6 Nigerian firms allowed by NNPC to lift crude oil from 2017-2018 indicted for subsidy fraud (SEE LIST)
The Nigerian National Petroleum Corporation (NNPC), recently released a list of firms that would be allowed to lift crude oil for Nigeria from 2017 to 2018.
On the list are 39 companies among which are 18 Nigerian companies, 11 International Traders, five foreign refineries, three National Oil Companies (NOCs) and two NNPC trading firms.
Quite interestingly, at least six of these companies were indicted or are still facing charges for fuel subsidy fraud, Premium Times reports.
Below are the firms that have been licenced to lift crude oil and have been indicted for fuel subsidy fraud.
1. Masters Energy
On October 19, 2011, a vessel, MT Zhen Star, purportedly arrived in Nigerian waters with 58,000 metric tonnes of petrol owned by two companies – Masters Energy Oil and Gas Limited and Caades Oil and Gas Limited. Masters Energy claimed it discharged 28,000 metric tonnes of petrol from the vessel in the presence of PPPRA officials, DPR officers, naval officers, customs, and so on and collected N2.9 billion as subsidy claims from the Nigerian government.
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Findings by a technical committee set up by the Nigerian government in 2012 to investigate subsidy payments showed that MT Zhen Star does not exist and no fuel was imported. Despite the indictment, Masters Energy was among some other indicted firms that were never prosecuted.
2. Oando
Police Special Fraud Unit charged Oando Plc alongside three other companies and two managing directors for allegedly obtaining N2.9 billion from the federal government under false pretence of importing petroleum products into the country in 2013.
3. Eterna Oil and Gas Plc
The company was first arraigned by the Economic and Financial Crimes Commission (EFFC) in 2012. In 2014, the firm, its director, Mahmud Tukur who is the son of former chairman of the Peoples Democratic Party and other suspects were re-arraigned over a N3.1 billion fuel subsidy scam. They were charged on a 38-amended count charge bordering on conspiracy, obtaining money under false pretence and forgery.
READ ALSO: 6 oil companies in trouble for multi-billion subsidy fraud
4. AMG Petroenergy
In 2012, AMG was named among 68 oil marketers that collected subsidy funds from the federal government illegally. A House of Representatives committee led by Farouk Lawan mandated it to refund the Nigerian government the sum of N7.2 billion.
5. Prudent Energy
Prudent Energy was also named among 68 oil marketers that collected subsidy funds from the federal government illegally. It was also listed among marketers that were not registered with the PPPRA before they got their first allocation for product supplies. The company was said to have received its first allocation on August 12, 2011, ten days before it registered with the PPPRA. The firm was mandated to refund N1.3 billion to the Nigerian government.
6. Setana Energy
The House committee also listed Setana Energy among the 68 oil marketers and the firma was mandated to refund the sum of N2.7 billion to the Nigerian government.
AMG Petroenergy, Eterna Oil, and Prudent Energy and Resources Ltd were also listed as tax defaulters under the PSF scheme.
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In 2013, when the administration of former president Goodluck Jonathan included the names of those indicted in the fuel subsidy investigations as fuel importers, there was public outcry and the government was criticized.
When President Muhammadu Buhari took over in 2015, he vowed to fight corruption, especially in the petroleum industry.
Some activists are of the opinion that the inclusion of these companies in the list of those to lift Nigeria’s crude oil this year, is an indication that it is still business as usual and not much has changed.
However, the spokesperson of the NNPC, Ndu Ughamadu, said the government does not have any reason to blacklist any oil marketer because the charges against them are still before the courts.