A Review of the Nigerian Energy Industry

‘Crude oil swap, a slap in Nigeria’s face’

28 August 2015, Lagos – The Lagos Chamber of Commerce and Industry has described the crude oil for product exchange agreement, otherwise known as crude swap, as a slap in the face of Nigeria.

Crude oil vessel.
Crude oil vessel

According to the LCCI, the oil swap agreement has exposed the Nigerian government to the world as one that lacks the capability to manage its infrastructure for the benefit of its citizens.

On the swap arrangement, the Chairman, Petroleum Downstream Group of the LCCI, Mr. Emmanuel Osagie, told our correspondent that it was in the overall interest of Nigerians for the Federal Government to cancel the crude for product exchange agreement.

He said, “In fact, the swapping of crude oil was a big slap on the Nigerian refineries. It is a big slap to Nigeria because it shows the world our incapability to manage our infrastructure, which is supposed to deliver a lot of benefits to the Nigerian citizenry. But that was cut off completely. You have exposed yourself that you are technically incompetent to manage your economy and infrastructure in your country.”

He stated that the arrangement was for the benefit of some cabal in the country, as the refined products brought into the country were not equivalent to the barrels of crude oil taken from Nigeria.

Osagie said, “This is because nobody is there to monitor the actual products that come out from the crude oil that we have exported to them in the swap arrangement. So, there were a lot of loopholes in the process and we also have subsidy, which is also a source of revenue for the cabal.

“Ending the swap arrangement is the best thing that will happen to this country if it remains cancelled and if the government does not go back. Instead of going back, we should talk about another contract entirely, but not with the former regime. There should be a new agreement that can be effectively monitored.”



– Punch

In this article

Join the Conversation

Join the Conversation