The Nigerian National Petroleum Corporation (NNPC) has given reasons why it prefers to use the Free-on-Board (FOB) system to export Nigeria’s crude oil to their respective destinations and not the Cost, Insurance and Freight (CIF) system. The NNPC, according to a statement it sent out yesterday in Abuja, explained that despite the value erosion inherent in the FOB sale arrangement, prevailing security situations and the need to guarantee steady revenue into the Federation Account had informed its preference for the system. The corporation justified its preference for the FOB during a high-powered meeting of stakeholders in the maritime industry which the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, and NNPC’s Group Managing Director, Dr. Maikanti Baru, attended. The meeting according to the statement signed by the Group General Manager, Public Affairs of the NNPC, Mr. Ndu Ughamadu, was convened to generate ideas on how best to export Nigerian crude oil to attract
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