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Buhari Won’t Siphon Oil Revenues Like PDP – APC Says

SAN FRANCISCO, August 29, (THEWILL) – The All Progressives Congress (APC) has rebuked the Peoples Democratic Party (PDP) for accusing President Muhammadu Buhari of tampering with oil revenues, saying unlike the past administrations of the PDP, the current administration would not copy their corrupt template in handling oil sales.

The PDP had recently made allegations on the operations of the Nigerian National Petroleum Corporation (NNPC), calling on the President Buhari-led APC administration to clarify on issues they raised.

One of the issues raised by the PDP was the leaked memo detailing alleged underhand oil contracts to the tune of N9 trillion at the NNPC and the Ministry of Petroleum Resources, which are under the direct supervision of the President.

But spokesman of the APC, Yekini Nabena said “the subject of a leaked memo purportedly written by the Minister of State for Petroleum Resources to the President which came to the fore sometime in October 2017 has since been overtaken by events”.

He said it is a matter of public knowledge that the author of the memo openly proclaimed that the issues raised in the letter were not on fraud but on governance and suggestions on ways to go about it.

According to the APC, “going by the current oil sector reforms, it is clear that the President Muhammadu Buhari administration has not copied the corrupt template past PDP-led administrations used to criminally siphon oil revenues.

“The oil sector reforms have provided government more revenue to address social and infrastructural needs of the country; are curbing the perennial fuel scarcities; increased private sector participation and resulted in remarkable investments in both Refineries and Retails. The country is now poised to achieve self-sufficiency in terms of refining petroleum.

“Secondly, it was clearly stated then by the NNPC in response to the leaked document that apart from the 618km Ajaokuta-Kaduna-Kano (AKK) gas pipeline project and the Nigerian Petroleum Development Corporation (NPDC) production service contracts.

“All the other transactions mentioned in the memo were not procurement contracts. The NPDC production service contracts have undergone due process, while the AKK contract had not reached the stage of contract award.

“It should be noted that for both the Crude Term Contract and the Direct Sale and Direct Purchase (DSDP) agreements, there are no specific values attached to each transaction to warrant the values of $10billion and $5billion respectively placed on them in the leaked document.

“Thus it was inappropriate to attach arbitrary values to the shortlists with the aim of classifying the transactions as contracts. They are merely the short listing of prospective off-takers of Crude Oil and suppliers of petroleum products under agreed terms”.

On the alleged diversion of crude oil worth N1.1tr, using 18 unregistered companies, the APC said it also in the public domain that within the last three years, there have been massive and verifiable reforms in the sales, marketing and general management of the various grades of Nigeria’s equity crude oil.

“The reforms have manifested in the now popular public opening of bids for the sales and purchase of Nigerian crude grades in what is known as annual crude term contract.

“The Crude Oil Marketing Division (COMD) of the NNPC had achieved 98 per cent automation of all transactions involving the supply, marketing and sale of the various grades and blends of Nigeria’s crude oil across the world.

“The automation has also helped in the following: enabled the open bid process of customer selection for lifting and purchase of Nigeria’s crude oil grades, emplacement of efficient crude for product import processes, leading to savings of $1 billion in one year as well as the introduction of improved pricing system, which has evolved into a robust and auditable pricing mechanism.

“Based on what we have today, the NNPC COMD is enabled to achieve an end-to-end monitoring of every barrel of crude oil sold in the country. At a click of a button the NNPC can tell you how much crude oil is sold, at what price, who bought it and where it has gone to etc.

“It is therefore inconceivable that the PDP or anybody could ascribe such patently bogus transaction to NNPC.”

This post first appeared on News In Nigeria, please read the originial post: here

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Buhari Won’t Siphon Oil Revenues Like PDP – APC Says


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