UPDATE: NNPC Unable to Account for 65,000 Barrels of Crude Daily Reviewed by Momizat on . State run oil company, the Nigerian National Petroleum Corporation, NNPC, yesterday was unable to account for 65,000 barrels of crude oil out of an official all State run oil company, the Nigerian National Petroleum Corporation, NNPC, yesterday was unable to account for 65,000 barrels of crude oil out of an official all Rating:
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UPDATE: NNPC Unable to Account for 65,000 Barrels of Crude Daily

State run oil company, the Nigerian National Petroleum Corporation, NNPC, yesterday was unable to account for 65,000 barrels of crude oil out of an official allocation of 445,000 barrels per day.

At a public hearing held by the Senate Committe investigating the management of fuel subsidy funds by the federal government, NNPC officials revealed that a whopping 20% of the cost of imported fuel represented the component associated with importation, the Vanguard reported.

With Nigeria’s crude selling at $97.89, that translates to a daily $6,362,850 (N939 million daily) that is unaccounted for.

Managing director of the NNPC group, Mr. Austin Oniwon led senior oficials of the corporation before the Senate committee hearing which was chaired by Senator Magnus Abe, head of the Senate Committee on Petroleum, Downstream.

The corporation attempted to give a breakdown of how the 445,000 barrels of oil allocated to it for use by local refineries is utilized. Mr. Oniwon, in so doing, disclosed that the NNPC sells 65,000 barrels of the allocation to a foreign oil company, another 65,000 barrels is sent to an Ivory Coast refinery Societe Ivoirienne De Refinnage.

The mother of all shockers, however, is the fact that the NNPC could not account for 65,000 barrels sold daily, to the tune of N939 million.

It was also revealed that off the oil barrels allocated to the NNPC on a daily basis, only 170,000 barrels were refined locally.

He said, “Warri refines 80,000 barrels; Port Harcourt, 90,000 barrels, while Kaduna refinery is shut down due to the problems with the pipelines.”

The Vanguard further reported that the NNPC swapped 60,000 barrels daily for refined products with United Kingdom based company Trafigura, while another 90,000 barrels per day was swapped for product with Duke oil, a subsidiary of the NNPC.

On the retail price of crude, he told the committee that the corporation before 2003 was buying crude oil locally at a reduced price, paying between $9.50 and $22 per barrel between 1999 and 2003, but a change of policy has led the NNPC to buy crude at the international oil market price.

Mr. Oniwon also revealed to the committee that subsidy has been abused at all levels saying, “Whether at the crude level or at the product level, subsidy was subject to abuse, phasing it out completely was the way forward.”

Senate members expressed concerns that the products covered by subsidies were left in the hands of the beneficiaries. They said as much to Mr. Reginald Elijah, the Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), however, he said it was not within the purview of the agency to provide security at the tank farms where imported products were stored even after paying subsidies.

According to the Vanguard, Mr. Elijah, while listing the components of the subsidy, noted that there were various charges, as well as the actual price of crude in the international market.

He said the price of crude accounted for 80 percent of what becomes the pump price of PMS, adding that the other 20 percent presented charges from storage, finance, administration, freight and distribution elements.

Contrary to wide spread belief that refining petroleum product in the country will bring about cheaper products, the Executive Secretary of the Petroleum Products Pricing Regulation Agency (PPPRA), Mr. Reginal Elijah has revealed that locally refined petrol in Nigeria will only save N11.87k per liter.

He said the discount will come off the N140.78K landing price of imported products. Mr. Reginald Stanley told Senators today, at the oil subsidy hearing that because the NNPC buys crude oil at the internation flat rate, the difference in cost of subsidy between locally produced and imported products is marginal.

Senator Abe, chairman of the committee concluded that the subsidy on diesel and kerosene amounted to a sham by oil companies.

