Fuel Importation: NNPC Battles To Clear Image

MOHAMMED BARKINDO, NNPC BOSS.

Lagos (THEWILL) - The Nigerian National Petroleum Corporation (NNPC) is battling to clear itself of allegations of corruption in the award and execution of contracts for fuel importation.

Oil–rich Nigeria has been importing all its fuel since 2006, when militants in the Niger Delta region of the country blew up the Chanomi creek pipeline, which feeds the country’s refineries in Warri, Delta State and Kaduna. The NNPC, investigations reveal may have been spending close to $5 billion naira yearly on fuel importation alone.

The fuel racketeering was blown open by a national daily, which quoted oil industry sources as disclosing that a cartel within the NNPC was collecting kickbacks of N75m ($500,000) daily from international commodities traders including Trafigura, Glencore and Vitol to sustain fuel import contracts.

THEWILL had also reported that cartels in the present and past administrations and some senior management of the corporation have made a fortune from awarding fuel import contracts.

The corporation was also alleged to have abandoned its Atlas Cove storage jetty in preference for private depots because of financial gains.

Some of the beneficiaries of fuel importation contract were alleged to be ‘paper’ companies, while others are not officially registered with the Nigerian Corporate Affairs Commission.

Although the NNPC has been given a temporary clean bill of health by the House Committee on Downstream Petroleum, currently probing the allegation, sources said authorities of the corporation still have cases to answer, with respect to the billions of naira spent on importation of products. Besides, the same cabal are said to be frustrating efforts by the Nigerian Government to fix the refineries, because they make their living from fuel importation.

Last week, the House Committee on Downstream noted that the Nigerian Government is not competent to manage the refineries and canvassed their sale to private investors. The Nigerian lawmakers noted that billions of naira have been expended on the ongoing Turn Around Maintenance (TAM) of Kaduna Refinery, yet the plants are still not functioning. “For how long can we continue to do TAM? we have spent hundreds of millions of naira in doing TAM and at the end of the day, these refineries will not work”, said the committee Chairman, Clever Ikisikpo.