Nigeria to Sell, Buy Oil Directly, Cut Out Middlemen

New managers of Nigerian National Petroleum Corp. say the West African nation will start selling and buying oil and gasoline directly to cut out middlemen.

The Mejiriser platform located in Ogbogoro community, on the outskirt of Port Harcourt, appears on Oct. 12, 2006, as it was inaugurated by then Nigerian President Olusegun Obasanjo near the southern oil city of Port Harcourt. The nation's first floating flow station—built by the local firm Transcoastal Woas at a cost of $3.1 million—is a joint venture project between state-run Nigerian National Petroleum Corporation (NNPC) and Chevron. The four-legged platform, looking like a bridge, with 520 metric tons topside, has a production manifold and two hydro-carbon drain vessels. Wole Emmanuel/AFP/Getty Images

LAGOS, Nigeria—New managers of Nigerian National Petroleum Corp. say the West African nation will start selling and buying oil and gasoline directly to cut out middlemen.

Tuesday’s announcement fits new President Muhammadu Buhari’s plan to curb corruption endemic in the industry in Africa’s biggest oil producer.

Nigeria produces 2 million barrels of crude a day, according to the corporation’s website. Nigerians consume about 9 million liters (2.4 million gallons) of gas daily, almost all imported because local refineries are inefficient. One barrel of crude produces about 30 gallons of diesel or fuel.

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