Presidency Clarifies NNPC’s $3.3 Billion Emergency Loan Amid Atiku’s Inquiry

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The Presidency has responded to the 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, over the Nigerian National Petroleum Company Limited’s (NNPCL) $3.3 billion emergency crude repayment loan.

The loan, secured on August 16, 2023, was designed to bolster the naira and stabilize the foreign exchange market.

Atiku Abubakar, in a statement, called on President Bola Tinubu to provide a detailed account of the repayment loan, stating that the only available details were emerging from sources within the NNPCL.

He highlighted that the transaction is being facilitated by a Special Purpose Vehicle named Project Gazelle Funding Limited, which was incorporated in the Bahamas.

Reacting to Atiku’s query, presidential aide, Otega Ogra, stated that the Tinubu administration has taken the time to educate all Nigerians further on the loan at various times.

He explained that the loan, also known as Project Gazelle, is a financing agreement secured by NNPC Limited to prepay future royalties and taxes to the federal government.

Ogra further stated that NNPC Limited’s project is a forward-thinking financial strategy that aligns operational needs with broader economic goals by utilizing future crude oil sales for immediate funding, enhancing liquidity, and contributing to Nigeria’s foreign exchange reserves.

He noted that the repayments are strategically planned and tied to future oil sales, with conservative pricing in oil sales contracts mitigating the risks associated with oil price volatility.

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