Promoting Good Governance.

Kachikwu Warns Against Fraudulent Oil Deals In Nigeria

Minister of State, Petroleum, Ibe Kachikwu
Minister of State, Petroleum, Ibe Kachikwu

The Minister of State for Petroleum, Ibe Kachikwu, has warned Chinese businessmen that the era of discretionary sale of crude oil by the Nigeria National Petroleum Corporation, NNPC, is over.

Kachikwu was speaking at a reception organized by officials of the Nigerian Embassy in Beijing.

The forum provided an opportunity for officials of the embassy to seek clarification about the sale of crude oil in Nigeria following enquiries from Chinese businessmen who got fraudulent offers from Nigeria.

Kachikwu explained that the use of discretion in the sale of crude oil by previous administrations led to corruption in the Nigeria’s oil sector. He reiterated that only eleven companies have been approved to lift oil from Nigeria following an open bid process and that the next bids will hold in April 2017.

The minister also said that investigation is ongoing with regards to the discovery of Nigeria’s stolen oil in China. He appealed to Chinese businessmen to stop buying stolen oil, saying it encourages militancy and vandalism.

The event was part of activities of the NNPC roadshow in China which was aimed at drawing investments into Nigeria’s oil and gas industry.

The minister says about $80 billion oil deals have been signed with various Chinese oil companies, including Sinopec, China’s leading oil company.

The roadshow is also scheduled to hold in India and other Gulf Countries.