Nigeria’s state owned oil company, Nigerian National Petroleum Corporation (NNPC), received N28.85 billion, from Anglo-Swiss multinational commodity trading and mining company, Glencore, being payment for crude oil sold to the company in 2017.
Glencore, is one of the oil traders selected to lift Nigeria’s crude oil under various contracts, such as the crude oil term deal and the direct sale direct purchase scheme among others. The company disclosed that the payment was for a total of 1.9 million barrels of Nigerian crude oil.
Group Managing Director of NNPC, Dr Maikanti Baru translated the deal to an average of $49.62 per barrel of crude oil.
However, Glencore failed to disclose the crude oil grades purchased from NNPC, describing it as commercially sensitive information.
The company made total payments of $1.448 billion for 29.244 million barrels of crude oil purchased from six countries, including Nigeria, Ghana, Cameroun, Chad, Republic of Congo, Norway and Chad.
The report pointed out that NNPC, on behalf of Nigeria, accounted for 6.5 per cent of Glencore’s total’s payment in 2017, while the country ranked fifth on the payment schedule, with Ghana’s National Petroleum Corporation emerging the sixth least paid with $45.176 million.
The N29 billion Glencore paid to NNPC was more than enough to fund some power projects listed in the 2018 budget, such as provide the N9.4 billion to be set aside as counterpart fund for the Mambilla hydro power project; and provide the N9.7 billion counterpart funding earmarked for transmission lines and substations.
In addition, it would fund the N2.2 billion construction of 215MW LPFO/ Gas Power station in Kaduna; N3.4 billion Kashimbilla transmission and the N14.2 billion Fast Power Programme Accelerated Gas and Solar Power Generation.