Oil firm returns N62 billion to NNPC aftermath controversial crude swap deal under Jonathan


The Nigerian National Petroleum Corporation, NNPC, said on Monday it had reached a final settlement with AITEO Group over an outstanding $202.4 million (about N62 billion) debt in respect of under-delivery of petroleum products under the crude swap contract between 2012 and 2014.

Under the crude swap deal by the NNPC during the Goodluck Jonathan administration, the NNPC allocated crude oil to trading companies in exchange for processed petroleum products. That deal was criticised by several analysts who argued that the oil firms were, in collusion with top public officials, cheating the Nigerian government. The government had said it embarked on the deal because, among others, the local refineries were not working optimally and so as to reduce cash payment for imported petrol.

On Monday, the NNPC spokesperson, Ndu Ughamadu said following extensive reconciliation of records between their business transactions and subsequent agreement, AITEO Group paid in full all its outstanding indebtedness to all NNPC downstream entities totalling about $202.35 million.

Mr. Ughamadu said the amount included AITEO’s share of the total $184 million indebtedness by three companies on crude swap obligations, which included Televeras Group of Companies and Ontario Oil Gas Ltd.

Although Televeras Group, at the end of negotiations with the NNPC, agreed pay an initial $17.2 million and $10 million subsequently, there was no earlier information on the offer by AITEO, which also agreed to settle its debt.

The NNPC spokesperson said on Monday that AITEO’s agreement to settle the $202.4 million debt following its engagement with the NNPC on the issue was a demonstration of its cooperation and commitment towards a successful recovery process.

AITEO Energy owned by Benedict Peter and Francis Peter was one of the seven major Nigerian fuel importers identified by the Swiss non-governmental advocacy organization, the Berne Declaration, as the worst culprits in schemes employed by Nigerian and foreign fuel importers to swindle the country.

The report, published in November 2013 titled Swiss Traders’ Opaque Deals in Nigeria, described the schemes employed by Nigerian and foreign fuel importers, such as creating offshore subsidiaries referred to as “letterbox companies”, ship-to-ship transfer to create untraceable paperwork, payment of subsidy money to phantom and non-existing importers, and partnering with politically exposed fraudsters to defraud the country over $6.8 billion from 2009 and 2011.

The Lagos-based AITEO Energy, which is a subsidiary of Geneva-based Aiteo Suisse AG, was asked by the then Technical Committee on Payment of Fuel Subsidy to reimburse the Nigerian government over N578 million in subsidy fund it falsely collected.

The company was one of the three oil marketing firms whose offshore processing agreements were terminated on August 26, 2015 after the contract was found to have been ridden with corruption.

Mr. Ughamadu said as part of the debt recovery process, negotiations were still ongoing with the management of Ontario Oil & Gas Limited to make a formal commitment to settle all its outstanding debts under a crude oil swap contract that existed between 2012 and 2014.

Although Mr. Ughamadu told PREMIUM TIMES, Saturday, that the company, which was convicted recently for subsidy fraud, had offered its tank farm at Oghara in Delta state in lieu of the debt, he said the amount arrived at after the valuation of the facility was said to be far below an acceptable figure.

The NNPC spokesperson said the Group Managing Director of the Corporation, Maikanti Baru, has vowed to ensure that the ongoing recovery process was completed and all debts settled.

“The Management of the Corporation under the leadership of Dr. Maikanti Baru is committed to ensuring transparency and adequate public information on the ongoing recovery effort. The Corporation shall continue to provide further update on the recovery process,” he said.


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  • Shorty & Sharpy

    Those whom Goodluck Ebele Jonathan later destroyed he’d first made mad.

    Jonathan was a marauder on rampage all over the perimeter of the Treasury.

    • kinsly

      Looting herdsman.

  • Ebun Olawale

    @Shorty & Sharpy:

    Goodluck Jonathan made his terrible choices and chose money as his own God. He is today the most
    hated as the most irrelevant thing in Nigeria. His aides are gone; his guards are gone, and he’s left
    in his rustic smells. Here lies the remnants of a morally dissolute man who disgraced Ijaw nation.

    Based on snippets of the extent of rot under Goodluck Jonathan – and rot means stealing – one is almost
    convinced that Goodluck Jonathan is a lawless dis-respecter of the Constitution and the laws of Nigeria.
    I carefully reached this precise conclusion. That was after Jonathan’s Press Secretary when he was
    Governor of Bayelsa state said, as published, that Goodluck Jonathan is mentally unfit to be made
    a Vice-President in the first place. That was the nadir.

  • Sanssouci

    202.4 million US$ between 2012 and 2014 and you use the euphemism “Under delivery”???? are u guys joking? Please call a spade a spade this is theft nothing more nothing less

    • DanJ

      My exact line of thought….
      …. I guess these guys are sacred cows as the recovery negotiation is being carried out by the perhaps implicit NNPC where these companies may have their ‘boys’.
      … I also guess it’s like asking the Air Force to negotiate negotiations with Amosu or Badeh. Maybe, both parties (NNPC and Oil Traders) should be in Court defending themselves like the others and not negotiating in the oil traders playing field over cups of tea, intermittent jokes and perhaps another round of hidden side negotiations.

