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NNPC: Reps probe 5.2 million barrels Direct Sale Direct Purchase crude oil allocation

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The House of Representatives, on Wednesday, unveiled plans to investigate the activities of Nigerian National Petroleum Corporation on the allocation of crude under the Direct Sale Direct Purchase (DSDP) scheme.

The resolution was passed sequel to the adoption of a motion sponsored by Hon Abubakar Makki Yalleman, who underscored the need for the Corporation to account for the total of 5.2 million barrels allocated for domestic supply in 2018 to date.

In his lead debate, Hon Yalleman expressed concern over the media report on “the unfortunate details of how Nigeria’s crude oil is being stolen or diverted daily.

“The House also notes that 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.

“The House further notes 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.

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“The House is concerned and 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 an unutilised stock of crude oil?

“The House is acutely worried that at the spate of missing critical national revenue and is worried that unless these leakages are plugged, they will deepen the national deficit even further thus depriving the country of the much-needed development.

To this end, the House resolved to set-up an ad-hoc committee to investigate the allocation of crude oil under the DSDP scheme from 2018 till date, the crude oil allocation per refineries and the rationale for such allocation and what happens to the un-utilised stock of crude oil in the case of a refinery with inadequate production capacity.

NIGERIAN TRIBUNE

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