The Senate has constituted an Adhoc Committee to investigate a recent policy introduced by the current Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) that seeks to allocate all oil trading activities to Duke Oil, a foreign incorporated company. In addition to this mandate, the ad-hoc Committee is also expected to conduct a holistic investigation on NNPC Trading Limited on allegations bordering on corruption. The resolution followed Senate’s adoption of a motion moved by Sen. Muhammad Adamu Aliero (APC: Kebbi) and his co-sponsors {Senators Abdullahi Adamu (APC: Nasarawa) and Andy Uba (APC: Anambra)}.
Leading the debate on the motion titled “Allegations of corruption against NNPC Trading: Time to conduct a holistic investigation”, Sen. Aliero explained that NNPC Trading Limited is a subsidiary of the NNPC and comprises Duke Oil, Hyson/Carlson (JV); NAP Oil (JV) and the West Africa Gas LTD (JV). However, he noted that despite Duke Oil being specially registered to play a dominant role in the trading of petroleum products, fell short when compared to other major players in the sector, owing to large-scale corruption.
Sen. Aliero also queried the appropriateness of the policy of Dr. Maikantu Baru, current GMD of NNPC which gives Duke Oil other special benefits such as an “automatic inclusion” in the lifting of crude oil and gas. He further went to say that Duke oil remains the sole importer of Automotive Gasoline Oil to the Pipeline Product and Marketing Company (PPMC). Furthermore, Sen. Aliero decried the effect of the actions of NNPC Trading Limited and Duke Oil stating that it short changed Nigeria and stifled the growth of indigenous companies operating in the sector. He also expressed concerns on the lack of accountability and transparency between the trading arrangement of NNPC Trading Limited and Duke Oil stating that even the money earned so far by NNPC Trading Limited through its subsidiaries like Duke Oil remained exclusive to NNPC officials and urged that a holistic investigation be conducted in respect of the matter.
In addition to the said investigations, the Senate has also mandated the ad-hoc Committee to investigate recent allegations of insubordination levelled against the GMD, Dr. Maikanti Baru by Dr. Ibe Kachukwu, Minister of State for Petroleum.
