Yemisi Izuora
The Nigerian National Petroleum Corporation (NNPC) has decided to embark on selling and buying oil and petrol directly to do away with middlemen and curb graft.
The major policy turn around is in line with President Muhammadu Buhari’s plan to halt corruption endemic in the industry.
The previous administration of President Goodluck Jonathan had ignored warnings from Central Bank Governor Lamido Sanusi that some $20 billion in oil sales over three years was missing from federal government purse but instead he fired Sanusi.
Nigeria produces 2 million barrels of crude a day, according to the corporation’s website.
Nigeria’s local fuel consumption is about 9 million litres (2.4 million gallons) daily, which is almost all imported because local refineries are inefficient.
One barrel of crude produces about 30 gallons of diesel or fuel.
A statement from NNPC spokesman Ohi Alegbe said the decision was made after a screening of previously used and prequalified petroleum product importers revealed almost all the 34 international and 10 local companies were middleman businesses.
The shift is “a major steer designed to enshrine transparency and eliminate the activities of middlemen in the crude oil exchange,” said the statement.
One of Buhari’s first acts as president was to fire all the old managers.
Corruption that thrived under Jonathan’s watch had favoured officials being sold entire shipments of crude at favourable rates so they could pocket the profits.
The U.S. Department of Justice warned Buhari earlier this year that one minister had pocketed $6 billion from oil sales.
The massive thefts came as oil prices topped $110 a barrel.
Now Nigeria seem to be in crisis, with halved prices for the oil that provides 80 per cent of government revenue and Buhari has complained he inherited an emptied treasury.