Nigeria: Millions Missing from Oil Revenues

A scam in Nigeria’s oil industry has resulted in the loss of millions in revenue. (Google Images)

BBC Africa is reporting that millions of dollars have been lost in the Nigerian oil industry due to a “price-fixing scam.” A total of $29 billion is missing due to the scam, with $6 billion disappearing ever year, and it is estimated $400 billion has been stolen since Nigeria’s independence in 1960. While Nigeria produces a great percentage of the world’s oil, its people rarely see the benefit of its success; most Nigerians continue to live in extreme poverty.

According to BBC Africa:

“The Petroleum Revenue Special Task Force, headed by former anti-corruption chief Nuhu Ribadu, revealed in its report that losses of revenue to the treasury over apparent gas price-fixing involved dealings between Total, Eni and Shell and government officials.

The report does not suggest the companies broke the law but called for measures to be put in place to ensure all transactions are more transparent.

It said that oil and gas companies owe the treasury more than $3bn in royalties.

For the period 2005 to 2011, it said $566m was owed in signature bonuses – the fees a company is supposed to pay up front for the right to exploit an oil block.”

Read more about this story at BBC Africa and learn more about how Nigerian oil is being stolen.

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