He said, “I do not understand what talk about deregulation because what we have in this country is for oil companies to come together and connive to import AGO and sell to the public. Clearly what is happening in the market is not deregulation it is price fixing.”

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  • Brooks Bassey

    if it true that these guys are not accountable, it is a pointer to only one thing ” corruption” they should be relieved of their position to avoid influencing others, and is will be a lesson to others.

  • kazeem onitilo(Lagos)

    It is a pity that those that we av at the helms of affairs of dis country are those that only belivs in their pocket nd do not care abt d poor masses of dis country. Am surprise to hear wat d group managing director is sayn abt deregulation. Wat a pity. God will catch up wit everybody one day. Let them continue wit their evil deeds.

  • tayelolu

    Wow! this is the evil these men have done, leave them, they cant go to heaven wt any material things.

  • Igwe Alex

    I just remembered that in those days, government in power never allow most of these revelations to come up because they were involved. Thank God for this government that allows all these to be made public and I implore EFCC to take action immediately.

    We will get there when Nigeria will be one of the corrupt free nations in the world. We are looking forward to that period. God bless us.

  • Rose Adams

    Thank God for freedom of info bill. There is no reason why we should sell our own oil to ourselves. Oil for refining should be supplied free! If private companies are going to be used in the oil sector, pls make them pay 90% tax and forensically audit their accounts. Tell the people how the money made from selling the remaining 1,500, 000 barrels sold daily is allocated to gov spending.

  • http://Www.oskilo34@ovi.com Akom oscar

    This is a time 4 EFCC to prove what they have been assaingning for

  • patience adah

    I really do not know what to say. May God help us

  • http://www.dtafound.org Sola Ayeni

    What I know and believe is that whatever a man sows he reaps. The famous people in Nigeria today their father were not known. If they think they can acquire wealth for their unborn generation so that they won’t suffer, it is a storm in a tea cup. Many of them don’t love this country but I strongly believe that God’ wish for this great country Nigeria will come to pass

  • Muhsinat biola

    Its a pity where this country is going 2.​I pray @ †̥ђε̲̣̣̣̥ end of this probe †̥ђε̲̣̣̣̥ guilty hand will be cut off. EFCC its tym 4 Ɣ☺ΰ 2 rebuild Ɣ☺ΰ image α̲̅πϑ prove yourself 2 Nigerians.

  • okoromadu doubra ernest

    I think people should be more objective than criticism.we need to move to move forward not wandering in the past,I think we need a court the efcc,strong political will to curb corruption,it’s high time for true federalism let state go struggle on their own until they get it right.even a child in nigeria knows the solution,it is time for action either by strong political will or by revolution by states.I.e taking out the bad eggs in states. I think that’s what niger-delta militants and boko haram should be doing not killing innocent lives nor in the case of the niger-delta militants becoming political thugs, illegal bunkery,sea pirate and other sort of criminal activities that hinders development!I so move!

  • jimmy idris

    All there probe to me are waste of time,as you know all probe in this country are just waste of time and also is an avenue for d probe committee to have there share of the loot.You will see nothin will come out of the probe.I will still continue saying it,what we need is revolution.

  • Jude Jaka

    I think it is the duty of this committee to tell nigerians what actually happens to the 65,000 barrels unaccounted for by NNPC. We are waiting for the outcome of this probe.

  • Elechi Okechukwu James

    God safe our country “nigeria”frm d hands of those corrupt minded people.

  • Da-Silva Glory

    How long shall we continue to hear senate committee on investigation? We haven’t started hearing punishments, penalties etc!

  • Felix Akpos

    Both de senator & de NNPC should stop decieving us, they should remeber dat all of them have price to pay one day. which is six feet.

  • Salami k.ayinde

    We know where the shoe is pinching us,i believe the only solution to our problem is quansi federalism whether we like it or not…

  • okike obudidi morrison

    the madness at which public office holders are looting the national wealth for themselves, reminds me that we have madmen all the way to the helms of affair .Hence calamity awaits us all.

