Subsidy probe: Reps demand detailed contract agreement between NNPC, companies

By Christiana Ekpa 

The House of Representatives ad-hoc committee probing the subsidy regime from 2017 to 2021 has urged all companies who signed agreement with the Nigeria National Petroleum Companies NNPC on the Direct Sale, Direct Purchase (DSDP) of crude oil to refined product to submit all relevant and detailed documents to its committee on Friday, this week. 

Chairman of the House ad-hoc, Mr. Al-Mustapha Aliyu made the call during a public hearing in Abuja on Wednesday.

Mr. Aliyu also directed that these companies  provide their profiles with the Corporate Affairs Commission before the House ad-hoc committee to ascertain if they truly merit the contract deal or not.

The public hearing which was almost stalled due to the representation of Chief Executive Officers (CEOs) of Mocol Oil and Gas, Sahara Business Development, Matrix Energy, A.A. Rano amongst other companies involved as against the earlier directives that they appeared in persons at the probe later continued as companies representatives took turns to respond to questions fielded by members of the committee.

Appearing first before the committee was Sahara Business Development who was represented by Stephanie Useni.

Useni sid Sahara Business Development were not involved in oil subsidy with the federal government.

She explained further that their deal with the Nigeria National Petroleum Companies NNPC was on Direct Sale, Direct Purchase (DSDP) of crude oil to Premium Motor Spirit (PMS) and was signed in 2016.

According to her, we lift NNPC crude oil to international market and refined and bring back fuel into the country.

Members of the committee to this regard frowned at Sahara Business Development for submitting only 2016 document on contract signed with NNPC instead of other contract agreement signed from 2017 to 2021.

Representing Mocol Oil and Gas at the hearing, director of operations, Hauwa Alfa after reeling out list of documents the ad-hoc committee had requested from companies involved in the probe said the company has never defaulted on the agreement arrangement with NNPC.

On his part, Director of Operations, A.A Rano, Sabiu Saidu who represented the company explained that A.A Rano, NNPC and Trafigura international company signed Direct Sale, Direct Purchase(DSDP) contract agreement from 2017 to 2020.