NNPC review of oil swap deals yields N55bn

Following a review of toxic crude oil for refined products swap contracts, the NNPC has been able to recover about N55 billion ($227 million).
Senior Special Assistant to the President on Media and Publicity Malam Garba Shehu who made this known on Sunday said the recovery was the result of an “extensive investigation into the various toxic crude oil for refined products swap contracts.”
A report which was recently submitted to President Muhammadu Buhari by NNPC Group Managing Director, Emmanuel Kachikwu, revealed that out of the reconciled amount, $277 million has been recovered in lieu of products.
The report showed that $420 million (N83 billion) has so far been reconciled in favour of the Nigerian National Petroleum Corporation (NNPC).
Garba noted, that the NNPC had also begun the process of recovering over $7 billion (N1.38 trillion) in over-deducted tax benefits from Joint Venture Partners on major capital projects.
He added that the GMD had commenced performance measurement and benchmarking as well as value-for-money review of corporation and the JV Companies covering the period 2008 to 2013.

Read also: NNPC terminates GEJ’s oil swap contracts

The presidential aide further stated that the report indicated that this process might lead to further cost recovery.
He said the report also indicated the NNPC had engaged a reputable international accounting firm to ascertain the exact amount due government on the Strategic Alliance Contracts “entered by the NPDC where up to $2.46 billion (484.6 billion) of government money is to be recovered”.
Shehu stated: “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.

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