about this significant economic move by the Tinubu government. His concerns stem from the government’s ongoing silence regarding the specifics of this deal.

In his posts, Atiku detailed that on August 16, 2023, the Federal Government, through NNPC, secured this controversial loan. The transaction was driven by Project Gazelle Funding Limited, an SPV incorporated in the Bahamas. This arrangement stipulates that the loan will be repaid with crude oil, at an interest rate slightly above 12%.

Furthermore, Atiku highlighted the intriguing aspect of the deal involving Nigeria’s current crude oil production. According to the agreement, Nigeria will allocate 90,000 barrels daily from its production, starting in 2024, amounting to a total of 164.25 million barrels for loan repayment.

With Nigeria’s 2024 crude oil benchmark set at $77.96 per barrel, the total repayment would astonishingly reach around $12 billion. This staggering amount prompts Atiku to call for transparency from the Federal Government, particularly considering the significant discrepancy between the loan amount and the estimated repayment.

Atiku, advocating for the Nigerian populace, demands that the government address several key issues, including whether the loan has been accessed, its inclusion in the government’s borrowing plan, details of the parties involved, specific loan conditions such as tenure and interest rate, and the rationale behind registering an SPV in the Bahamas.

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