Opinion
How Phoney Is Duke Oil?
By: Ibelema Jumbo
For the average Nigerian consumer of petrol, which is officially referred to as Premium Motor Spirit (PMS), the experiences of the past three weeks must have been extremely harrowing.
The scarcity of PMS, ostensibly caused by the importation of contaminated product, had resulted in long queues at many fuel retail outlets across the country with the litre price reportedly reaching from the normal N165 to as high as N400 in some states. Even more disturbing was news of the damages which the tainted import had caused to vehicles and power engines of some early buyers.
According to Mele Kyari, group managing director of the Nigerian National Petroleum Company Limited (NNPC), his firm had received a report from one of its quality inspectors on January 20 2022, indicating that there were emulsion particles in the PMS cargoes shipped to the country from Antwerp in Belgium. It was said to have been laced with about 20 per cent methanol – a prohibited substance in Nigeria’s fuel imports.
He claimed that the adulterated petrol was imported by the NNPC’s Direct Sale Direct Purchase (DSDP) suppliers, namely MRS Oil, Emadeb/Hyde/AY Maikifi/Brittania-U Consortium, Oando and Duke Oil. Explaining further, he said that under this DSDP crude-swap scheme, selected overseas refiners, international traders and Nigerian oil marketing firms were allocated petroleum quantities in exchange for the delivery of an equal value of PMS and other refined products to NNPC.
But MRS had earlier disputed this, insisting that Duke Oil was the sole importer of petroleum products into Nigeria on behalf of NNPC, its parent company; and that the dirty fuel was distributed to the various retailing companies by the oil behemoth.
Surely, one can recall that during its operation, the above products importation arrangement came with a nationally televised open-bidding system where eligible firms were selected. But that was until about three years ago when the oil-sector regulator announced that only its Duke Oil would carry on the importation of fuel into Nigeria.
This had followed the discovery of sharp practices by the licensed oil importers, leading to the shipment and distribution of poor quality products in the country. So, how come the same NNPC is the very one releasing a list of private fuel importers? Again, is it likely that Duke Oil and the other three firms fingered by Kyari may have conspired to source their supplies from the same ‘dubious’ Belgian refiner?
In fact, the latest embarrassment is what would most certainly visit any major oil-producing country with four dormant refineries but whose leaders and retired oil executives would rather build private fuel storage depots and prefer that the country continues to import petroleum products than rehabilitate the refineries for the nation’s overall benefit.
However, that is not the focus of this write-up. Instead, my concern here is that the verbal smackdown between these oil-sector giants has thrown up something very important but which, I’m afraid, might get drowned by the enduring hullabaloo. It pertains to the suspected shady establishment of Duke Oil 32 years ago during the regime of General Ibrahim Babangida.
Reports emanating from the dirty fuel brouhaha have it that, as the trading arm of NNPC, Duke Oil Company Inc was registered in Panama under the Spanish name ‘Sociedad Anonima’, which in English translates to Anonymous Society. This simply suggests that its promoters had elected to remain faceless ab initio. And let us also be reminded that this Central American country has always been notorious as a safe haven for money launderers.
It, therefore, calls to question the reason a state oil corporation like NNPC would opt to float a subsidiary firm with secret shareholders and also pick a sleazy enclave for its registration.
Until 2019, Duke Oil was said to have registered and operated an offshoot in London. Known as Duke Oil Services, the new firm has relocated to Dubai apparently to draw close to Asia which is fast becoming the main destination for Nigeria’s petroleum exports.
If indeed Duke Oil was registered with a hazy ownership structure, it then means that a few faceless individuals had, over the years, consistently withdrawn and shared among themselves profits that had accrued to the firm from its diverse lucrative transactions. And this may also explain part of why NNPC is often reported to have operated in breach of the federal government’s Treasury Single Account (TSA) framework.
Given such circumstances, therefore, would anybody still hold the opinion that Lamido Sanusi, as Central Bank governor, was crying wolf where there was none when he claimed that the sum of N20 billion was missing from the NNPC coffers?
The story of Nigeria’s oil and gas industry is replete with sordid tales of local players and their expatriate collaborators perpetually devising schemes to rip the nation off through bogus companies and shady contracts. Recent examples include the Process & Industrial Development (P&ID) case for which an overseas court ordered the Nigeria government to pay an accumulated sum of $9.6 billion in 2017 over a failed gas development contract. Nigeria has since appealed the judgment while insisting that the entire contract was a scam.
We surely could not have forgotten the OPL 245 saga popularly tagged the Malabu Oil scandal involving Shell and ENI’s transfer of $1.1 billion through the federal government to some accounts controlled by a former Petroleum Minister, Dan Etete.
Or need I remind us of the shadowy Mexican syndicate of suspected international fraudsters which reportedly insisted on being paid for exposing the alleged collusion of some Nigerian top officials with foreigners to sell 48 million barrels of crude oil already shipped out of the country?
