Nigeria’s oil sector is marred by a scandalous betrayal that has enriched a few while impoverishing millions. The oil marketers, often referred to as the ‘oil mafia’, have thrived on sharp practices, siphoning funds meant for national development. Here are five ways these marketers rob Nigerians, all under the watchful eye of the government, which has turned a blind eye to the rampant exploitation.
First, the marketers engage in Direct Sale and Direct Purchase (DSDP) schemes, where they take thousands of barrels of Nigeria’s high-quality Brent crude oil daily. This crude, in high demand globally, is sold abroad for massive profits. While the Nigerian National Petroleum Corporation (NNPC) turns a deaf ear to the outcry, these marketers pocket millions at the expense of the nation’s wealth.
Second, they import cheap, low-quality refined products from other countries while selling our premium crude internationally. This unethical practice results in Nigerians receiving substandard products, often with toxic impurities. The irony is that these marketers profit from our best resources while providing us with the worst alternatives.
Third, the oil mafia employs dodgy mathematics to inflate their operational costs, claiming that their landing costs exceed the market price of petrol in Nigeria. This fabricated scenario leads to inflated subsidy claims, costing the government trillions in wasted funds. It’s an intricate web of deception that allows them to manipulate the system for personal gain.
Fourth, despite being compensated for fake subsidies, many marketers engage in smuggling operations, exporting petrol to neighbouring countries at double the local price. This not only deprives Nigerians of affordable fuel but also exacerbates the economic struggles of the average citizen, who is left grappling with the high cost of living.
The ostentatious lifestyles of these oil marketers are evidences to their ill-gotten wealth. Frequent reports of them acquiring expensive properties and living lavishly starkly contrast with the struggles faced by ordinary Nigerians. This blatant flaunting of wealth raises questions about their integrity and the government’s complicity in allowing such corruption to persist. Someone once said it is the poor Nigerians who are subsidising the ‘rich’, nothing could be truer than this.
These practices have far-reaching consequences as they drain public resources that could fund development; creating economic instability, undermining energy security and fostering corruption in the petroleum sector
The real scandal lies in the former administration’s failure to curb these practices. While the oil mafia flourished, millions of Nigerians were left to suffer the consequences of their greed.
Recent reforms and increased scrutiny from regulatory bodies show promise, but more comprehensive oversight and structural changes are needed.
As Nigeria grapples with these challenges, the cost to ordinary citizens remains high. Understanding these mechanisms is the first step toward meaningful reform in Nigeria’s oil sector.
President Tinubu’s government must prioritise transparency, enforce strict regulations, and hold these marketers accountable for their actions. Only then can we hope to reclaim Nigeria’s oil wealth for the benefit of all.
