Business Hilights
Tracking Nigeria's Headline Business News Online

How reforms aided NNPC to recover $202m from crude swap under-deliveries

The positive effects of ongoing reforms at the Nigerian National Petroleum Corporation (NNPC) have created a window for the recovery of $202 million outstanding obligations from AITEO Company.

General Manager, Group Public Affairs Division of the NNPC, Ndu Nghamadu, confirmed the payment in Abuja and noted that the revelation of the payment is in line with the on-going reforms in the industry as Dr. Maikanti Baru is committed to ensuring transparency and adequate public information on the on-going recovery effort.

The fund was recovered following extensive reconciliation between both parties across their business transactions and subsequent agreement by the parties therefrom leading to the payment of full outstanding indebtedness to the downstream entities amounting to $202,344,838.62.

Details from NNPC showed that the amount includes AITEO’s share of the $184million total indebtedness by three companies on crude swap obligations plus AITEO’s other downstream liabilities.

Aside from AITEO, two other companies are involved in the crude swap under-deliveries. They are: Televaras Group of Companies and Ontario Oil Gas Ltd.

NNPC further emphasized the determination of the NNPC management to achieve full recovery of the outstanding money involved in the crude-swap-product under-deliveries as well as the full value of stock of its missing petrol in Capital Oil depot, which currently stands at 82 million litres, amounting to over N11 billion.

Oil swap deals in the former administration had been fraught with controversies and fraud which forced the present administration to cancel it but restarted after undergoing series of reforms.