Thursday, 5 November 2015

NIGERIA TO BUY AND SELL OIL DIRECTLY, CUTS MIDDLEMEN.

On Tuesday night, the new managers of the Nigerian National Petroleum Corporation (NNPC) announced that Nigeria will start selling and buying oil and gasoline directly to cut out middlemen and curb graft.

The major policy shift fits President Muhammadu Buhari's plan to halt corruption endemic in Nigeria’s oil industry. A statement from spokesman Ohi Alegbe said the decision was made after a screening of previously used and prequalified petroleum product importers revealed almost all the 34 international and 10 local companies were middleman businesses.

The shift is "a major steer designed to enshrine transparency and eliminate the activities of middlemen in the crude oil exchange," said the statement from the corporation's new management. One of Buhari's first acts as president was to fire all the old managers.

President Buhari was warned earlier this year by U.S. Department of Justice upon assuming office that one minister had pocketed $6 billion from oil sales. Also, the past administration had been accused of corruption, with favored officials being sold entire shipments of crude at favorable rates so they could pocket the profits.
The massive thefts came as oil prices topped $110 a barrel. Now Nigeria is in crisis, with halved prices for the oil that provides 80 percent of government.

Nigeria produces 2 million barrels of crude a day, according to the corporation's website while Nigerians consume about 9 million liters (2.4 million gallons) of gas daily, almost all imported because local refineries are inefficient. 


Credit: hosted.ap.org

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