At an international partners event, Mr. Dan Kunle, a respected oil industry expert and former Senior Technical Adviser to a past Minister of Petroleum Resources, raised critical questions regarding Nigeria’s crude oil refining practices. Addressing the audience, Kunle pointed to a significant gap in transparency concerning the handling of 450,000 barrels of crude oil designated for domestic refining.
According to Kunle, for decades, the Nigerian National Petroleum Corporation (NNPC) has been exporting these barrels because Nigeria’s local refineries have remained comatose. In what are termed “crude swap deals,” the crude is shipped overseas, refined into petrol, and resold to Nigeria. However, Kunle pointed out an alarming lack of accountability when it comes to the derivatives produced during the refining process, such as diesel and kerosene.
“The NNPC consistently provides Nigerians with reports on the petrol derived from the crude swap deals,” Kunle remarked, “but what about the other valuable products? Where are the revenues from diesel, kerosene, and other by-products? If they are being sold, who are the buyers, and how much has been realized over these decades?”
Kunle’s concerns strike at the heart of a long-standing issue in Nigeria’s oil sector. For years, the NNPC has not provided detailed information about the fate of these by-products, raising questions about potential lost revenues and mismanagement. “It is high time Nigerians received an account of these derivatives,” he added, stressing that without transparency, it’s impossible to know the true financial implications of these crude swap deals.
Experts at the event echoed Kunle’s concerns, emphasizing that with crude oil being a vital national resource, it is critical that all aspects of its production and distribution—especially the often-overlooked by-products—are managed with transparency and accountability. Kunle’s questions have sparked renewed calls for the NNPC to open its books on crude swaps and ensure that every drop of Nigeria’s oil wealth is accounted for.
Excerpts by Benjamin Ameh of The Ameh News