May God save this nation.
Opinion
Professor Kamene Okonjo: A Life Beyond Motherhood
Quote “Professor Kamene Okonjo
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Yet, to remember Professor Kam
Professor Okonjo was the belov
one of the most dramatic chapt
On December 14, 2012, the then
She leaves behind children, gr
Professor Kamene Okonjo deserv
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Opinion
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Quote: An African who invokes
This is the concluding part
… Given the fact that I was
At the end of the visit by the
Back to my apartment, at abo
Under normal circumstances, yo
That all she asks is that Chie
For some reason that I do not
I believe that everyone in hu
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Opinion
FG’s Transport Support And Rivers Workers
The Federal Government’s approval of a N70,000 monthly transport intervention for public service workers for six months, beginning in November 2026, offers hope to employees struggling with the rising cost of living. The agreement with the Nigeria Labour Congress (NLC), reached at a conciliation meeting in Abuja on October 27, is intended to cushion transport costs and ease pressure on workers’ incomes. But for public servants in Rivers State, it raises a familiar question: will the State Government key into the intervention and ensure that its workers benefit? The agreement provides for N70,000 monthly across all levels, for six months. The Federal Government also approved peculiar allowance arrears effective from May 1, 2026, to be paid in three equal instalments beginning in November.
The parties agreed to reconvene after one month to assess implementation. Ultimately, the value of these resolutions will be measured not by announcements but by whether eligible workers receive the money. Transport costs consume a substantial share of many civil servants’ earnings before they can meet household needs. Support for commuting is therefore not a luxury or political favour; it is temporary assistance to help workers remain at their jobs without sinking further into hardship. For lower-paid employees, transport costs can turn modest salaries into a daily exercise in difficult choices and sacrifice.
The agreement also urges State and Local Governments to participate and unions to press for implementation. The federal agreement does not automatically guarantee that every State and Local Government employee will receive the support. State authorities must clarify how it will apply to their workforce, make the necessary arrangements and publish a payment timetable. Rivers State must approach the arrangement with urgency and transparency. The Government should State whether it will implement the intervention and when payments will begin. Any administrative or financial question should be addressed promptly with organised labour, not allowed to become excuses for delay.
The concern is sharpened by the earlier N35,000 monthly wage award introduced by the Federal Government in 2023 after petrol subsidy removal. It was intended as temporary relief pending a new national minimum wage. While several States negotiated and paid wage awards or related sums, implementation nationwide was uneven. Reports in 2024 indicated that many States had failed to pay the federal award, while others provided different amounts. In Rivers, labour and media reports raised concerns about implementation of the N35,000 award for State workers, amid separate announcements and arrangements concerning Local Government employees.
The wage award was meant to ease the immediate effects of subsidy removal, yet workers faced uncertainty over whether the promised relief would reach them. In February 2024, the Rivers State Government announced approval of the N35,000 award for local government workers, but subsequent reports showed that implementation across worker categories remained a concern. The lesson is clear: approval and implementation are not the same. A declaration at a meeting offers little comfort to a worker whose account does not reflect the promised payment. For workers who travel to their offices daily, the implications of delayed support are significant. Transportation expenses compete with food, rent, school fees, healthcare and other essential household needs.
As fares rise, employees may be forced to reduce spending on necessities or borrow to sustain their families. A timely transport intervention would therefore provide practical relief and demonstrate that government understands the economic pressures confronting its workforce. Its temporary nature makes prompt implementation even more important. It is fair to acknowledge that this transport intervention is a new agreement and that its administrative details may require clarification. Rivers State should not be condemned in advance for a failure that has not occurred. Nevertheless, the earlier experience gives workers legitimate grounds to seek assurances before the November commencement date. The State should avoid allowing uncertainty to persist until workers begin asking why the promised assistance has not arrived.
The NLC and unions in Rivers State should engage the State Government immediately and seek a written commitment, an implementation plan and a process for reporting missed payments. If clarification from the Federal Government is needed, the State should seek it without abandoning the goal of providing relief. Labour leaders must also keep members informed about progress and insist that any agreed arrangements are applied fairly and transparently. The Rivers State Government should treat this intervention as an opportunity to rebuild confidence. Timely support would show that workers’ welfare is more than a talking point and that the State recognises the economic realities confronting its employees.
Silence, delay or selective implementation, by contrast, would revive frustration over earlier relief measures and weaken trust between government and labour. Every month lost to administrative delay leaves workers facing the same transport burden without the intended assistance. The State should consult labour, publish arrangements and pay eligible workers on time. Rivers workers should not have to wonder whether federal relief will reach them. The Federal Government has announced the support; now the State must make its position clear. We hope the N70,000 monthly transport intervention will not follow the troubling path of the earlier wage award. Rivers State should learn from that experience and ensure that this time, relief is not merely promised but delivered.
Sylvia ThankGod-Amadi
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