      • Peter_Edo

        I am sure this is not the end of this…

    • kinsly

      Confirmed Looting.

  • marc umeh

    Oh Jonathan !!!!!

  • Dr Pat Kolawole Awosan

    What a president of Nigeria, for six years who incompetently, governed and imprudently managed Nigeria-fiscal and poorly
    administered our economy to the bankruptcy point before handing over power to the new president Muhammadu Buhari, on inauguration day.Where was the former president Goodluck Ebele Jonathan, and his finance minister, Dr Ngozi Okonjo Iweala, – Havard university graduate, who supervised massive looting stealing and embezzlement of our public funds and assets till May 29,2015 without and consequences or penalty. GEJ. does merit being a competent Local Government Council-chairman. Shame that Nigeria, presidency can be led by just any moron,dick and harry.

    • Fairgame

      Hahahha. A clear sign of mental illness is when you always can’t live or breathe without mentioning the exceptional former minister of finance Ngozi OkonjoIweala. Even in this news that has to do with oil and NNPC it is Ngozi OkonjoIweala you hear, see, Smell. Your case is not treatable by any psychiatrist. All one can say is the woman pass all of your generations put together. Ethnic bigot like you. under Buhari the crude swap is still on going yet it is an administration that left more than two years ago that this truly clueless Buhari administration is still using to justify their gross incompetence. It is the Buhari cabal now in charge of NNPC. Shame on you hypocrite.

      • share Idea

        Pls don’t mind the gullible. How it was GEJ administration that entered into agreement with MRS oil that the scandal is all over the place. The gullible have not asked them why Buhari have refused to fixed the refinery but still engages in Crude Oil swap, and changed its name to Direct-Sale Direct-Buy… Nigeria we hail thee

    • kinsly

      Tell the block head above. Thanks.

  • Fairgame

    No news to sell papers so bring out Jonathan and oil and NNPC and Dieziani and say corruption and attempt to divert attention from the worst hunger crises Nigeria has witnessed in 25 years. Worst economy in more than 25 years. Only gullible people will continue to listen to this directionless government.

    • kinsly

      This news is exactly what caused the hunger you are crying about. Why won’t you be hungry when our national wealth was stolen? Or did you benefit from the sleeze? No more free money, wake up!

      • Patriot01

        Thanks my brother, instead to acknowledge efforts made,some take to the low road of pessimism.

      • Julius

        Thank you !

      • Fairgame

        Abeg go and sit down. Where were you when bihari said Abacha never stole? Nigeria has been in existence long before the pst administration. Till date Abacha who Bihari claims never stole is the only certified thief. Every other media propaganda from Buhari Media Center is just that propaganda.

    • Abdullah Musa

      Your government was so focused that it ceded North east to terrorists, and Pastors became dollar freighters.
      May God never again show us those evil days.

      • Fairgame

        Where does the north that contributes zero to the GDP of Nigeria get the money to Marty many wives and have many children and have emirs that drive Rolls Royces. Buhari media center propagandist like you will Not talk of the murderous herdsmen ravaging the land. Shame on you

        • Abdullah Musa

          It is not our fault that you do not know the meaning of GDP.
          We do not say shame on you.
          We say kindly spare time to read, to broaden your horizon.

          • Haba mallam

            Monkeys like this man think everything good in the North comes from south and everything bad in the south is from the North, that’s why I called them creek monkeys and they will remain like that for ever.

          • Abdullah Musa

            May Allah guide them to the right path.

    • Julius

      Genius, has it ever occur to you that maybe the huge amount of monies looted under the Phd president might have something to do with what we are going tru now ? Try and think, its good for the soul !

      • Fairgame

        Buhari media Center propagandists. Long before last administration came tonpoqert Nigeria had been in existence. In fact Obasanjo met a terrible economy in 1999 but Nigerians weren’t dying of hunger. Despite the state of the economy when Buhari took over he has ended up being the worst president ever.

        • Julius

          Yea sure ! smdh !!!

  • Julius

    All these happened under our PHD president !

    • Fairgame

      Buhari media center paid agent. Your lies and propaganda won’t work on Nigerians again. Worst economy in 25 years. Truly definition of incompetence is Buhari and his noise makers

      • Julius

        So, they didn’t happen under Jonathan ?

  • Musa Lawal

    Shouldn’t there have been interest accrual? If I kept N62 billion in fixed deposit for almost 2 years at 10% interest rate, I should be looking at nothing less than N12 billion in interest only. Nobody should think NNPC has done us a great favor. There should be a penalty for illegally withhold our common wealth. And NNPC is complicit.