Nigeria reveals plans to trade oil directly without involving middlemen

0
298

oil

Nigeria has expressed its plans to sell and buy oil and gasoline directly without involving middlemen in order to eliminate graft, the new members of the Nigerian National Petroleum Corporation (NNPC) announced.

This policy shift is seen to blend with President Muhammadu Bihari’s plans to stop corruption in Africa’s biggest oil producer.

According to NNPC, Nigeria produces 2 million barrels of crude oil per day.

Nigerians consume about 9 million litres of gas daily, almost all of it imported because local refineries are inefficient. One barel of crude oil produces about 30 gallons of fuel.

NNPC spokesman said that the decision to sell and buy directly was reached after conducting a screening of previously used and prequalified petroleum products importers, which led to revelations that almost all the 34 international and 10local companies were middleman businesses.

This shift is “designed to enshrine transparency and eliminate the activities of middlemen in the crude oil exchange.

One of Buhari’s first action as the President of Nigeria was to fire all the old managers in the industry.

The president has in the past complained that he inherited an emptied treasury.

Nigeria is said to be in crisis, with halved prices for the oil that accounts for 80% of the government’s revenue.

Leave a Reply