$2.4bn Revenue Loss: Reps investigate illegal sale of 48m barrels of crude oil

Reps consider motion moved by Isiaka Ibrahim, sets up Ad-hoc Committee to investigate whistleblower`s allegations of the illegal sale of 48 million barrels of Nigeria’s Bonny Light crude in China in 2015 and the insurance status of the cargo within four weeks 

 

 

 

The House of Representatives has resolved to probe the alleged loss of over $2.4 billion in revenue from illegal sales of 48 million barrels of crude oil exported in 2015 and the external sale of commodity exports from 2014 to date.

It also resolved to examine all crude oil exports and sales by Nigeria from 2014 till date with regards to quantity, insurance, revenue generated, remittances into the federation accounts or other accounts, as well as utilisation of the revenue for the period under review. 

The Ad-hoc Committee is expected to investigate the whistleblower`s allegations of the illegal sale of 48 million barrels of Nigeria’s Bonny Light crude in China in 2015 and the insurance status of the cargo. Proceeds recovered through the Whistleblower’s Policy and the level of compliance with the policy is also to be investigated and reported back to the House within four weeks for further legislative action.

These resolutions were sequel to the adoption of a motion moved by Rep. Isiaka Ibrahim (APC, Ogun) at plenary on Tuesday.

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Moving the motion, Ibrahim said in July 2015; a whistleblower had brought to the attention of a Committee purportedly set up by the President for the recovery of missing crude oil exports, the existence of 48 million barrels of Nigeria’s Bonny Light crude oil in storage at several ports in China, under the authorisation of the Nigerian National Petroleum Corporation (NNPC) to sell the cargo.

“The whistleblower claimed that the Committee, which comprised very high-ranking officials of the administration and NNPC (some of whom he held meetings with) carried out an investigation and confirmed the existence of this cargo, but he discovered in October 2015 that the sale of this cargo had been initiated through unofficial channels and the eventual refusal of the committee to honour their agreement to pay 5% value of the cargo in line with the terms of the whistleblower policy,” he said.

Rep Ibrahim expressed worry about the allegations that the entire cargo of 48 million barrels of Bonny Light Crude was sold without the proceeds being remitted to the coffers of the country, which translated to a loss of over $2.4 billion, considering the 2015 Global Average crude oil price of $52 per barrel.

He added that: “More than two years after these allegations came to the fore and the uncertainty surrounding the required insurance of these crude exports, it becomes imperative that the House ascertain the actual details of all previous crude exports from Nigeria from 2014 till date with regards to quantity, sale, insurance, revenue generated, payment into the Federation Account and how these proceeds were utilised.”