Although the exact figures and the terms of reference are still confidential as the understanding and details related to the Nigerian National Petroleum Company Limited (NNPCL) Direct Selling Purchase Agreement (DSDP), it appears that Nigeria has sold more than million 364.5 barrels. oil worth $25.9 billion in the past three years and four months.In an interview yesterday, the experts called for a review of the exchange agreement and more than 13.9 trillion naira is being spent directly on the fuel subsidy of the administration of President Muhammadu Buhari, through the NNPC. Buhari, who doubles as president and minister of petroleum, has abandoned the idea of involving private traders in the importation of fuel,following the problems inherited from the era of President Goodluck Jonathan, where black people and well-meaning businessmen were getting paid and imported foreign currency. The development happened to NNPCPL, and it was called the "last resort" to import fuel and recorded its income as non-recovery. Obviously, with an oil market debt of about $3 billion and a failed refinery, NNPCL would have taken a swap contract to save its image and avoid bad credit and ensure guaranteed energy security. In the oil transition, mainly under the current control of NNPCPL, the first phase of the contract started in 2019 and will be completed in September 2020.
The second phase ends in September 2021 and the third phase should end in September 2022. Instead of easing, the second phase saw the program extended twice and more than 300,000 barrels per day (bpd) were awarded to 15 trading pairs.A second call for tenders saw the selection of 16 twin companies. Each will receive 20,000 barrels of crude per day to bring the daily share to 320,000 barrels. With the revelation of the NNPC that the government was terminated four months ago, there are indications that the DSDP, especially under the current NPL administration, took three years and four months. It is about 1,215 days old. In 2019/2020, the price of oil reached $41 per barrel. At about 300,000 barrels per day, that means the 109,500,000 barrels sold for the year should be worth $4.4 billion. In 2020/2021, when the price of oil reaches $71 per barrel, 109,500,000 barrels converted should be worth about $7.7 billion. In 2021/2022, when oil price averaged $100 per barrel, the yearly exchange should be worth $10.9 billion, while the last four months should be worth $2.9billion.
