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FG lost $723m to oil for product swap deals in 2015

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), The Sun reports.

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.

The post FG lost $723m to oil for product Swap Deals in 2015 appeared first on Energy News | Oil and Gas News.

This post first appeared on Energy Mix Report, please read the originial post: here

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FG lost $723m to oil for product swap deals in 2015


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