Duke Oil And NNPC Oil Lifting Corruption

Alleged corruption in NNPC under Buhari's watch.
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In his motion, Anyanwu also emphasised the need for the Senate to investigate Baru’s involvement in the alleged corrupt activities of Duke Oil, a component of the NNPC Trading Limited, noting that the company was incorporated in 1989 in Panama and therefore does not pay tax in Nigeria.

He said the company enjoys the massive support of NNPC in crude oil trading in the international market in spite of grappling with the basics of what it was registered to do.

Anyanwu further drew the attention of the Senate to the fact that NNPC Trading Limited is a joint venture subsidiary, which has Duke Oil, Hyson/Carlson (JV), NAP Oil (JV), and West Africa-Gas LTD (JV) as shareholders.

“The Senate is aware that Duke Oil, which was incorporated in Panama in 1989 and does not pay tax in Nigeria, is still grappling with the basics of what it is registered to do in spite of the support from the NNPC,” he said.
“We are aware of the decision by the current GMD to allocate almost all crude oil lifting to Duke Oil; this is in addition to its automatic inclusion in the lifting of crude oil, gas, etc, which will make Duke Oil a money-spinning outfit that is accountable only to NNPC,” the lawmaker added.

Anyanwu, speaking further, said Duke Oil is the sole importer of diesel for the Pipelines and Petroleum Marketing Company (PPMC) and NNPC Retail – both wholly owned NNPC subsidiaries – but the company (Duke Oil) executes the contracts through third parties since it cannot import the product by itself.
This, the lawmaker added, had impeded the growth of indigenous companies who are trying to make inroads into the sector.
“The Senate is also aware of the general lack of transparency and level playing field in favour of Duke Oil to lift products without payment, as against its competitors in the sector.

“We are further aware that these have combined to make Duke Oil the highest money earner and at the same time the highest money ‘waster’ because of the massive corruption in the way and manner they transact business.
“The Senate is concerned that this relationship has helped to greatly stifle the growth of indigenous companies operating in the sector. Duke Oil lacks the requisite credentials to trade internationally; it therefore makes Duke Oil a giant commissioned agent only.

“We are also concerned that the net effect of the above arrangement is that NNPC and by extension Nigeria earns less than it would have if the process was open and transparent, where products are sold directly to indigenous oil traders.

“The Senate is further concerned that money so far earned by NNPC Trading Limited through its subsidiaries such as Duke Oil is not made public and is only known by NNPC officials,” Anyanwu said.
Contributing to the motion, Senator Yusuf Abubakar Yusuf noted that NNPC has always acted like it is a law onto itself and was not accountable to any authority.

“NNPC for the past 10 to 15 years has lived above everybody in t73rd5his country. T-
Part of dust raisedhey think they are a government to themselves and we have to take the bull by the horn. Since we want to fight corruption, we must fight corruption in its totality. And I suggest we include comprehensive investigation of NNPC,” he said.
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