In Nigeria, you are 83 percent sure to find fraud wherever you look, but NNPC, like the police always assures you of fraud whenever you probe them.
The Group Managing director of NNPC, Austine Oniwon, told the senate committee investigating the management of Nigeria’s fuel subsidy that he was ignorant of the whereabouts of 65,000 barrels out of the 445,000 barrels of crude allocated to NNPC daily.
Mr. Oniwon explained that NNPC entered into a swap deal – crude for refined PMS – with three refineries 210,000 barrels per day while 170,000 is refined by local refineries daily.
Duke Oils, a subsidiary of NNPC gets a swap deal worth 90,000 barrels per day, while Transfigura UK and SIR, an Ivorian refinery with a refining capacity of 80,000 bpd, gets 60,000 barrels per day each.
Mr. Oniwon could not however account for the utilization of the balance of 65,000 barrels per day – crude oil worth USD6.5 million (N1.033 billion) daily and USD195 million (N31.005 billion) monthly.
When probed by the lawmakers, the GMD who admitted that NNPC has gained up to N2.157 trillion from the subsidy scheme since 2006 also failed to give an account of the volume and value of PMS it receives in return for its various swap deals.
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