NNPC Boss at Work...See the Amount of Crude Oil Money Recovered So Far

NNPC boss, Ibe Kachikwu

 

NNPC has commenced the process of recovering monies due the federal government in oil swap deals and so far a staggering sum has been recouped.

The group managing director of the Nigerian National Petroleum Corporation, NNPC, Ibe Kachkwu, has submitted a report to President Muhammadu Buhari stating that $277 million during a review of crude oil swap deals under the previous government of Goodluck Jonathan. 

 

A sum of $277m has been paid to the NNPC already, a statement from the presidency said, terming the crude swap deals “toxic”.

 

It has however been confirmed that  $420 million is the total amount due to Nigeria.

 

The NNPC said it had also begun the process of recuperating over $7bn in over-deducted tax benefits from oil companies.

 

Garba Shehu, presidential spokesman, also said the state oil company had ‘commenced Performance Measurement & Benchmarking as well as Value for Money Review of NNPC and the JV Companies covering the period 2008 – 2013′.

 

Shehu further cited the report as saying ‘a reputable International Accounting Firm has been engaged by the NNPC to determine the exact amount due government on the Strategic Alliance Contracts entered by NPDC, where up to $2.46 billion of government money is to be recovered.

 

He said: “It (the report) also revealed that consequent upon an extensive investigation of the various toxic crude oil for refined products swap contracts, a total sum of $420 million has so far been reconciled in favour of NNPC and is now due for recovery from the legacy OPA/SWAP contracts. Out of the reconciled amount, the sum of $277 million has been recovered in lieu of products and the recovery effort is still ongoing, the source added.

 

“According to the report , the GMD of NNPC is committed to continued review of all existing contracts and addressing the ones that are not favourable to the Corporation. It was noted that significant cost reductions are also expected to ensure the Corporation remains profitable in the prevailing low crude oil price regime."