  • okike obudidi morrison

    How abt building a proud Nigeria? for nigerians by nigerians.

  • http://www.excite.com Truthfully

    They are toiling with our heads cos they know we can do nothing.

  • lucien

    I wish sometimes people would use their heads. When SEC knew that Oteh would require accomodation why did they not make arrangements for her? Hembe admitted to obtaining under false pretences oteh has never done so. Oteh has qualifications to head SEC I doubt hembe has any qualifications in finance or capital markets. To even be eligible as a counsel to advise on capital markets u have to be registered. Is hembe registered Oteh should not resign she should stay and clean up the market she was not on the scene when the market was going to the dogs.

  • afuye joseph

    if producing oil locally will only save 11.87k per litre and nigeria consume more than 20m barrels per day. then we will only save more dan 220m naira per day n create many jobs.

  • lanre sunday

    This is absolutely unfair. The truth had bin reveal but wat action is being taken???? If this act of theft is being carried out by a civilian or a junior officer, am sure the entire generation of the fellow will pay for it. If truly ‘no one is above the LAW as being preached’ then let d grp MD NNPC nd his crew face the LAW. Let dem be hand over to the anti crime agency if they are still functioning. Senators, pls no do partial oooooo else u too will share from this injustice nd it won’t be funny.

  • Sholyment

    The greatest problem Facing nigeria is not corruption as most pple think, it is self interest over national interest, no one incl uding the rulers and the ruled is having indepth inTEREST 4 d country. What All of us want is national cake either good or ill-gotten. God save our nation!

    • THAT DELTA BOY

      its corruption my brother, because if one is upright in his/her obligations issues like this will not be coming up. I pray the Lord helps Us…

  • Kenechukwu

    Our country Nigeria is in a state of ramshackle since those at the helm of affairs hav so much misused our resources.Well I laugh aloud for the senate probing,because its no more news in our country that the law doens’t catch up with any political office holder.It is only normal that when one is pushed to the wall he takes action,but here in Nigeria,when we are pushed to the wall, we tear down the wall and give them more space to continue pushing us.All I have to say is that all man has conscience and God will judge us all according to the way we lived here on earth

  • Juwon Okeowo

    It gets me crazy anytime i read about d level of corruption involving our so call leaders in ds God beloved Country. Dey don’t av conscience, no matter how little.
    Haba!Nigeria dey rich oooo.
    But EFCC caution them, pls.

  • Popeabbey4love

    Who is probing who?birds of the same feathers, NNPC and Senates God is there to judge you all

  • Kulznaturalbody

    Arise O God & let the enemies of Nigeria be scattered.

  • Kenny_kareem

    Nice one Senator Abe We would like to hear more of this. The analysis of the man that said refining the crude locally will only save N11.87 should be checked. I know we can save more in the long-run if the local refinaries are well managed. God bless Nigeria

  • Kenny_kareem

    Good work senator Abe but can you pay more attention to how much we can save if our cude oil is refined locally. I’m sure it will more than N11.87 in the long-run or even now, if the refinaries are placed under a sincer, effective and good management. God bless us all.

  • rasheed taorheed

    Over one year now fuel never come back as jonathan say why why nigeria leader keep lie country people for nothing ???

  • JONATHANISRIGHT

    Unbelievable …..

  • masha

    nigerians have to wake up…let d revolution begin

  • masha

    goodmorning…this 65k barrel its noting.wat of d 1ce dats has been said nd buried nw anoda story.dis is nt d 1st time oil theft its happening inside nnpc.we cant stop it d fed govt cant correct it petroleum minister cant change it..wen d fish head is spoiled den d whole body its nating.we can only change ourselves.naija has turn to a nation were u go nd fetch water nd go away where d water never get dried please nd please naija i ned a revolution.i ned d military.let dem cm 1ce more nd ear our cry.God bless nigeria

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