How Mrs Diezani Approved $24bn Crude Swap without Contract

A former Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Austin Oniwon, on Tuesday confirmed that there was no formal contract between the NNPC and trading companies that lifted $24bn worth of crude oil from the country between 2011 and 2014.

Oniwon told the House of Reps Ad Hoc Committee on Crude Oil Swap that a former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, merely granted the “extension” of an earlier contract.

He said the extension was not a formal contract before he (Oniwon) left office in 2012.

“There was an approval for the extension by the minister; I believe the records are with the NNPC,” he added.

The NNPC began taking 445,000 barrels of crude daily in 2010 for refining in a bid to meet the country’s local demand of petroleum products.

But when the country’s refineries failed to run, the NNPC resorted to exchanging the crude (swap) for refined products through an arrangement with appointed crude trading firms.

The original (first) contract was signed between the NNPC and two crude traders, Duke Oil and Tranfigura in 2010 to last for one year. It expired officially in 2011.

However, Alison-Madueke granted an extension of the contract without the NNPC formally signing another contract on the new (second) deal, thereby creating room for massive corruption.