Reps to investigate allocation of crude oil under direct purchase Scheme

By Gift Chapi Odekina
The House of representatives on Wednesday resolved to investigate a recent report by the media detailing how Nigeria’s crude oil is being stolen or diverted on daily basis.

This followed a motion of urgent national importance moved by Rep Abubakar Yalleman during plenary in Abuja.

Moving the motion, Yalleman noted that there was an urgent need to look into issues raised by the report and bring those found guilty to book.

He said according to the report, approximately 5.2 million barrels of crude oil supposedly allocated to comatose NNPC refineries in 2018 under Direct Sales Direct Purchase (DSDP) operations are unaccounted for. Essentially, almost half of the 10.9 million barrels of crude oil allocated for domestic supply between June 2018 and July 2019 as reported by the NNPC is either stolen or diverted. 

He further noted that the average price for Nigerian crude oil in 2018 was $65 which means that the unaccounted volume may have denied the country USD339 million at a time of acute revenue deficit. 

“We are deeply worried by this report and will like to know: ) The status of the 5.2 million barrels allocated for domestic supply in 2018 till date. ) Crude oil allocation per refineries and the rationale for such allocation. ) In a case of inadequate production capacity, what happens to un utilized stock of crude oil? 

“Unless these leakages are plugged, they will deepen the national deficit even further thus depriving the country of the much-needed development.  

The House to this end set-up an ad-hoc committee to investigate allocation of crude oil under DSDP scheme from 2018 till date, crude oil allocation per refineries and the rationale for such allocation. 

Also the committee is expected to look into what happens to un-utilized stock of crude oil in the case of a refinery with inadequate production capacity.

Related Posts

Leave a Comment

This News Site uses cookies to improve reading experience. We assume this is OK but if not, please do opt-out. Accept Read More