Wednesday, February 17

Former minister of petroleum Diezani Alison-Madueke allegedly approved $24b deal without contract

The former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke has been accused of awarding a Crude Oil swap deal worth  $24b approximately over N7.2tr without any contract.
This was revealed by a former Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mr. Austin Oniwon.

Oniwon was in the hot seat, during a investigation session with the House of Representatives Ad Hoc Committee on Crude Oil Swap, Punch reports that the former GMD said there was no formal contract between NNPC and the companies that lifted the crude from 2011 to 2014.


Oniwon said “There was an approval for the extension by the minister; I believe the records are with the NNPC.” Reports say NNPC entered a deal with crude oil trading companies to swap crude for refined products, when Nigeria’s refineries failed.

It was revealed that the first official one year deal was signed between NNPC and two crude oil trading firms- Duke Oil and Tranfigura, in 2010.

It was also reported that after the expiration of the first contract, the ex minister, Mrs Alison-Madueke merely approved an extension of the contract without any formal agreement.
Oniwon also said;
 “I am not a lawyer, but I didn’t need anybody’s approval to take crude to the refinery for refining if the refineries were running. 
“This crude had been paid for by the NNPC. If I needed to take the crude for exchange, I am not going to write the Federal Government. It is NNPC’s decision on what to do to guarantee regular supply of products in the country." 
“That was the whole essence of the swap arrangement; to ensure that we had adequate products, which we achieved successfully.“If there was supposed to be a higher approval, it was the minister who should seek the approval, not the NNPC."

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