The National Youth Alliance is outraged by the Federal Government's dealings in obtaining a $3.3 billion emergency loan from the African Export-Import Bank on August 16, 2023. This loan, as revealed by former VP Atiku Abubakar, facilitated by the Nigerian National Petroleum Company Limited (NNPCL), is suspectedly shady, a blatant betrayal of Nigerians' trust, and a recipe for disaster.

The lack of transparency and accountability surrounding this deal is appalling. The government's claim that the loan is meant to support the Naira and stabilize the Foreign Exchange market is a mere smokescreen. The Naira's value has plummeted, and there is no evidence that the loan has been used for its intended purpose - if indeed they have accessed the loan!

The loan's terms are equally outrageous - an interest rate of 12% and repayment with 90,000 barrels of crude oil per day, starting from 2024. With the benchmark price for crude oil in 2024 at $77.96 per barrel, Nigeria is expected to repay a staggering $12 billion ($77.96 per barrel x 164.25 million barrels). This is nothing short of economic slavery.

We demand answers to the following questions:

- Is this loan part of the approved borrowing plan?
- How can Nigeria repay an estimated $12 billion when the loan amount is $3.3 billion and the repayment amount is estimated to be $3.906 billion as per the 12% interest?
- Who benefits from the extra estimated $8.094 billion?
- Why are the details of this deal shrouded in secrecy?

Unfortunately, the National Assembly has become a mere rubber stamp for the President, and is unlikely to investigate this controversial loan. But we will not sit and watch while our future is being mortgaged for selfish interests.


Signed,
Hon. Muhammed Mustapha Lapai
Deputy National Publicity Secretary
National Youth Alliance
August 18, 2024

trutharena:
You are not wrong. The loan is indeed controversial and shrouded in secrecy.