Nigeria has accumulated up to $3 billion in debts to trading houses such as Vitol and oil majors such as BP for fuel supplies and is trailing four to six
The group chief executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, said earlier this month it was ending the swaps – known as Direct Purchase Direct Sale – after years of criticism by civil society groups including the Nigerian Extractive Transparency Initiative for a lack of transparency and corruption.
The NPPCL, which claims the government owes it $6 billion for subsidised fuel sales, declined to comment, said Reuters. The NNPC had made a rare cash payment in May to some partners of around $200 million, two trading sources said, but no further payment has taken place since amid the government’s cash struggles.
Paying for fuel deliveries with crude cargoes means there is less crude for Nigeria and NNPCL’s to export, and so less revenue. In recent years, Nigeria’s central bank kept the naira fixed at an artificially high rate that gradually rose from 200 to 450 naira to the dollar that only a few players, including the NNPC, could access. That shut out potential private gasoline importers from the market.
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