We have noticed with regret the unlimited sales purchase agreements all over the internet that are being released by criminals in the Nigerian society claiming to have non existent ship loads of crude oil. If you do not know what is happening I will tell you now.
Nigeria produces 2 million barrels of crude oil daily according to OPEC figures. That’s 60 million barrels a month. Under joint partnership with the JV partners Shell, Chevron, Texaco, Exxonmobil and others. Roughly 40% of this crude is given to the Nigerian government to sell. The rest is sold by the JV partners to their partners abroad.
40% of 2,000,000 is 800,000 barrels a day.
Multiply this by 30 days and you get 24 million barrels a month that the government has to sell. This 24 million barrels are given to cronies of the Yar Adua administration or governments of other countries. The cronies are those who have helped him in his political campaign or in running the government. They are given these allocations by only one body in Nigeria and that’s the Crude Oil Marketing Department of the NNPC. If you are given an allocation you are subsequently given a letter from this body.
The question to ask now is how come Nigeria produces 2 million barrels a day and there are Sales Purchase Agreements for over 100 million barrels of crude oil per day all over the internet. I will reveal the secret to you now. 99% of these Sales Purchase agreements are all fake. The peddlers of these agreements are only looking for one thing from international buyers and that thing is a Letter of credit covering 2 million barrels of crude oil which is roughly 140 million dollars.
If a buyer issues a letter of credit for 140 million dollars to any Nigerian, he must first have the money in his account abroad before his bankers will agree to issue this letter. Once he issues this letter, his funds are trapped in that account until the transaction is completed or cancelled.
The Letter of credit is issued to the sellers bank in Nigeria. It can only be cancelled with permission of the sellers bank and the consent of the seller. If the buyer wants to cancel this transaction, he has to travel to Nigeria and find both the seller and his bankers. Without this he cannot cancel his Letter of credit. His funds are tied in his account abroad based on the LC he approved.
Now here is the deal which the so called sellers use to make their money. When the buyer finally finds the seller and his bankers in Nigeria, the seller will not give his consent for the Letter of credit to be cancelled since he has or he claims he has already paid millions to lift the crude oil and has been working on it for months. They now force the buyer to pay a damages fee of at least $200,000 or $100,000 before he can be allowed to cancel the letter of credit. This is why these so called sellers are incapable of putting a 2% performance bond down even after months of signing the contract and they always seek to remove this from the contract and prefer so called tanker to tanker transfers and not CIF transactions.
This money is very big for any Nigerian and they get away with it because to the buyer, 100,000 dollars or 200,000 dollars is easier to give away than a complete loss of 140 million dollars tied up in a bank in the USA or Europe which is normally on credit from the bank and is running interests. He needs his money free and clear from his bankers but cant get it. So he succumbs to this cheap blackmail just to cancel his Letter of credit and get his bulk money abroad. He leaves Nigeria very bitter with a vow never to do any business with any Nigerian again.
This is why I have always told you all that if they cant show their letter of allocation from NNPC crude oil marketing department, they have no crude. So stop listening to all the NAPIMS and BONNY terminal letters. They have no crude oil. Even if 100 agents sign it for commissions, they have no crude oil. They are only using desperate ignorant Nigerians who call themselves agents but dont know the business to make money at the back. There is no money coming to you as an agent if you are in a transaction that you have not seen the letter of allocation from NNPC crude oil marketing department.
Even if they add so called off Opec quotas and proof of products that you can get from anywhere, they have no crude oil. The simple thing you need to know if someone has crude oil is a letter of allocation from NNPC Crude Oil marketing department. Thats all you need and thats all you should require from any seller who says he has crude oil.
If you do not do this, they will only waste your time on a non existent 2 million barrels and give you long nights of sleeplessness hoping for a commission that does not exist. You do all the work as an agent and then they corner the buyer in Nigeria, collect a litlle big money at the back and dump you without even thinking twice about all your effort.
That’s why I say, don’t get yourself in fraud that you know nothing of because of greed.
If they cannot show you their allocation letter.
If you are dealing with a seller and he cannot show you his allocation letter from NNPC crude oil marketing department and no other agency, he has no crude. Bonny terminal does not give allocation letters. Its job is to supply people with crude oil on presentation of their allocation letters from NNPC crude oil marketing department and no other department of the NNPC handles this.
Claims of contacts in bonny with the head of bonny terminal Mr Fubara are all lies. Don’t let Nigerian fake sellers waste your precious time. Insist for a proof of allocation from NNPC crude oil marketing department. No other agency in Nigeria can give allocation except this office. Napims/Bonny terminal etc letters are all fake. Insist on a genuine letter from NNPC Crude Oil Marketing Department.
Article by: Anakwe Chime Joseph
