The Energy Reforms Advocates, a formidable coalition of activists championing transparency and accountability within Nigeria’s oil and gas sector, has sounded the alarm over an alleged “unholy alliance” between the Nigerian National Petroleum Company Limited (NNPCL) and Matrix Energy Group. This purported partnership, according to the advocates, is specifically designed to deprive Nigeria of crucial tax revenues.
A damning report compiled by the group has unearthed irrefutable evidence linking Matrix Energy’s operations to Malta, a notorious European hub for clandestine blending and ship-to-ship transfers of sanctioned Russian oil and petroleum products.
Further investigation revealed that crude oil allocations by NNPCL to Matrix Energy Group are traded through an intermediary, Gulf Transport & Trading (GTT), registered in the United Arab Emirates (UAE). These allocations, totaling nearly 38% of Nigeria’s oil import quota, allegedly circumvent Nigeria’s tax system, resulting in billions of naira in lost revenue.
Matrix Energy, helmed by Abdulkabir Adisa Aliu, purportedly receives up to four crude oil cargoes per month from NNPCL. Instead of trading these allocations directly within Nigeria, where they would be subject to taxes and government oversight, the crude is rerouted through GTT. This UAE-based trading company allegedly serves as a front for Matrix’s offshore operations.
The scheme enables the oil to be sold at a premium of $3 per barrel, generating substantial profits outside Nigeria’s taxation system. This brazen exploitation not only undermines Nigeria’s economic interests but also raises serious concerns about corruption and money laundering.
An exhaustive examination of documents by Energy Reforms Advocates reveals that this clandestine arrangement yields an estimated $150 million (approximately N240 billion at the current exchange rate of N1,600 per dollar) in untaxed profits annually, denying Nigeria’s treasury much-needed revenue.
Given oil’s status as Nigeria’s primary revenue source, this flagrant exploitation has far-reaching consequences, impacting every sector of the country. The ripple effects of this malfeasance are felt across the economy, exacerbating financial hardships and undermining national development. These illicit gains, which rightfully belong to the Nigerian people, are instead unlawfully appropriated by Matrix Energy and its collaborators, dealing a devastating blow to the nation’s economic well-being.
Further investigation has uncovered an even more alarming aspect of this scheme. Poly Pro Trading, a Dubai-registered entity purportedly operating from OneJLT Towers 05.015 in the Dubai Free Trade Zone, appears to be a fictitious company lacking a physical office presence.
Energy Reforms Advocates categorize this location as a mere “business front,” cleverly designed to lend legitimacy to illicit oil transactions. This revelation raises profound concerns regarding the true nature and intentions of these offshore entities, particularly their role in siphoning Nigeria’s wealth through elaborate schemes.
Further in-depth investigations into Matrix Energy’s operations have uncovered the company’s clandestine involvement in the importation of substandard refined petrochemicals, which are subsequently distributed throughout Nigeria, perpetuating a hazardous cycle of environmental degradation and health risks. Documents obtained by Energy Reforms Advocates reveal that a substantial percentage of Matrix’s imports originate from Malta, a small European nation lacking significant oil refining capacity. However, Malta has gained notoriety for its role in illicitly refining Russian oil, which is then surreptitiously traded to unpatriotic representatives from various countries.
Alarmingly, over 35% of shipments from Malta contain petroleum products of questionable quality, including naphtha and gasoline blends, which fall short of global standards. These subpar products are then transshipped through various African ports, ultimately infiltrating Nigeria’s fuel distribution system.
Notably, diesel from Russia is notoriously off-spec, and diesels from Matrix filling stations have failed the ASTM D4294 test method, which provides a rapid and precise measurement of total sulfur in petroleum and petroleum products with minimal sample preparation. This situation has led to Matrix Energy peddling flammable diesel with toxic fumes to unsuspecting Nigerians, while reaping enormous profits.
The ecological and health consequences of this low-grade fuel are dire. Increased emissions from these substandard products lead to elevated pollution levels, frequent vehicle breakdowns, and a precipitous decline in public health. Experts warn that this illicit trade contributes significantly to Nigeria’s escalating mortality rate, as unsuspecting citizens are exposed to these harmful products. The sheer magnitude of this environmental and health crisis raises urgent concerns about the government’s regulatory oversight and the company’s blatant disregard for human life and the environment.
Energy Reforms Advocates contend that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is culpably complicit in the illicit operations, willfully disregarding its statutory responsibility to ensure the quality of petroleum imports. The advocacy group asserts that Matrix Energy inaction is facilitated by its cozy relationship with high-ranking officials like, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA),Farouk Ahmed, and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari.
By failing to regulate fuel quality effectively, NMDPRA has created a regulatory vacuum that international commodity traders and Nigerian marketers have exploited with impunity, importing subpar fuels without consequence.
Regrettably, the presence of unpatriotic individuals, including Adisa Aliu, Farouk Ahmed, Mele Kyari, and their associates, in key decision-making positions has perpetuated the corruption plaguing Nigeria’s oil and gas sector. The disturbing revelations surrounding Matrix Energy and Gulf Transport & Trading’s (GTT) unscrupulous business practices not only cast doubt on the integrity of NNPCL’s leadership but also tarnish the reputation of Nigeria’s entire oil and gas industry.
As Africa’s largest oil producer, Nigeria’s economy is heavily reliant on crude exports and the accompanying revenues. However, these illicit dealings deprive the country of vital funds that could be invested in critical infrastructure, education, healthcare, and essential public services. The actions of these unpatriotic elements in power have far-reaching and devastating consequences, severely impacting various aspects of Nigeria’s development, including its economic, social, infrastructure, political, and humanitarian well-being.
With a great insight into the understanding of this situation as a Syndicate operation involving high profile corrupt individuals, the Energy Reforms Advocates are urgently appealing to relevant authorities, notably the Economic and Financial Crimes Commission (EFCC), to initiate a thorough investigation into these illicit activities and prosecute all individuals and organizations implicated.
The advocacy group is also demanding enhanced transparency in the Nigerian National Petroleum Company Limited’s (NNPCL) crude oil allocation processes and more stringent oversight of the nation’s oil export channels to prevent further exploitation.
In response to these disturbing findings, Energy Reforms Advocates are pressing the Nigerian government to conduct a comprehensive review of all crude oil export contracts, ensuring that companies like Matrix Energy and Gulf Transport & Trading (GTT) are held accountable for their actions.
The group is emphasizing the imperative need for sweeping reforms in the oil and gas sector, specifically targeting the pervasive exploitation by foreign entities in collusion with corrupt Nigerian officials.
“This constitutes a systematic plundering of Nigeria’s resources,” declared a spokesperson for Energy Reforms Advocates. “We can no longer tolerate the inaction that enables a select few privileged companies, in cahoots with corrupt officials, to siphon away our nation’s wealth. The time has come for decisive government intervention.”
As this saga unfolds, Energy Reforms Advocates urge Nigerians to remain vigilant, demanding the transformative change desperately needed in this critical sector. The advocacy group persists in its demands for transparency, accountability, and justice on behalf of Nigerians whose future is being jeopardized by these unscrupulous dealings.