Ahead of President Buhari’s planned official announcement of fuel subsidy removal, investigations by SIGNAL have revealed that Nigeria has been secretly exchanging its crude oil for refined petroleum products to the detriment of revenue accruing from sale of crude oil.

Top government sources in the petroleum sector who did not want to be named disclosed the details to SIGNAL on Monday. According to the sources, rather than generate revenue through the sale of its crude oil, the Nigerian government is now importing and paying for imported fuel with Nigeria’s crude oil.

While the practice of crude oil swaps for refined petrol is not entirely new, the development, which was reportedly induced by government’s efforts at closing the gaps created by the inability of oil marketers to import fuel, is said to have kept the federation account in an unprecedented deficit.

“We are in a big mess, a really big crisis. Nigeria has no money. The federal government is now officially broke. What is happening now is that our raw crude oil is now being swapped for refined petrol. So we are practically not selling our crude oil right now. We are exchanging our crude oil for refined petrol in a trade by barter arrangement. The implication is that the federation account is in deficit. There’s no money in the federation account because we are not selling our crude”, one of the sources told SIGNAL.

An oil marketer who spoke with our reporter on Monday on condition of anonymity blamed the oil market crisis on shortage of dollars. “It’s not viable for us, business is not working. Most of us have stopped importing fuel because we can’t get dollars to trade, and even if you want to buy dollars at black market rate, it’s not sustainable. Now the government wants to carry the responsibility on their shoulders, but what has been the result? It’s not working. The fuel queues have refused to disappear. We told them to deregulate, but they wouldn’t listen” the source said in frustration.

Nigeria’s current stream of revenue according to government sources now depends majorly on customs and excise as well as VAT. This is even as observers continue to advocate for deregulation of the downstream sector as a practical step towards resolving the demand and supply challenges of refined petrol in the country.

“That is why they will have no option but to deregulate. The problem now is that the Minister of State for Petroleum Ibe Kachikwu is reluctant to announce removal of subsidy, because of the fear that it can backfire with the Nigerian public considering the timing. The removal was supposed to have been announced last Friday but Kachikwu is now pushing it to the Vice President, Yemi Osinbajo who is also reluctant to make the announcement. President Buhari himself is off to London leaving both Kachikwu and Osinabjo to manage any untidy situation that may arise from the announcement of fuel subsidy removal”, a top government source who did not want to be named told SIGNAL.

Read more: http://www.signalng.com/exclusive-nigeria-secretly-exchanging-crude-oil-refined-petrol/

Okay

Nigeria just dey fall like my babe booby while our cow president dey daura dey drink raw milk

Crude swap has been going on since Abacha's government.

Madam watermelon! Abeg come cut watermelon and pineapple give me.. Add small cucumber,belike say na here I go sidan today

I trust Tiwa salvage to divorce buhari and Nigeria since he's broke and can't even afford to buy imported grass for fulani herdsmen.

Buhari and APC should man up and tell the true state of our economy.

Hehehe...amazing stuff!

That is equal balance of trade and a good development by my assessment. The FG should secretly/openly (whichever) print more Naira for disbursement to States.

US print dollars, Britain print pounds and Nigeria should print Naira. The attendant inflation can't kill as it will gradually be absorbed into what is at present.

bender79:
What has your father achieved in life? Apparently the 'cow president'is better than him.

almajiri zombiee

There's absolutely nothing wrong with that. As a matter fact this is exactly what should a have been done all along. when you take cash out of the equation it starves corruption.
This is the same thing Buhari did when he was head of state.
Nigeria exchanged crude oil for medical supplies, etc.
Good job!

bender79:
What has your father achieved in life? Apparently the 'cow president'is better than him.

almajiiri zombiee

This is a hallmark of hopelessness. Our greatest asset being treated like yam.

bigboss80s:
There's absolutely nothing wrong with that. As a matter fact this is exactly what should a have been done all along. when you take cash out of the equation it starves corruption.
This is the same thing Buhari did when he was head of state.
Nigeria exchanged crude oil for medical supplies, etc.
Good job!

And how successful was his tyrannical military rule

LadyExcellency:
That is equal balance of trade and a good development by my assessment. The FG should secretly/openly (whichever) print more Naira for disbursement to States.
US print dollars, Britain print pounds and Nigeria should print Naira. The attendant inflation can't kill as it will gradually be absorbed into what is at present.

Seems you just went to school to study economics or accountancy? Fuel is just a fraction of crude and it is stupidity to swap same with crude. What happens to products like diesel, kerosene, ethylene, etc that comes from same crude?

Crude swap before was done with change on it to save in our accounts as a nation not the trade by barter we are doing now.

FG should dialogue with ND avengers now so they don't cripple the economy while we ensure that our refineries are fully operational for self sustenance. But guess what,the FG isn't even truthful in it's approach.

The same govt that told us about diversifying budgeted billions of naira for crude exploration in chad basin more than what Agriculture got. Isn't it clear that there is an agenda somehow? Someone will say GEJ budgeted money for it but do we really need such as we all know crude is as cheap as sachet water in international market.

