Business

Corruption takes centre stage as Nigeria loses $6bn from Shell, Eni Oil deal

The Nigerian government is expected to lose an estimated $6 billion because of corruption in the sale of the Oil Prospecting Licence (OPL) 245 to Shell and Eni Oil in 2011.

The oil field(245) which is one of the largest in the world is being extracted by two oil companies. But there have been alleged allegations and corruption in both Italy and Nigeria.

It was also reported that the deal hid huge generous fiscal terms for the companies. The deal between Shell, Eni, Nigerian government officials and Malibu Oil and Gas called for a Production Sharing Agreement (PSA) to be signed between only Shell and Eni subsidiaries. With this, only few earnings was going to government coffers.

“The deal for the OPL 245 licence includes previously unreported terms that left Nigeria without share of profit from oil produced to which it was entitled from the block, resulting in a historical poor deal for Nigeria,” the report stated. Government officials have negotiated the deal and instead of it serving as a source of revenue, they are rather taking small percentage to cover up themselves and the country gaining nothing.

It is noted that the exclusion of the Nigeria State from the PSA resulted in the removal of a central feature of production sharing contract that is a proportion of the oil produced known as ‘profit sharing’ is allocated to the government.

Global Witness(investigation conductors) also said Shell knew their billion dollar payment for the deal was going not into the public purse but would fill private pockets.

These have been a big challenge for African countries as individuals careless about country’s development than their personal success. Corruption and poverty have been on high alert in Nigeria and some other African countries in recent times, but how can these deals help Nigeria financially, if they were properly managed?

“This amount of money would be enough to educate six million teachers in Nigeria. It really can’t be underestimated just how big a deal like this could be for a country that right now has the highest rates of extreme poverty in the world,” Ava Lee, a campaigner at Global Witness told the BBC’s World Business Report.

 

Currently reports in Nigeria says Colleges of education are on strike due to lecturers demanding money. Nigeria needs to wake up and stand on their feet because it’s one of the biggest countries in African. We hope these officials will be arrested and asked to “vomit the lost money”.

By:Harry

Tags

Related Articles

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Check Also

Close
Close
%d bloggers like this: