The now-famous KPMG
report, uncovered by
Premium Times after over a
year in government’s
closet, provides a most
ample insight into the
endemic corruption in
Nigeria’s petroleum sector,
headlining in forensic
details nauseating and
shocking systemic abuses
in all aspects of our oil and
gas industry.
From unauthorized
violation of OPEC oil quota
for Nigeria, to outright
falsification of the
exchange rates used for
defraying government oil
revenue, to barefaced
exploitation of the subsidy
regime, the report is clear
and unequivocal in its
observations conclusions.
It not only highlighted how
rotten the industry is but it
also clearly indicted
officials and departments
found to be involved in
monumental corruption.
Although names were not
mentioned in the report, a
detailed analysis of the
document by Premium
Times has thrown up at
least 20 government
officials and
businesspersons who have
questions to answer as far
as the audit is concerned.
Interrogating these persons
is a good starting point for
the Economic and Financial
Crimes Commission, which
has been mandated by Mr.
President to probe the
monumental corruption in
the oil industry.
Olusegun Aganga
Mr. Aganga commissioned
the audit of the NNPC and
the PPPRA, which yielded
the KPMG report. He was
finance minister between
April 2010 and June 2011.
Mr. Aganga has explanation
to make regarding why he
failed to act on the report
after it was submitted to
his ministry. He also needs
to explain whether indeed
his ministry failed to
forward the report to the
petroleum minister as
claimed by Mrs Diezani
Alison-Madueke.
Diezani Alison-Madueke
She was in charge of
petroleum ministry at the
time the audit was
completed. Mrs. Madueke
told the House of
Representatives ad hoc
committee on management
of subsidy on Tuesday that
the report had not been
acted upon because a copy
was yet to be officially
served her.
That should be done in the
“next course of days,” she
said, after which all the
mentioned institutions
under the ministry will “sit
and reconcile” the findings.
But most of the corrupt
practices identified by the
audit has festered even
under her leadership of the
ministry. She has a lot of
explanation to make,
especially regarding the
allegation that she ordered
the PPPRA to shake down
marketers shortly before
the 2011 general election,
to purportedly raise funds
for the president’s
campaign.
Femi Otedola
He is owner and chief
executive officer of Zenon
Oil, which was named in
the report amongst the
unlisted off-takers that
illegally got crude oil
allocations in 2008. He has
to explain how his company
bypassed due process and
cornered contracts even
without being on the
approved list of buyers for
that year.
Aminu Dantata & Sayyu
Dantata
They are the principals at
Ovlas Trading and Supply
also named in the report as
one of the unlisted off-
takers in 2008. They need
to explain how they
sneaked into the list and
got allocation without
following laid down
procedure. While billionaire
Aminu Dantata owns the
company, Sayyu Dantata is
the Chief Executive Officer
of the group, named MRS,
which also has Koggi
Shipping, MRS Oil & Gas
and MRS Investments.
Wale Tinubu
The report also listed
Oando as one of the
companies that earned
illicit award of petroleum
product importation
contract even when they
were not part of the
approved prequalification
list used for the fourth
quarter of 2008 importation
tender. The CEO of the
company is Wale Tinubu.
Augustine Olusegun
Oniwon
Mr. Oniwon currently
serves as the group
managing director of the
Nigerian petroleum
corporation(NNPC), the
main focus of the
independent audit. During
the period reviewed by the
audit (2007-2009), he was
the group general
manager, research and
development, a position he
held between 2005 and
2009.
The top-notch position,
though not directly related
to importation of refined
products and subsidy
payments, is a managerial
position with the officials
privileged to key decisions
of the corporation. Still, Mr.
Oniwon’s current position
as the GMD allows him full
access to records and
information of past and
present procedures
including the fuel subsidy
payment, exchange rate,
manipulations in the award
of contracts for importation
and others.
Abubakar Yar’adua
Mr. Yar’adua acted as the
GMD between 2007 and
January 2009, and a
greater part of the tenure
came under the KPMG
investigations. He should
provide responses to the
questions stretching the
many alleged sharp
practices in the industry
during his time in office.
Mohammed Barkindo
As GMD between January
2009 and 2010, he
supervised a corporation
that sustained the same
practices and procedures
according to the report. He
should avail investigators
with answers to multiple
areas of concerns.
Chris Ogiemwoyi
Only a few NNPC portfolios
are explicitly mentioned in
the report as the group
executive director(GED) in
charge of exploration and
production, the GED in
charge of commercial and
investment and the GED in
charge of account and
finance.
