The Project Gazzelle is such a straightforward 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.

Talking about the FG owing Nigerians an explanation, Alhaji Atiku is late to the party, as usual, as the presidency had done the needful on explaining the deal to Nigerians few days ago.

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

1. 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.

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

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

4. ⁠For repayment, an eventual increase in oil prices will result in the SPV returning all excesses to the seller(NNPCLtd) 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)

5. ⁠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.

6. ⁠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.

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 advice him duly before rushing to make public comments going forward.

Olusegun Dada is the Special Adviser on Social Media to President Tinubu

Previous Thread:
https://www.nairaland.com/7981355/tinubus-govt-owes-nigerians-explanation

Stop glorifying idiots and nincompoops with replies which they can't understand because of their level of literacy

K

Huh...

Atiku is a flop as always

Shi.t

Okay.

Tinubu is a known criminal but even though it is weird, it looks like he will do well for this country. He will definitely steal but he will do well from all indication.

Yes, naira is now 1400 to a dollar but that will be a lame way of analysing things. More than 75% of his steps so far has been good steps unlike Buhari.

I pray he succeeds as my success as a Nigerian is much more and better when the country succeeds.

1. Has the Federal Government accessed the loan?
2. Is the loan in the government’s borrowing plan as approved by the National Assembly?
3. Who are the parties to the loan, and what specific roles are they expected to play?
4. What are the conditions to the loan, including tenor, repayment terms, the collateral, and the interest rate?
5. And, lastly, why register an SPV in the Bahamas knowing the recent scandal of the country’s notoriety for warehousing unclean assets?

-AA

These are the questions Atiku asked, did this guy answer them?

Thank to atiku's inquiry we have been offered better explanation .

Gazelle gara-gara

In a common laymAn terms

Exchanging certain amount of cruel oil for certain amount of dollars for government to use in bridging the cap of dollars insufficiency


Tinubu is the worst criminal on earth


Deceiving the masses

When subsidy had been removed and you turn around to sealed another deal to make more dollars availablity for you and cabals


9ja my country

I fear thee my leaders 😭😭😭😭

This is what we called Dogon Nturenshi.... Long English ...

At the end no meaning or meaningful outcomes

Leave talk

Normally, this deal can be consummated through investment banks. Infact, firms like FMDQ can handle these kind of deals.

But this SPV was incorporated in the Bahamas for one reason, to hide the investors in the SPV.

Why would these investors want to be hidden? Because they are Nigerians.

It is thus clear that this is an attempt by BAT to get many of his thieving colleagues to bring out the dollars hidden in their vaults and in overseas accounts and put it back into the economy.

Frankly, I think it's a great idea. However, the fundamentals in governance still haven't been fixed.
These same thieves are still stealing unabashedly, and can still steal, go to the forex market (which should be trying to recover) and buy up any available forex at any rate (it's stolen money, rates don't matter to them) thereby crowding out thise that really need the forex.

Until those fundamentals are fixed, the market would have no chance of recovering.

Which is why I don't believe in BAT. He is all about the politics, and when the choice comes down to good politics or good governance, he always goes for politics. Patriotism is just a buzzword for them. They don't have an iota of it.

Life is boxing match, once your opponents smell blood, they move in to finish you.
The moment Chief Tinubu entered the agreement to sale at reduced price, it showed his weaken position financially, That was the beginning of the free fall. This guy have just shut up, looking at his weak submission as a reply. Well this government will favour me and my family.

One TINUBU is better than one million Atiku...

.

..read the incoherent jargons from a gazelle garangaja Decoder

..the fool just proved Atiku was right with his assertions & questions..

..the only people who understands this fool are are thesame people who understand the language of roasted electricity with a down payment

Thieves

Somebody should further explain this complex economics to that 3rd class container economy trader

What's the interest rate? That's a crucial detail that's missing from this explanation.

These clowns can keep deceiving themselves but super smart folks like me already know what's up... Corrupt Nigerian politicians have started borrowing the country looted funds in exchange for unholy profit, if you are smart you will know it's politicians fronting that ,3.3bn dollars

The kind of stories and defence these ppl churn up whenever some of these issues come up is just embarassing

Nothing about Tinubu is straightforward

Encrypted leaders

Its good you are maKing these explanations but atiku raised very salient points and issues wouldn't have arisen if these clarifications were made on time. Again I still feel this oil for cash thing ìs prone to a lot of fraud considering the explanations given so far

Crude oil swap deal, dollars have been collected, crude oil will be delivered lastest in 50 years time