The Nigerian National Petroleum Corporation (NNPC) says it has saved the federation $336.4m (about N66bn) in the first four months it stopped the controversial contract for petroleum product import called crude oil swap.
NNPC had in April replaced the offshore processing arrangement (OPA) and crude oil swap contracts through which it imports petrol to the country – with the Direct Sale Direct Purchase (DSDP) arrangement.
It cancelled the swaps after years of heavy criticism trailed the contracts whose terms not only short-changed the Nigerian treasury but were skewed in favour of private oil traders or middlemen and briefcase companies.
NNPC in its latest in-house publication, Energy in Brief, said the management of the new DSDP framework adopted in April to ensure supply of refined fuel, earned an average $53m monthly savings for the Corporation.
These savings, it said, had resulted to a total of $336,379,854.98 for it in four months – April to July 2016.