Presidency tackles Atiku over claim on NNPC’s $3.3b loan – Newstrends
Connect with us

News

Presidency tackles Atiku over claim on NNPC’s $3.3b loan

Published

on

Former Vice President Atiku Abubakar

Presidency tackles Atiku over claim on NNPC’s $3.3b loan

The Presidency yesterday tackled former Vice President Atiku Abubakar over his request for an explanation from the President Bola Ahmed Tinubu Administration on the emergency $3.3 billion loan sourced by the Nigeria National Petroleum Corporation Limited (NNPCL).

In a statement, Atiku had said the administration owed Nigerians an explanation for the emergency crude-for-cash loan arranged by the African Export-Import (AFREXIM) Bank.

But the Special Assistant to the President on Social Media, Segun Dada, said the former Number Two Citizen got the wrong information.

“The Project Gazzelle is such a straight-forward deal that I do not expect Alhaji Atiku, who prides his whole political aspirations on being an economic reformer, to fumble the simple numbers behind it,” the presidential assistant said.

Atiku said the AFREXIM facility was meant to prop up the naira and stabilise the Foreign Exchange (FOREX) market.

He said: “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.

“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.

“The 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.

READ ALSO:

“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 whopping $12 billion.”

Among other questions, Atiku asked:

* 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 to 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?

But Dada said the former Vice President missed the point.

He said: “Talking about the Federal Government owing Nigerians an explanation, Alhaji Atiku is late to the party, as usual, as the Presidency had done the needful by explaining the deal to Nigerians few days ago.

“For record purposes and to save Alhaji Atiku from his self-imposed mystery, here are some explanations to his questions about the conditionalities of the loan in a simpler language.”

The presidential aide listed the facts as follows:

* The facility is a forward sales agreement between NNPC Limited and an SPV (the buyer) where a predetermined number of barrels of oil is sold in advance at an agreed price.

READ ALSO:

* The sales allow the seller (NNPC Limited in this case) to use the received payment to solve critical and urgent problems with forex scarcity as the problem in Nigeria’s case.

* A lower benchmark is usually adopted as a safe haven for the buyer (the SPV) as oil price tends to remain unstable most times.

* For repayment, an eventual increase in oil prices will result in the SPV returning all excesses to the seller (NNPC Limited) while the risk, which could lead to a rearrangement of the terms, is a significant decrease in the agreed price (this case $65 per barrel)

* Oil has been averaging $70-75 per barrel since the deal was agreed, and if things stay the same way, Nigeria will be getting refunds of excess amounts from the SPV once the payment is concluded.

* There is a very big chance that the repayment will be concluded before the agreed time, if oil prices continue to increase, as NNPCL had penned a 90,000 barrel per day, which will eventually be calculated at the current prices.

* Repayment stops when the agreed amount + interest is fully paid and Nigeria may be liable to refunds, were there to be excesses.

Dada added: “I hope Alhaji Atiku, being an elder statesman, will allow the financial expert in charge of the country to continue devising innovative ways of funding our expenditures while he surfs his archives for more promising economists who will advise him duly before rushing to make public comments going forward.”

Presidency tackles Atiku over claim on NNPC’s $3.3b loan

News

Fubara speaks on Rivers tanker explosion, pledges support for affected families

Published

on

Fubara speaks on Rivers tanker explosion, pledges support for affected families

Rivers State Governor Siminalayi Fubara has characterised the fire incident caused by a tanker transporting Premium Motor Spirit, also known as petrol, as extremely regrettable since it burned motorists and commuters beyond recognition and damaged multiple vehicles.

Fubara pointed out that the collision could have been averted if the drivers had been more cautious.

On Friday night, an explosion occurred between Indorama Gate and Aleto Bridge on the popular and bustling Eleme portion of the East-West Road, which is currently undergoing extensive redevelopment by the Federal Government.

Fubara expressed concern at the terrible sights he witnessed when visiting the scene of the event on Saturday morning, accompanied by the state commissioner of police, Olatunji Disu, and the commissioner of energy and natural resources, Mr. Uchechukwu Nwafor.

Nelson Chukwudi, the Governor’s Chief Press Secretary, released a statement to the media.

Fubara stated that he received a call from the Managing Director of Indorama Petrochemical and Fertiliser Company Limited in Eleme Local Government Area, telling him of the tragedy.

When Fubara learned of the occurrence, he quickly routed a call to security agencies and asked them to visit the location to take command of the area’s security in order to prevent the situation from escalating.

READ ALSO:

Fubara stated, “We are here to see for ourselves and get first-hand information about the incident that happened yesterday night.

“About 7.30–8 pm, we got information on the gravity of the incident. I was told that it was caused by a tanker vehicle that was conveying Premium Motor Spirit.

“I got the information through the MD of Indorama, and I immediately alerted the security agencies to make sure they took control of the security situation in the area.

