From Premium Times Nigeria · Abubakar Abdulrasheed · · 3m
Makinde’s campaign group demands probe of Tinubu’s N11.2trn crude oil-backed loans
Makinde’s campaign group calls for federal government to investigate Tinubu’s N11.2trn crude oil-backed loans.
In brief
Makinde’s campaign group calls for federal government to investigate Tinubu’s N11.2trn crude oil-backed loans. Makinde’s campaign group demands federal disclosure of Tinubu’s N11.2trn crude oil-backed loans to prevent fiscal risks. Originally reported by Premium Times Nigeria.
Makinde’s campaign group demands probe
Makinde’s campaign group demands federal government disclose lenders, loan amounts, interest rates, management fees, repayment schedules, and crude oil commitments.
Reported N11.2trn crude oil-backed loans
The campaign group reported that President Tinubu’s administration committed about 340 million barrels of Nigeria’s future crude oil production to secure loans estimated at N11.2 trillion.
Four financing arrangements
The campaign group identified four financing arrangements: Project Gazelle, Project Gazelle II, Project Leopard, and Project Leopard II.
Fiscally reckless
The campaign group described the reported arrangements as fiscally reckless, arguing the government committed future oil revenues to finance present expenditure without corresponding investments in industrial development, infrastructure, and living standards.
Risk of financial constraints
The campaign group warned fixed repayment obligations could limit Nigeria’s ability to benefit from increased international crude oil prices, potentially reducing future government revenues and restricting fiscal flexibility.
Historical analogy
The campaign group recalled its earlier warning that President Tinubu was leading Nigeria toward the financial predicament of 19th-century Egypt under Khedive Ismail.
Risk of British occupation
The campaign group said excessive foreign borrowing under Khedive Ismail contributed to British occupation of Egypt in 1882.
Economic risks
The campaign group warned that pledging future revenues to finance present excesses risks surrendering economic independence.
Current economic challenges
The campaign group highlighted economic difficulties facing Nigerians, including hunger, poorly funded public hospitals, and deteriorating highways.
Call for National Assembly scrutiny
The campaign group tasked the National Assembly to subject the financing arrangements to rigorous legislative scrutiny including an open public hearing.
Public hearing requirements
The campaign group stated such a hearing should establish Nigeria’s crude oil commitments and assess implications for Federation Account revenues and long-term fiscal sustainability.
Economic success criteria
The campaign group said economic success is measured by tangible gains in production, jobs, infrastructure, industry, and living standards, not borrowing or debt restructuring.
Makinde’s political shift
Seyi Makinde, who withdrew support for President Tinubu after being disappointed by his economic performance, is contesting next year’s presidential election on the Allied People’s Movement platform.
What happens next
The National Assembly is expected to subject the financing arrangements to legislative scrutiny to prevent fiscal risks and ensure economic independence.
The essence
Makinde’s campaign group demands federal disclosure of Tinubu’s N11.2trn crude oil-backed loans to prevent fiscal risks.
