House Of Reps To Investigate Alleged $8 Billion Shortfall In NNPC Oil...

House Of Reps To Investigate Alleged $8 Billion Shortfall In NNPC Oil Deal

By Chidinma Unigwe | Sub Editor on June 24, 2015
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The House of Representativesis to set up an ad hoc committee to investigate a purported $8 billion shortfall in an oil deal brokered by the Pipeline and Products Marketing Company (PPMC), which is a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

The motion was initiated by Michael Enyong (PDP, Akwa Ibom), and titled: “Urgent need for a forensic Investigation of the contract known as ” Refined products Exchange Agreement or Swap Contract “between the Pipeline and Products Marketing Company ( PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) and Oil Trading Companies”

Enyong argued that the Refined Products Exchange Agreement or SWAP of 445, 000 Barrels per day were awarded to nine companies namely: Sahara Group, Aiteo, Duke Oil, Mercurial, Glencore, Taleberas Nig. Ltd, Etena Oil and Gas, Transfigura and Ontario Oil and Gas.

A breakdown showed that Sahara Group, received 90,000 barrels per day (BPD) through an agreement with Societe Ivorienne De Refinage, Aiteo received 90,000 BPD, Ontario Oil and Gas Nig. Ltd received 30,000 BPD.

He said: “While one barrel, of crude equals to 159 litres, the 445,000 barrels awarded to the above companies per day, when multiplied by 159 litres would amount to 70, 755, 000 litres per day. Whereas Nigeria consumes 40,000,000 litres per day.”

The lawmaker also noted that the Nigerian Extractive Industries Transparency Initiative (NEITI) had revealed in its 2009, 2011 and 2012 reports that there was a shortfall of about $8 billion owing to the difference between the amount of crude oil given out and the volume of refined product delivered.

The motion which was supported by Femi Gbajabiamila (APC, Lagos) was opposed by majority leader, Leo Ogor and Nnanna Igbokwe (PDP, Imo).

Speaker of the House of Representatives, Yakubu Dogara ruled that an ad hoc committee would be set up to begin investigation into the matter.

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