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Nigerians in Diaspora Commend Kachikwu On Plans To End Oil Swap Deal

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Nigerians in Diaspora Commend Kachikwu On Plans To End Oil Swap Deal

NEWISSUES, Abuja

 

agbese

Phillip Agbese, Co-ordinator, The Nigerians in Diaspora Monitoring Group

 

The Nigerians in Diaspora Monitoring Group, has commended the Nigeria’s minister of state and NNPC GMD, Dr Ibe Kachikwu on the plan to replace the oil swap deal with the Direct Sale-Direct-Purchase (DSDP) in March this year and also for the removal of subsidy.

Coordinator of the group, Philip Agbese in an electronic statement made available to journalists also urged Kachikwu to investigate the PPMC”s over underhand dealings with some marketers in the industry to cause Nigerians some hardship.

Agbese said the minister has shown that he is not only courageous but has proven that he is the best man for the job.

He said, “This DSDP which re­places the crude oil swap initiative and the Offshore Processing Arrangement (OPA) will entrench transpar­ency into the crude oil for product trans­action in line with glob­al best practices.

“The initiative, like the Minister of State for Petroleum Resources has said, would save Nigeria a lot of money that would then go for other developmental projects. $I billion, is a lot of money that can finance a lot of capital projects.” On the removal of fuel subsidy, he said the Federal Government has no justification to retain the controversial fuel subsidy, arguing that the falling oil price and the attendant revenue shortfall have combined to make fuel subsidy absolutely uneconomical at this period of the nation’s history.

Agbese said the minister deserves commendation for his courage despite the pressure from corrupt beneficiaries of the subsidy regime.

Recall that the minister of state for petroleum resources, Dr. Ibe Kachikwu said yesterday that federal government will save $1billion annually, from the decision to scrap the oil swap deal.

Kachikwu, has disclosed that Nigerian National Petroleum Corporation (NNPC) will next month begin a new product import system of Direct-Sale–Direct-Purchase (DSDP).

The DSDP is to replace the controver­sial crude-for-products exchange arrange­ment popularly referred to as crude swap.

Nigeria Extractive Industries Transpar­ency Initiative (NEITI) reported last year that a whooping $966 million was lost by the country between 2009 and 2012 through the crude swap arrangement.

 

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