Nigeria Exchanges N1.64trn Crude for Refined PMS Under Direct Sale Direct Purchase
By Sunday Elom
Latest report from the Nigerian National Petroleum Company (NNPC) Limited has shown that Nigeria exchanged its crude oil valued at N1.64trillion for refined Premium Motor Spirit (PMS), from January to August 2021, under the Direct Sale Direct Purchase (DSDP) arrangement.
Nigeria introduced the DSDP scheme in 2016 to ensure adequate petrol imports into the country. The NNPC has been the sole importer of the commodity for over four years as other marketers have avoided PMS imports because of the current realities in the nation’s downstream sector.
The data showed that a total 63.46 million barrels of crude oil on DSDP cargoes were swapped for refined petrol within the period under review.
NNPC Limited said that in compliance with the Public Procurement Act 2007 and its Policy and Procedures, it engaged qualified and credible companies in a direct sale of crude oil and direct purchase of petroleum products to ensure sustained product supply across Nigeria.
The reports obtained by journalists from NNPC Limited showed that the volumes of crude oil swapped for refined petrol in January, February and March 2021 were 5.74 million, 9.39 million and 7.55 million barrels respectively.
Further analysis of the report indicated that the average price/barrel of crude oil and the exchange rates in the eight different months varied. Thus, the crude oil swapped under the DSDP scheme in January, February and March 2021 were valued at N123.6 billion, N231.88 billion and N184.53 billion respectively.
Similarly, in April, May and June, crude oil volumes of 6.34 million, 11.41 million and 8.48 million barrels swapped for refined petrol were valued at N166.35 billion, N300.21 billion and N239.26 billion respectively; while in July and August, volumes of crude oil that were swapped for refined petrol were 8.56 million barrels and 5.69 million barrels and were valued at N242.12 billion and N156.15 billion respectively.