News / Economy

Nigerian Lawmakers Investigate Swiss Traders in Oil Scam

FILE - An aerial view of the oil hub city Port Harcourt in Nigeria's Delta region.FILE - An aerial view of the oil hub city Port Harcourt in Nigeria's Delta region.
x
FILE - An aerial view of the oil hub city Port Harcourt in Nigeria's Delta region.
FILE - An aerial view of the oil hub city Port Harcourt in Nigeria's Delta region.
Heather Murdock
Nigerian lawmakers are launching an investigation into the oil industry after a financial watchdog group said Swiss traders may have been involved in what they called ‘‘one of the most massive frauds the African continent has experienced.’’ 

In January 2012 outraged Nigerian citizens took to the streets when fuel subsidies were cut and the price of gas and food skyrocketed.  The subsidy was eventually reinstated.

By then the public already knew that corrupt oil officials had stolen $6.8 billion worth of the money meant to pay for the subsidy between 2009 and 2011. 

Nearly two years later, the scandal lives on and the list of the people involved is still growing. 

The financial watchdog group Berne Declaration says Swiss commodities traders are major players in the oil business in Nigeria, the largest exporter in Africa.  Berne Declaration senior researcher Marc Gueniat says some of those traders may be involved in the scam.

“Swiss traders are delivering petroleum products to Nigerian importers who have absolutely no kind of credibility businesswise,” he said.

Oil companies with no credibility are well-documented in Nigeria.  When the $6.8 billion fraud was exposed, so were companies that neither import nor export any oil products at all but still get subsidy money.

Gueniat says Swiss traders are allowed to deal with officials or relatives of officials who may have access to public funds and a history of corruption.

“They are completely free to do business with such people, with such companies according to Swiss laws.  And this is a problem for us,” he said.

He says there is evidence Nigeria’s national petroleum company, known as the NNPC, has made shady deals with two of the world’s largest oil traders, Vitol Group and Trafigura, both based in Switzerland.

The NNPC denies the accusation, saying the report is “not only bogus but strewn with inaccurate and poorly researched data.”

Vitol Group and Trafigura also say the report is false, and that they have strict anti-corruption policies.

Nigerian lawmakers launched an investigation into the charges, saying they were both “alarmed” and “disturbed.”

If they are, in fact, happening, these deals rob the people of money meant for government activities, like building roads and schools, running hospitals, and securing the country.  Most of Nigeria’s national budget comes from oil sales.

But what is really going on, Gueniat says, is hard to say because the NNPC lacks transparency to the point where the company is almost “a state within a state.”

“This is one of the main problems regarding the oil industry in Nigeria.  For instance NNPC stopped publishing annual reports since 2005.  This is astonishing considering the importance this company has for the country,” he said.

The Berne Declaration report also says that in 2011, Swiss traders bought most of $8.7 billion worth of crude oil set aside for refineries that do not have the capacity to use all the oil they get.

Profits from those sales do not go to the government.  When asked why, the NNPC did not respond.

You May Like

Changing Under Pressure, IS ‘Potent’ as Ever

US intel officials describe Ramadi's fall as concerning, but say it isn't emblematic of larger effort to degrade IS capabilities More

Nigeria Fuel Shortage Shows Fragility of Africa’s Oil Giant

Although it is the largest oil producer in Africa, country has nearly ran out of fuel it needs to power its generators, cars and airplanes over the past week More

Arrested Football Officials Come Mainly From the Americas

US Justice Department alleges defendants participated in 24-year scheme to enrich themselves through corruption of international soccer More

This forum has been closed.
Comment Sorting
Comments
     
by: Godwin from: Nigeria
November 20, 2013 11:42 AM
You can investigate it to the next decade and come up with nothing. But when an international group takes it up and conducts its investigation from outside the borders of Nigeria, then you will be sure to discover all the faults. We have had issues where the courts in the country cannot find evidence enough to convict a suspect in 103 count charges; whereas a court in England convicted same suspect from 3 count charges only. Here corruption is glorified to statecraft. At the end of the day nothing will be discovered, both the Nigerians and their foreign counterparts in the crime will even become richer because of the money that will exchange hands, even in the open.

