Reps Probe Crude Oil Sales Over $2.4bn Revenue Loss

Reps Probe Crude Oil Sales Over $2.4bn Revenue Loss

The House of Representatives announced plans on Tuesday to investigate the alleged loss of over $2.4 billion in revenue resulting from the illegal sale of 48 million barrels of crude oil export from 2014 to the present.

The lawmakers also agreed to form an ad hoc committee to investigate the whistleblower’s allegations of the illegal sale of 48 million barrels of Nigerian Bonny Light crude in China in 2015, as well as the cargo’s insurance status.

The resolution was approved following the passage of a motion sponsored by Hon. Isiaka Ibrahim.

In his lead debate, Ibrahim, who requested House intervention, emphasized the importance of recovering the fund in accordance with existing laws.

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“The house is aware of allegations by a whistleblower in July 2020 that he had in July 2015 and in response to the current administration`s whistleblower policy 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 ostensibly under the authorization of the Nigerian National Petroleum Corporation (NNPC) and the intention of parties in China and the NNPC to sell this cargo.

“The house is also aware that 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.

“The house is worried by 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 to the Nigerian state of over $2.4 billion considering the 2015 global average crude oil price of $52 per barrel.

“The house is concerned 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 needs to 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 utilized,” he noted.