Reps panel to probe ‘illegal $2.4bn sale’ of 48m barrels of oil

The house of representatives has resolved to set up an ad hoc committee to investigate a whistleblower’s claims that 48 million barrels of Bonny Light crude were illegally sold in China in 2015, as well as the insurance status of the cargo.

The resolution, on Tuesday, followed the adoption of a motion moved by Ibrahim Isiaka, a member of the house.

The alleged sale reportedly led to a loss of $2.4 billion in revenue.

In the motion, Isiaka said: “The house is aware of allegations by a whistleblower in July 2020 that he had in July 2015 and in response to the current administration’s whistleblower policy brought to the attention of a committee purportedly set up by the President for the recovery of missing crude oil exports, the existence of 48 million barrels of Nigeria’s Bonny Light crude oil in storage at several ports in China ostensibly under the authorisation of the Nigerian National Petroleum Corporation (NNPC) and the intention of parties in China and the NNPC to sell this cargo.

“The house is also aware that the whistleblower claimed that the committee, which comprised very high-ranking officials of the administration and NNPC, some of whom he held meetings with, carried out an investigation and confirmed the existence of this cargo, but he discovered in October 2015 that the sale of this cargo had been initiated through unofficial channels…and the eventual refusal of the committee to honour their agreement to pay 5 percent value of the cargo in line with the terms of the whistleblower policy.

“The house is worried by the allegations that the entire cargo of 48 million barrels of Bonny Light crude was sold without the proceeds being remitted to the coffers of the country, which translated to a loss, to the Nigerian state, of over $2.4 billion considering the 2015 global average crude oil price of $52 per barrel.

“The house is concerned that more than two years after these allegations came to the fore and the uncertainty surrounding the required insurance of these crude exports, it becomes imperative that the house ascertains the actual details of all previous crude exports from Nigeria from 2014 till date, with regards to quantity, sale, insurance, revenue generated, payment into the federation account and how these proceeds were utilised.”

Therefore, the house resolved to investigate all proceeds recovered through the whistleblowers policy and the level of compliance.

The lower chamber said it would also investigate all crude oil exports and sales by Nigeria from 2014 till date with regards to quantity, insurance, revenue generated, remittances into the federation accounts or other accounts as well as utilisation of the revenue for the period under review.

It then asked the committee to report back within four weeks for further legislative action.

Meanwhile, the Bonny Light is a light-sweet crude oil grade produced in Nigeria.