Reps Flag Off Probe Into $8b Shortfall In Oil Exchange Revenue

 

The lower chamber on Wednesday, June 24, agreed to constitute an Ad hoc committee that would probe the alleged $8 billion revenue shortfall in oil exchange deal brokered by the Pipeline and Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

 

The inquiry is following a revelation by the Nigerian Extractive Industries Transparency Initiative (NEITI) in its 2009-2012 reports that there was a massive revenue loss worth $8 billion, due to discrepancies between the value of crude oil given out and refined products delivered.

 

According to the NEITI report for the year 2011, the transactions anchored by PPMC, led to the shortfall of 500,075,239.3 litres of refined products by five companies.

 

Michael Eyong, who raised the issue in a motion explained that Transfigura had a shortfall of 173,786,600 litres; Vitol, 654,440 litres; Telaveras, 152,308,878 litres; Aiteo Limited, 193,046,590; while Ontario had a 180,278,732 litre shortfall within the period.

 

He said the probe into the crude oil swap contracts was to ascertain “that revenue from the nations extractive industries are transparently managed in accordance with global best practices.”