Reps to investigate crude allocation under DSDP arrangement | Dailytrust

Reps to investigate crude allocation under DSDP arrangement

House of Reps
House of Reps
The House of Representatives has resolved to set-up an ad-hoc committee to investigate the allocation of crude oil under the Direct Sale Direct Purchase (DSDP) scheme from 2018 till date.
It will also investigate crude oil allocation per refineries and the rationale for the allocation as well as the un-utilized stock of crude oil in the case of a refinery with inadequate production capacity.
The resolution came after the adoption of a motion moved at the plenary on Wednesday by Rep. Makki Yalleman on the need to scrutinise the DSDP scheme.
Presenting the motion, he said the contents of a report published in ThisDay Newspaper of 14th February 2021, brought to national attention the unfortunate details of how Nigeria’s crude oil is allegedly being stolen or diverted daily.
Quoting the report, he said approximately 5.2 million barrels of crude oil supposedly allocated to the comatose NNPC refineries in 2018 under Direct Sales Direct Purchase (DSDP) operations are unaccounted for.
He said: “Essentially, almost half of the 10.9 million barrels of crude oil allocated for domestic supply between June 2018 and July 2019 as reported by the NNPC is either stolen or diverted.”
According to him, the average price for Nigerian crude oil in 2018 was $65 which means that the volume unaccounted for may have denied the country $339 million at a time of acute revenue deficit.