OrderPaperToday – The House of Representatives has set-up an ad-hoc committee to investigate allocation of crude oil under Direct Sales Direct Purchase (DSDP) scheme from 2018 till date.
The House also mandated the committee to probe the Crude oil allocation per refineries and the rationale for such allocation.
The lawmakers further demanded to know what happened to un-utilized stock of crude oil in the case of a refinery with inadequate production capacity.
The following resolutions were taken sequel to a motion presented by Mr. Abubakar Makki Yallema (APC, Jigawa).
He noted that the contents of a report published in ThisDay Newspaper of 14th February 2021 drew attention of the unfortunate details of how Nigeria’s crude oil is allegedly being stolen or diverted daily.
He also alluded that “approximately 5.2 million barrels of crude oil supposedly allocated to comatose NNPC (Nigeria National Petroleum Cooperation) refineries in 2018 under Direct Sales Direct Purchase (DSDP) operations are unaccounted for. Essentially, almost half of the 10.9 million barrels of crude oil allocated for domestic supply between June 2018 and July 2019 as reported by the NNPC is either stolen or diverted.”
He informed further that “the average price for Nigeria crude oil in 2018 was $65 which means that the unaccounted volume may have denied the country USD339 million at a time of acute revenue deficit.
The Jigawa lawmaker further expressed concern over the spate of missing critical national revenue, adding that unless these leakages were plugged, they will deepen the national deficit even further thus depriving the country of the much-needed development.
The motion was passed when the presiding officer put the question.
However, this is not the first time the House would be probing crude oil allocation in the NPPC as a similar exercise was conducted in the 8th assembly with no concrete results to show.