Recently, the Senate passed a Motion to set up a Committee to conduct a holistic investigation into the allegations of corruption against NNPC Trading, the GMD of NNPC, and the allegations raised by recent leaked letter to Mr. President by the Minister of State of Petroleum, Dr. Ibe Kachikwu.
The Motion highlighted the fact that Duke Oil, one of the outfits that makes up NNPC Trading was incorporated in 1989 in Panama and does not pay tax in Nigeria.
The Motion also mentioned that there are several allegations of the general lack of transparency in and the non-provision of a level playing field, which oftens favor Duke Oil to lift petroleum products without payments, as opposed to its competitors. These practices have led to Duke Oil becoming the highest money earner, and at the same time, the highest money waster — which helps to greatly stifle the growth of indigenous companies operating in the sector.
Additionally, Duke Oil remains the sole importer of AGO to PPMC and Retail, which it does through third parties. This contributes to slowing down the growth of our indigenous companies that are making giant strides in the sector.
In this regard, the Senate has constituted this ad-hoc Committee to investigate the policies introduced by the current GMD of NNPC to allocate all products to Duke Oil and carry out a holistic investigation into the activities of NNPC Trading Limited.
The Senate President has asked the Committee, which is Chaired by Senator Wammakko to take these allegations and their investigative work very seriously, because it is a matter that goes to the root of stamping out corruption in Nigeria.