Many operators in the oil and gas sector yesterday told the House of Representatives Committee investigating money paid on subsidy by the Federal Government that they have not received any subsidy payment from the government since 2015.
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The companies said the transactions between them and the government through the Nigerian National Petroleum Corporation (NNPC) has been on the Direct Sale, Direct Purchase (DSDP), adding that no cash had exchanged hands between them and the NNPC as a result of their involvement in petroleum products import.
The companies made this known at the resumed hearing of the House Ad hoc Committee. The Chairman of the Committee, Ibrahim Aliyu, said the Corporate Affairs Commission (CAC) had no records of 23 of the over 50 companies involved in the DSDP project with the NNPC.
A letter from the office of the Registrar-General of CAC with Ref. RGO/SU/VOL.5/2022/0248, dated July 13, 2022 and signed by one Maimunat Hamu read: “Please be informed that we could not readily find information on the exact name of the following companies as provided in our record.
The companies include Emadeb Consortium, Brittania-U Nigeria Limited, Totsa Total Oil Trading SA, Petroleum Trading Nigeria Limited, Mocoh S.A, Soccer Worldwide, Calson Bermuda Limited, Hyson, Litasco S.A, Mercuria Energy, Cepsa Lubricant, Trafigura Pte, Vitol S.A, Ocanbed Trading Limited, Bonno Energy, West Africa Gas Limited, Petrogas, Matrix, Masters Energy, AMG, Barbados, Hindustan and Patermina.
“However, you may wish to provide the registration numbers or any other available documents at your disposal to enable us to investigate further. Kindly accept assurances of the Registrar-General’s highest regards.”
The companies that appeared before the Committee yesterday, which include Sahara Energy Trading Company, Oando, Mocoh S.A, A.A. Rano and Hyde Energy Limited, were unanimous in their statement that they did not receive subsidy payment from the government.
They claimed that the agreement between them and the NNPC has been on DSDP and that they are only required to supply products as specified by the NNPC in exchange for the crude oil allocated to them.
They said further that after supply, they are also required to carry out reconciliation with the NNPC to determine whether there is a short fall which is carried over to the next supply claiming that it has always been “value for value”.
An Executive Director with AA Rano, Sa’ad Saidu Mahuta, who stressed the position of other oil companies said: “Our contract with the NNPC is purely on DSDP. We are allocated crude oil and expected to bring products as specified by the NNPC. We have not been part of subsidy accrual and we have never been paid subsidy
“No payment is made to us. It is purely a swap deal. We take crude and bring in petroleum products. We have not received any cash payment. Even after reconciliation, any outstanding is carried over”.
Representative of Sahara Trading Company, Stephanie Oseni said the company’s partnership with the NNPC is to take crude and deliver petroleum products equivalent of the crude to the NNPC.
She said: “We import products as specified in the DSDP and are not involved in subsidy payment. We have never received any subsidy payment as part of our contract. We do reconciliation quarterly with the NNPC. Even when there is a shortfall, it is carried over to the next supply.”
Also, the Head of Legal and Compliance with Hyde Energy Limited, Abdulwahab Oseni, said though his company was part of the DSDP programme, they have never received any payment for subsidy from the NNPC or any government agency.
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