The crude oil swap have been going on since the time of last administration, even when Nigeria was proclaimed the largest economy in africa. We should be ashamed that as the largest economy we were importing talk less of now, when crude is less than $43/barrel

Bassee:

And how successful was his tyrannical military rule

I hear much of this tyrant. Please, what has made PMB a tyrant? If man should stand firmly on his principle would classify him as tyrant, I think we would have had that tyrant long before now to avoid this culture of impunity that has perverted our society.

amaechi1:


I hear much of this tyrant. Please, what has made PMB a tyrant? If man should stand firmly on his principle would classify him as tyrant, I think we would have had that tyrant long before now to avoid this [b[culture[/b] of impunity that has perverted our society.

Yes we need this culture of power dropping to 0MW, fuel scarcity persisting for weeks with no sound from the presidency, cost of living of the average Nigerian hitting the roof. The Buhari story will be a lesson to all Nigerians. Next time we'll request that he explains what he means by "change"

Joe4lv:


Seems you just went to school to study economics or accountancy? Fuel is just a fraction of crude and it is stupidity to swap same with crude. What happens to products like diesel, kerosene, ethylene, etc that comes from same crude?

Crude swap before was done with change on it to save in our accounts as a nation not the trade by barter we are doing now.

FG should dialogue with ND avengers now so they don't cripple the economy while we ensure that our refineries are fully operational for self sustenance. But guess what,the FG isn't even truthful in it's approach.

The same govt that told us about diversifying budgeted billions of naira for crude exploration in chad basin more than what Agriculture got. Isn't it clear that there is an agenda somehow? Someone will say GEJ budgeted money for it but do we really need such as we all know crude is as cheap as sachet water in international market.

You mean to tell us that you're privy to the terms of the swap?

I too know dey kill. This is an old practice which is implemented to check balance of trade among countries.

The formula for the swap is fair and not as you assumed.

ononujuchika:
almajiiri zombiee

looser,follow your hero to the creeks and save your breath.

Bassee:

Yes we need this culture of power dropping to 0MW, fuel scarcity persisting for weeks with no sound from the presidency, cost of living of the average Nigerian hitting the roof. The Buhari story will be a lesson to all Nigerians. Next time we'll request that he explains what he means by "change"

When you continue praising and glorifying people blowing up pipelines taking gas to power stations, power will continue to drop, and there's nothing buhari can do about that. Kontinuu!

LadyExcellency:
That is equal balance of trade and a good development by my assessment. The FG should secretly/openly (whichever) print more Naira for disbursement to States.

US print dollars, Britain print pounds and Nigeria should print Naira. The attendant inflation can't kill as it will gradually be absorbed into what is at present.

While I can't fault the crude/petrol swap deal because I am not privy to the terms of agreement, I find the emboldened absurd.

we are battling with inflation and you want to add more problems.

Nigeria has been broke since oil prices crashed, several states being unable to pay salaries, the FG borrowing to pay salaries at some point etc; this broke-ness isn't news... Crude swap even seems like a good option to save scarce forex whilst still meeting fuel needs.

obailala:
When you continue praising and glorifying people blowing up pipelines taking gas to power stations, power will continue to drop, and there's nothing buhari can do about that. Kontinuu!

In countries with servant leaders, every problem is to be solved. But in Nigeria, we have people who justify inaction. Shame! So if the vandals go on till 2019, Buhari will be right to campaign saying, "sorry Nigerians, no power for you because you've refused to fight the vandals". Just how pathetic!

Bassee:

In countries with servant leaders, every problem is to be solved. But in Nigeria, we have people who justify inaction. Shame! So if the vandals go on till 2019, Buhari will be right to campaign saying, "sorry Nigerians, no power for you because you've refused to fight the vandals". Just how pathetic!

I was simple clarifying to you why the power generation dropped drastically when it did. It is left for Buharu to take appropriate steps to checkmate the economic saboteurs going forward.

As long as this oil come from yoruba land and is ok with Avengers then is ok










long live

TonyeBarcanista:

While I can't fault the crude/petrol swap deal because I am not privy to the terms of agreement, I find the emboldened absurd.

we are battling with inflation and you want to add more problems.

The present inflation is unconventional in that it has assumed that Nigeria already devalued the Naira (N320 to a dollar) or applied quantitative easing.

Printing more money is a conventional monetary policy to lower interest rates, increase the money supply and support local investments. The attendant inflation can be controlled by the next phase of CBN monetary policies


*** The recovered money (in Naira) is even enough to share the States for the next two years with/without printing more money.

obailala:
I was simple clarifying to you why the power generation dropped drastically when it did. It is left for Buharu to take appropriate steps to checkmate the economic saboteurs going forward.

You weren't clarifying nothing, you said Buhari can do nothing about it. That line "and there's nothing Buhari can do about that" just shows the kind of people supporting this government. He has their support even if he does nothing, That's good to hear, anyway.

Bassee:

You weren't clarifying nothing, you said Buhari can do nothing about it. That line "and there's nothing Buhari can do about that" just shows the kind of people supporting this government. He has their support even if he does nothing, That's good to hear, anyway.

stop wailing, do something that will move your own economy forward! abi you want us to believe your success depends on buhari actions?

olorunda68:
stop wailing, do something that will move your own economy forward! abi you want us to believe your success depends on buhari actions?

Which success? When his failure is already crippling Nigerians you're talking about me? Forget about me, worry more about the pipelines that'll go up in flames in the coming days because of the President's tomfoolery!