The GED for E&P is named
in connection with poor
documentation of
petroleum imports data,
controversial review of
official selling price of
crude, and the dubious
reduction of selling price of
crude for NNPC, different
from that given to other off-
takers. Mr. Ogiemwoyi, a
former minister of state for
power, held that office for
the period under review.
Shehu Ladan
Mr. Ladan, who later
became the GMD of the
corporation, was in charge
of the commercial and
investment directorate
during that time. But for
the fact that he has
transited to the world
beyond, he would have
been at an immensely
vantage position to shed
light on most of the issues
raised by the audit, given
the two key roles he held
while in the NNPC.
Stanley Lawson
Mr. Lawson was the GED
for finance and accounts
from December 2004 to
April 2009, one of the
longest terms ever for that
very crucial portfolio. On
his Linkedin page, Mr.
Lawson is currently profiled
as a Managing partner at
Financial Advisory and
Investment Consultants
Limited.
Besides the GMD, the office
would be most privy to
nearly all operations
reviewed by the audit,
according to the report.
Aminu Babakusa
“Potential conflict of
interest with COMD acting
as agent to government
and being under NNPC who
is also its customer.”
That is the position of the
report on the practice
whereby crude sales to the
NNPC were at lower prices
than the official selling
price, and that given to
other dealers, a practice
that resulted in significant
revenue loss to the
federation.
Between 2007 and 2009,
the period primarily
covered by the KPMG
report, Mr. Babakusa was
the Group General Manager
in charge of Crude Oil
Marketing Division(COMD).
He was also the GED C&I
briefly in 2009, and
currently is the GED in
charge of Business
Development.
Michael Abiodun
Arokodare
Mr. Arokodare is the
current GED for Finance
and Accounts. He took over
from Mr. Lawson in 2009
after serving as a GGM in
the directorate between
2007 and 2009. He should
provide vital information
and answers particularly
with several of the past
messy procedures believed
to be continuing.
Gaius Obaseki
Many of the noted
malpractices held on for
years ahead and after the
report’s review period of
2007 to 2009, it is believed.
Mr. Obaseki is expected to
appear before the ongoing
investigation of the House
of Representatives of the
subsidy management and
should be key to past
investigation based on the
KPMG report. He was the
GMD between 1999 and
2003.
Funso Kupolokun
His was another
controversial era expected
to play a key role in any
major probe. Mr.
Kukpolokun headed the
NNPC since November
2003 to august 2007, partly
covered by the report.
Oluwole Oluleye
Many of the alleged abuses
by the NNPC were carried
out, and still are, with the
understanding of the
Petroleum Products Pricing
Regulatory Agency(PPPRA).
Key amongst others is the
subsidy payment
management. The report
indicts the NNPC for
deducting the money at
source without the required
approval of the PPPRA, and
at many times the
corporation overpaid the
subsidy charges.
At the helm as the PPPRA
Executive Secretary from
2003 to 2009, was Mr.
Oluleye. A government
investigation into the
disbursement of the
Petroleum Support Fund by
the PPPRA led to his
suspension in 2008, and
eventual removal from
office in 2009.
Abiodun Ibikunle
Mr. Ibikunle took over as
the Executive Secretary
between 2009 and 2011.
His tenure was marked by
allegations by unions, oil
dealers and lawmakers
accusing him of lack of
transparency. He assumed
the position after working
at the Department for
Petroleum Resources(DPR).
Reginald Stanley
Mr. Stanley headed the
Pipelines and Product
Marketing Company (PPMC)
, another major subsidiary
named in the report. The
company is mentioned in
connection with
discrepancies noted in the
volume of products
allocated to marketers in
various parts of the
country, and a sub-optimal
use of government-owned
storage facilities which has
led to an outsourcing of the
demand and resultant loss
of revenues to the nation.
Aliyu Sabon Birni
The Department of
Petroleum Resources is
named amongst others
under the manipulated
subsidy payments, and the
unauthorized violation of
OPEC quota for Nigeria and
the Technical Allowable(TA)
quota for monthly
production.
“Non-adherence to TA has
a potential to negatively
impact on the country’s oil
and gas reserves
projections and plans,” the
report said, citing instances
where the TA was
exceeded by Total and
Chevron, NAE and Esso in
2010. Mr. Birni was the DPR
Director in 2008.
Billy Agha
Mr. Agha was in charge of
the Department of
Petroleum Resources in
2009 and has a deep
insight of the rot and
monumental corruption in
the industry during the
period.

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