The allegation that international traders bilked milked NNPC of hundreds of millions of dollars is yet another example of the poor management of Nigeria's energy sector, and highlights the complex links between crude sales, fuel importation, refinery maintenance, and energy production here. 

Otedola is probably right in suggesting that long-standing sweetheart deals between the NNPC and a variety of fuel traders is keeping the system inefficient.  That may also explain why the GON just can't seem to get its refineries running even after spending a billion dollars or more on maintenance contracts over the last four years.

Otedola said he initially bid to purchase the Port Harcourt refinery offered for privatization, but he recently told
President Obasanjo he will not invest in the refinery so long as NNPC purchases fuel from traders instead of negotiating directly with refineries in other countries and leasing ships itself to deliver fuel to Nigeria.  It is not clear if Otedola's assumption that the international traders' stake in Nigeria's current fuel market is the main driver behind the country's refinery woes.  But it is clear that the fundamentals of infrastructure security, interim supply
stability, and transactional transparency must still be addressed if the GON is to be taken seriously about its
efforts to deregulate and largely privatize Nigeria's downstream petroleum sector.

http://wikileaks.org/cable/2004/04/04LAGOS767.html

An insight to the real reason our refineries will never work and the common man wallowing in incessant hardship.