It is not less often that we hear of scam and fraud, but at the end nothing is proved, nothing changes, instead the public fund suffers further incursion. The subsidy investigation that has been going on for the past two years has so far come up with nothing. Instead those assigned the job begin to flaunt wealth gotten overnight. Where did the sudden wealth come from? In Nigeria, only the poor commit crime and face the law, the rich hardly do any wrong, and if arraigned, always go acquitted, even though it is glaring they are guilty. Sometimes they raise the dust, but the settlement is done in their secret court - what the open court does is to declare them not guilty.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
3D Printer Makes Replica of Iconic Sports Cari
|| 0:00:00
...    
🔇
X
George Putic
May 27, 2015 9:31 PM
Cars with parts made by 3D printers are already on the road, but engineers are still learning about this new technology. While testing the possibility of printing an entire car, researchers at the U.S. Department of Energy recently created an electric-powered replica of an iconic sports roadster. VOA’s George Putic has more.
Video

Video 3D Printer Makes Replica of Iconic Sports Car

Cars with parts made by 3D printers are already on the road, but engineers are still learning about this new technology. While testing the possibility of printing an entire car, researchers at the U.S. Department of Energy recently created an electric-powered replica of an iconic sports roadster. VOA’s George Putic has more.
Video

Video US Voters Seek Answers From Presidential Candidates on IS Gains

The growth of the Islamic State militant group in Iraq and Syria comes as the 2016 U.S. presidential campaign kicks off in the Midwest state of Iowa.   As VOA’s Kane Farabaugh reports, voters want to know how the candidates would handle recent militant gains in the Middle East.
Video

Video A Small Oasis on Kabul's Outskirts Provides Relief From Security Tensions

When people in Kabul want to get away from the city and relax, many choose Qargha Lake, a small resort on the outskirts of Kabul. Ayesha Tanzeem visited and talked with people about the precious oasis.
Video

Video Film Festival Looks at Indigenous Peoples, Culture Conflict

A recent Los Angeles film festival highlighted the plight of people caught between two cultures. Mike O'Sullivan has more on the the Garifuna International Film Festival, a Los Angeles forum created by a woman from Central America who wants the world to know more about her culture.
Video

Video Kenyans Lament Losing Sons to al-Shabab

There is agony, fear and lost hope in the Kenyan town of Isiolo, a key target of a new al-Shabab recruitment drive. VOA's Mohammed Yusuf visits Isiolo to speak with families and at least one man who says he was a recruiter.
Video

Video Scientists Say Plankton More Important Than Previously Thought

Tiny ocean creatures called plankton are mostly thought of as food for whales and other large marine animals, but a four-year global study discovered, among other things, that plankton are a major source of oxygen on our planet. VOA’s George Putic reports.
Video

Video US-led Coalition Gives Some Weapons to Iraqi Troops

In a video released Tuesday from the Iraqi Ministry of Defense, Iraqi forces and U.S.-led coalition troops survey a cache of weapons supplied to help Iraq liberate Mosul from Islamic State group. According to a statement provided with the video, the ministry and the U.S.-led coaltion troops have started ''supplying the 16th army division with medium and light weapons in preparation to liberate Mosul and nearby areas from Da'esh (Arabic acronym for Islamic State group).''
Video

Video Amnesty International: 'Overwhelming Evidence' of War Crimes in Ukraine

Human rights group Amnesty International says there is overwhelming evidence of ongoing war crimes in Ukraine, despite a tentative cease-fire with pro-Russian rebels. Researchers interviewed more than 30 prisoners from both sides of the conflict and all but one said they were tortured. Henry Ridgwell reports for VOA from London.
Video

Video Washington Parade Honors Those Killed Serving in US Military

Every year, on the last Monday in the month of May, millions of Americans honor the memories of those killed while serving in the armed forces. Memorial Day is a tradition that dates back to the 19th Century. While many people celebrate the federal holiday with a barbecue and a day off from work, for those who’ve served in the military, it’s a special day to remember those who made the ultimate sacrifice. Arash Arabasadi reports for VOA from Washington.
Video

Video Kenya’s Capital Sees Rise in Shisha Parlors

In Kenya, the smoking of shisha, a type of flavored tobacco, is the latest craze. Patrons are flocking to shisha parlors to smoke and socialize. But the practice can be addictive and harmful, though many dabblers may not realize the dangers, according to a new review. Lenny Ruvaga has more on the story for VOA from Nairobi, Kenya.
Video

Video Rolling Thunder Run Reveals Changed Attitudes Towards Vietnam War

For many US war veterans, the Memorial Day holiday is an opportunity to look back at a divisive conflict in the nation’s history and to remember those who did not make it home.
Video

Video Female American Soldiers: Healing Through Filmmaking

According to the United States Defense Department, there are more than 200-thousand women serving in the U.S. Armed Forces.  Like their male counterparts, females have experiences that can be very traumatic.  VOA's Bernard Shusman tells us about a program that is helping some American women in the military heal through filmmaking.

VOA Blogs

World Currencies

EUR
USD
0.9152
JPY
USD
122.70
GBP
USD
0.6494
CAD
USD
1.2374
INR
USD
63.925

Rates may not be current.