A total of 150.4 million barrels of crude oil valued at N3.04tn was swapped for refined petroleum products by the Nigerian National Petroleum Corporation between September 2018 and September 2019, latest figures from the oil firm showed.
Nigeria’s refineries are operating far below expectation in terms of crude oil refining and so the NNPC swaps crude oil with qualified companies, who in turn refine the commodity and supply refined petroleum products to the corporation.
The petroleum products that are delivered by the qualified companies are usually equivalent in value to the crude oil received from the NNPC.
The swap scheme is known as Direct Sale (of crude oil) and Direct Purchase (of petroleum products).
Source: Punch Newspaper
