A damning report lifts the veil on how state oil
company, NNPC, is joining forces with foreigners to
steal crude oil, robbing Nigeria of billions of dollars.
—————————–
The process by which the Nigerian National
Petroleum Corporation, NNPC, selects trading
companies to which it sells Nigeria’s crude oil is
characterised by monumental corruption and intense
uncertainty. A report has likened the arrangement to
a “beauty pageant.”
In some instances, according to the report, the NNPC
collude with foreign companies to facilitate the
stealing of Nigerian crude with firms without
allocations lifting oil from the country’s shores.
The report, “Big Spenders: Swiss Trading Companies,
African Oil and the Risks of Opacity, published by
Bern Declaration, BD, a Switzerland-based non-profit
transparency organisation, examined the processes
involved in the sales of crude oil to Swiss commodity
trading companies by SubSaharan African countries
between 2011 and 2013.
The report was co-authored by another Swiss NGO,
Swissaid, and an American one, the Natural Resource
Governance Institute (NRGI).
The report observed that Swiss companies purchased
over 500 million barrels of crude valued at $55
billion from 10 sub-Saharan African countries within
the period under review. According to BD, the figure
“equal(s) 12 percent of the governments’ revenues,
and are double what they received in foreign aid.”
Pointing out that Swiss trading companies are the
largest buyers of crude from Cameroon, Chad,
Equatorial Guinea, Gabon and Nigeria, BD states that
these purchases are subject to governance risks
because “they take place in environments of weak
institutions and widespread corruption”.
In Nigerian, for instance, BD puts the value of crude
sold to Swiss trading companies at $37 billion which
makes up more than 18 per cent of total government
revenue in the period under review.
It observed that unlike most major crude producers
around the world, which prefer to sell crude directly
to refineries and end users, the Nigerian National
Petroleum Corporation, NNPC, sold over a third of
Nigeria’s crude between 2011 and 2013 to Swiss
companies alone.
“In 2011 and 2012, Swiss companies bought almost
half of the identified export sales made by the
Nigerian National Petroleum Corporation (NNPC), an
estimated $27 billion worth of crude. While this
figure dropped to a little less than one third in 2013,
as Nigerian companies became bigger buyers, Swiss
companies still bought government crude worth an
estimated $10 billion,” the report stated.
“Beauty Pageant”-type process
According to BD the annual term contract through
which the NNPC selects companies that are eligible to
buy crude is so skewed by favouritism and corruption
with its criteria for selection so opaque that it
could only be likened to the process of selecting the
winner of a beauty pageant.
The report states that many of the trading companies
on the list are allowed to lift far more that the
quantity they are officially allotted.
“In 2012, Vitol and Trafigura each received term
contracts worth 30,000 barrels per day. Each of the
companies also operates its own oil marketing joint
venture with NNPC (both based in Bermuda:
Calson for Vitol and Napoil forTrafigura), and these
entities each received additional 30,000 barrel per
day allocations that year.
“However, rather than 60,000, market data suggests
that Vitol bought closer to 145,000 barrels per day in
2012, and Trafigura 97,000—far exceeding their
allotted shares, and a discrepancy that illustrates the
laxity of the system.”
In fact some companies, which do not appear on the
award list, are allowed to lift crude. Particular
mention was made of Swiss firm, Arcadia, which
lifted 19 cargoes between 2011-2013 despite not
being approved to lift crude.
“Nigeria’s award of the term contracts is a
discretionary and politicized process, with companies
gaining and losing allocations depending on their
relationship with the officials in charge and
the influence of their local contacts or ‘sponsors,” the
BD report states.
http://m.premiumtimesng.com/news/165303-how-nnpc-is-colluding-with-swiss-traders-to-steal-nigerias-crude-oil.html

The looting has been ongoing since 1956

We b our own problem(s)

not new

Hmm, at least this isn't coming from a Nigerian before they black mail the person like they did to sls.

Corruption in nnpc, reason why they can never allow an independent audit.

Op, do justice to that headline immediately! colluding not colliding u hear?

Since when did oil theft become news

1

How is this news?

NNPC and corruption.

smh.

bloody thieves, na God go punish all of them from GEJ, to the minister of petroleum, to the GMD of NNPC

[size=14pt]Ordinary stealing....[/size]

Please, the word to use is Collude and not collide.

we ar d ones destroying ourselves

Normal thing nau

Stealing here nd there in dis country called nigeria...ME SEF JUST STEAL ONE PIECE OF MEAT FRM MY MAMA POT...#NOTHINGGOSHELE

Dead by hanging shap shap

Haba Mods!! How do you place this kind of title on the Front Page? You can do much better than this. Please change the title ASAP.

Death by hanging shap shap

am nt surprised itz nt a new tin

And this our Barney Cartoon network president will classify this one as ordinary stealing and defend Deizani with every bit of air in him.

Na today oyinbo dey steal from us? Or why do you think the PIB is dead even before arrival
The people they are stealing from are busy fighting themselves on social media over inconsequential matters......
Next topic abeg!

I heard about this last year. This evil government is mortgaging the future of generations.

AwesomeRomeo:
The report, “Big Spenders: Swiss Trading Companies, African Oil and the Risks of Opacity, published by Bern Declaration, BD, a Switzerland-based non-profit transparency organisation, examined the processes involved in the sales of crude oil to Swiss commodity trading companies by SubSaharan African countries between 2011 and 2013.
The report was co-authored by another Swiss NGO, Swissaid, and an American one, the Natural Resource Governance Institute (NRGI).

Some people be like, "this must be another APC propaganda"

Olorun mo number ile gbogbo yin ooooooo........................

9ja can understand,yet d president want take $1billions loan2 equip our millitary,NNPC and cohort can steal dis amount of crude oil within a month.,

so sad

bitterpenis: blood thieves, na God go punish all of them from GEJ, to the minister of petroleum, to the GMD of NNPC

Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.

^^^^Don't mind that Dude,I wonder if he cannot make his point without insulting anyone



Maybe he want to visit Kirikiri

NNPC stealing Nigeria Oil since 1960

Now that Rilwanu Lukman is enjoying 72 virgins in al-janah.
everything is gonna be alright.