From The Guardian
Move by the President Muhammadu Buhari administration to terminate the controversial offshore dispensation and oil swap agreements may save the country an average of 230,000 barrels a day. At a market price of an average of $60 per barrel, the country would be saving about $13.8 million of crude oil daily.
Nigerian National Petroleum Corporation (NNPC) data show that the corporation allocated just over 79 million barrels (or roughly 218,000 barrels a day) to swaps in 2011 alone. This accounted for nearly half of the Domestic Crude Allocation (DCA) and around a tenth of the country’s average daily production.
The 2011 data also indicated that the volume of oil involved in swaps was worth approximately $9 billion.
New York-based Natural Resource Governance Institute estimated that between 2010 and 2014, Nigeria channelled over 352 million barrels of oil worth a total of $35 billion into the swaps.
Also, the Nigeria Extractive Industries Transparency Initiative (NEITI) disclosed recently in an audit report that more than $500 million was lost by the Federal Government through fraudulent activities in the management of crude oil swaps over the years.
The audit report further showed that crude oil worth $6.4 billion was swapped in 2012, while the value of refined products was $6.3 billion, bringing total revenue loss to the Federation Account from 2009 to $500 million.
According to the audit report, Nigeria lost over 23 million barrels of crude valued at over $2.6 billion in 2012 alone.
Read more at The Guardian