Makinde’s campaign group demands probe of Tinubu’s N11.2trn crude oil-backed loans

The presidential campaign organisation of Oyo State Governor Seyi Makinde has called for an open investigation into the federal government’s reported commitment of about 340 million barrels of Nigeria’s future crude oil production to secure loans estimated at N11.2 trillion.

The Makinde-Daura Presidential Campaign Organisation (MDPCO) accused President Bola Tinubu’s administration of committing future oil revenues to debt obligations without sufficient public disclosure, warning that the arrangements could constrain Nigeria’s finances for years.

In a statement on Thursday, the organisation’s Director of Strategic Communications, Richard Ihediwa, said the reported loans were obtained through four financing arrangements: Project Gazelle, Project Gazelle II, Project Leopard and Project Leopard II.

It demanded that the federal government disclose the identities of the lenders, the amounts borrowed, interest rates, management fees and repayment schedules, as well as the precise volume of crude oil committed under each arrangement.

“President Tinubu should give a public explanation on the loan arrangements,” the organisation said.

It also called for the disclosure of the pricing formula for the crude oil deliveries, the outstanding liabilities being refinanced and the full financial implications of the transactions.

The campaign organisation described the reported arrangements as fiscally reckless, arguing that the government was committing future oil revenues to finance present expenditure without demonstrating corresponding investments in industrial development, infrastructure and improved living standards.

It warned that fixed repayment obligations could limit Nigeria’s ability to benefit fully from increases in international crude oil prices, potentially reducing future government revenues and restricting the country’s fiscal flexibility.

The organisation also recalled its earlier warning that Mr Tinubu was leading Nigeria towards what it likened to the financial predicament of 19th-century Egypt under Khedive Ismail.

It said excessive foreign borrowing and spending under the Egyptian ruler eventually contributed to British occupation of the country in 1882.

“A nation that repeatedly pledges its future revenues to finance present excesses risks surrendering its economic independence,” the campaign organisation said.

Calls for National Assembly scrutiny

The organisation said the reported borrowing arrangements were particularly concerning amid the economic difficulties facing Nigerians, including hunger, poorly funded public hospitals and deteriorating highways.

It argued that commodity-backed financing arrangements should be subjected to public scrutiny and demonstrate clear economic returns and measurable benefits to citizens.

“We therefore task the National Assembly to subject these financing arrangements to rigorous legislative scrutiny including an open public hearing,” the campaign organisation stated.

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It said such a hearing should establish the full extent of Nigeria’s crude oil commitments and assess the implications for Federation Account revenues and the country’s long-term fiscal sustainability.

“Economic success is not measured by borrowing or debt restructuring, but by tangible gains in production, jobs, infrastructure, industry and living standards,” it said.

PREMIUM TIMES reported Thursday how Governor Makinde, who is contesting next year’s presidential election on the platform of the Allied People’s Movement (APM), criticised the handling of the economy by President Bola Tinubu who is seeking reelection as the presidential candidate of the All Progressives Congress.

Mr Makinde, who will complete his second and final term as governor in May 2027, recalled supporting Mr Tinubu to win the 2023 presidential election. He said he withdrew his support for Mr Tinubu and decided to vie for the presidency himself after being disappointed by the president’s performance.