Thursday , April 26 2018
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FG lost $723m to oil-for-product swap deals in 2015

The Nigerian Extractive Industries Transparency Initiative (NEITI) has revealed that Nigeria lost a whopping $723 million of refined petroleum products in 2015 to faulty Offshore Processing Arrangements (OPA).

Its Executive Secretary, Waziri Adio, in a recently released audit report said; “the loss means that the value of refined products the country received through OPA was less than the value of the crude given by $723 million, even after allowances had been made for costs and margins.”

Adio further revealed that the President Muhammadu Buhari administration cancelled the OPA in November 2015 for being uneconomical. “However, there was an outstanding liability of $498 million by companies contracted under OPA from under-delivery of imported products,” he added.

The NEITI boss also revealed that $90 million was lost through a practice where NNPC used a revised/lower pricing option at the point of payment instead of the higher price at the point of purchase. The report states that NNPC has stopped the practice of double valuation with the coming of the present administration.

“NEITI recommends close monitoring of the Direct Sale Direct Purchase (DSDP) arrangement that replaced the OPA to ensure the country is not being shortchanged. It also calls for government to recover the $498 million OPA liabilities from the affected companies,” Adio said

 

About Lanre Oyetade

A multiple award winner in Economics and business journalism, Lanre Oyetade has served close to two decades in the media industry, spanning different notable stables, where he is privileged to have risen to the position of a title editor. A masters degree holder in Economics from the University of Lagos and doctoral student at the Babcock University, he is a winner of the prestigious NMMA Capital Market Award for two consecutive years (2004 & 2005), and was also a nominee for the body’s banking and finance and money market awards for two years. In 2013, he also won the Most Outstanding Business-Reporting Title Editor award of the National Institute of Marketing of Nigeria (NIMN). A minister in the LORDS’s vineyard, he has been an inspirational speaker and resource person at many corporate and religious fora since early 2004, and has so far authored three books on the capital market; on personal effectiveness, and on personal finance, in 2008 and 2014, respectively.