“And from what we are seeing this morning, it was not a pleasant case. We recorded a huge number of vehicles destroyed and lives lost.”

Fubara explained that he had already requested that the relevant government agencies provide him with a detailed account of their findings so that the state government could make appropriate decisions and actions to significantly improve the situation and reduce the negative impact on the affected people.

“I have already asked the relevant agencies to give us a full brief so that we can come into the situation fully by seeing how much we can support the bereaved families and also cushion the effect of the losses, which I believe is no fault of a good number of them.

“We all know the situation on this road. It is really unfortunate. Most of our people, when plying this road, should do so with caution.

“I believe very strongly that this situation would have been avoidable if the motorists had behaved properly. But it is late already. The damage has happened. This is the situation we have found ourselves in. We will see how we can control the aftermath,” he added.

Fubara speaks on Rivers tanker explosion, pledges support for affected families

Continue Reading

News

Yahaya Bello: Prosecute US school over advance tuition fee payments, Sowore tells EFCC

Published

on

Omoyele Sowore

Yahaya Bello: Prosecute US school over advance tuition fee payments, Sowore tells EFCC

Omoyele Sowore, a prominent Nigerian activist, has called for the prosecution of the American International School (AIS) in Abuja for alleged money laundering involving former Kogi state governor Yahaya Bello and his former Chief of Staff, Ali Bello.

In a post on X, Sowore alleged that Bello and his aide laundered close to $1 million under the guise of paying “future school fees” for their children at AIS.

He argued that similar to the American justice system, the AIS should face charges instead of simply refunding the money.

He further urged the Economic and Financial Crimes Commission (EFCC) to ensure that the school discloses all such payments made by Politically Exposed Persons (PEPs). Sowore believes that investigating such payments could reveal widespread financial misconduct and calls for AIS to be converted into a public school if found guilty.

READ ALSO:

His words: “The American International School @AISAbuja , where fugitive former Kogi state governor Yahaya Bello @OfficialGYBKogi and his former Chief of Staff, Ali Bello, laundered close to $ 1 million in the name of paying “future school fees” of their wards should be charged and prosecuted for money laundering instead of being allowed to refund the money.

“This is the way the American justice system treats such cases on US soil, the @officialEFCC must also ensure the school discloses all such school fees paid by Politically Exposed Persons (PEPs).

“I am sure there are a lot of discoveries that would be uncovered such that the school could be converted to a public school instead of its criminal connivance with financial criminals fleecing the Nigerian public across board, these must necessary apply to these ultra-expensive private schools in Nigeria.”

Yahaya Bello: Prosecute US school over advance tuition fee payments, Sowore tells EFCC

Continue Reading

News

Why we praised Aviation minister Keyamo after Dana Air incident – Northern group

Published

on

Minister of Aviation and Aerospace Development, Festus Keyamo

Why we praised Aviation minister Keyamo after Dana Air incident – Northern group

The Coalition of Northern Patriots (CNP) has hailed the Honourable Minister of Aviation and Aerospace Development, Festus Keyamo SAN, for prioritising the safety and well-being of air travellers.

The group stated this in a statement signed by its president Kudu Mohammed in reaction to the suspension of the Air Operator Certificate (AOC) of Dana Airlines.

The Nigeria Civil Aviation Authority (NCAA), on Wednesday, announced the airline’s suspension after its aircraft (MD82 with registration marks 5SN-BKI) skidded off the Murtala Muhammed Airport, Lagos runway.

In reaction, Mohammed said Keyamo is restoring dignity and confidence to the sector with innovative reforms in line with global best practices, always promoting national security interest as a patriot.

Mohammed said in the aviation business that there is no margin for error. Hence, all protocols must be strictly adhered to, and that is what Keyamo has done.

“The suspension of the operations of Dana Airlines is a welcome development,” the statement said. “As we all know, this is the second time within two years that Dana Air’s AOC has been suspended over safety violations.

READ ALSO:

“In 2022, the airline’s operation was halted after the outcome of a financial and economic health audit carried out on the airline by the regulatory authority came out negative.

“This time around, though, thankfully, we have an Aviation Minister whose priority is the safety and well-being of travellers unafraid to make painful decisions for the good of the nation.

“We have a man who never compromises and strongly holds on to his principles. Mr Keyamo has already introduced some innovative reforms in line with global best practices. He has carried out a thorough cleansing of the polluted sector he inherited.

“We, therefore, pass a vote of confidence on his leadership. Of course, we are aware that he is not the most-loved minister due to his transparent and resolute approach.

“However, we want to let Mr Keyamo know that the masses are with him.”

The group, therefore, urged him to remain a fearless advocate of the masses and never to allow himself to be silenced by detractors.

Why we praised Aviation minister Keyamo after Dana Air incident – Northern group

Continue Reading

Trending

Skip to content