This year (2017) out of a total of 224 offers from companies wishing to buy and raise Nigerian crude oil for the period 2017/2018, 39 companies emerged victorious, with NNPC stating that when implementing pre-invitation offers and selecting offakerns after the controversy, which followed the process followed by the upper chambers of the National Assembly on May 25, 2017, the Petroleum Industry Governance Bill (PIGB) in the implementation of pre-invitations and the shortlist of offakers, which highlights the need for transparency as a fundamental means of promoting institutional, regulatory and commercial reforms in the oil industry. There is broad consensus that the commercial activities of the Nigerian oil industry need to be more transparent and accountable in order to accelerate reform efforts to diversify the economy and promote industrial growth. To this end, a number of approaches have been proposed to increase the transparency of crude oil trade agreements, particularly with the DSDP model currently used by the NNPC. Under this type of transaction, the contractor, either a refinery or a trading company, should increase a certain amount of crude oil, refine it abroad and return the resulting products to NNPC. Contracts set the expected yields of the products (i.e. the quantities of diesel, kerosene, gasoline, etc.) that the refinery will produce. The refining company can also pay NNPC in cash for all products that Nigeria does not need. In 2008, as fuel shortages worsened, NNPC made an offer for a takeover bid in late 2009 and signed one with BP subsidiary Nigermed. The following year, PPMC signed another takeover bid with the Ivorian refining company Ivorian Refining Company (SIR).
Dr. Bynoe stated that „the CTC has put in place a mechanism for the timing of gross load statements based on volume claims calculated taking into account the cost recovery rules of the oil agreement.“ This, he said, establishes a strict policy for the agreement, which suggests that possible delays could lead to loss of value and stop production on the floating, storage, production and unloading vessel. It was pointed out that the department works with its sister agencies to ensure efficient and efficient operation. This report will briefly focus on the business and contractual models used by the NNPC in crude oil trade agreements to formulate proposals to improve the trade framework for achieving fair business for Nigeria.