NNPC Failed to Remit $13bn NLNG Earnings in Eight Years

The 2013 audit and financial report of Nigeria’s oil and gas industry undertaken by the Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that the Nigerian National Petroleum Corporation (NNPC) did not remit the $12.9 billion it received from the Nigeria Liquefied Natural Gas (NLNG) Company over an eight-year period to the federal government.

The report was presented monday in Abuja by the Minister of Solid Minerals Development and Chairman of the NEITI board, Dr. Kayode Fayemi.

The report said the NLNG remittance shortfall from NNPC was from 2005 to 2013.
It further noted that as at 2013 which the report focused on, the state oil firm did not remit $1.29 billion it got from the NLNG. NNPC, it said, acknowledged receipt of the sum from NLNG.

The report added that at the time it was signed off, there were no traces of NNPC’s remittance of the sum into the Federation Account or to the government.

“The audit revealed that Nigeria Liquefied Natural Gas (NLNG) Company paid the sum of $1.289 billion as dividends, interest and loan repayment for 2013. NNPC acknowledged receipt of this amount but did not remit it to either the federal government or the federation,” said Fayemi in his disclosure of the audit highlights.

He said: “However, it is important to also note that the 2013 figure brings to $12.9 billion the total NLNG payments received by NNPC between 2005 and 2013 but not remitted by NNPC to the federal government or the federation.”
He added that Nigeria earned $58.07 billion from her hydrocarbon industry in 2013, eight per cent lower than the $62.9 billion earned in 2012.

The country, Fayemi said, produced a total of 800,488,000 barrels of crude oil in 2013.
According to him, the sums of $5.966 billion and N20.4 billion was lost by the country within the period, mainly from NNPC’s operation of the Offshore Processing Agreements (OPA), crude oil swap arrangements and through product theft.

The audit, according to the minister, equally showed that the sums of $3.8 billion and N358.3 billion were still outstanding payments due to the federation from the NNPC and all of its subsidiaries.

“These outstanding payments were due from unpaid consideration from the divested OMLs, cash-call refunds from NAPIMS, and NPDC liftings from the NAOC (AGIP) JV,” Fayemi explained.

He also stated that due to the absence of a new fiscal regime for the industry, the sum of $599.98 million was reported in the audit as underpayments to the federation from petroleum profit taxes and royalties by oil and gas companies as a result of the use of different pricing methodology by the government and the companies.

On audited crude oil and product losses, Fayemi said: “The report put the total value of crude oil losses to the federation, as reported by three JV companies in 2013, at $4.7 billion.”
This, he explained, represented an increase of 46 per cent over 2012.

“For downstream, COMD (Crude Oil Marketing Department of NNPC) records showed that out of 38.263 million barrels allocated to the refineries in 2013 for local refining, 2.401mb were lost through theft and vandalism.
“The report noted that the integrity of the pipelines network that supplies products has been severely battered over the years from damage by vandals,” added Fayemi.

The report also condemned the grant of pioneer status to oil and gas companies, saying it had greatly undermined the optimal collection of revenues due from petroleum profit taxes.

“The legal framework governing the pioneer status is a subsidiary legislation of the Company Income Tax Act (CITA). The CITA does not apply to oil and gas companies, as oil and gas companies are taxed under PPT,” Fayemi noted.
On metering, the report also noted that very little progress had been made on the implementation of enhanced measurement arrangements for both downstream and upstream hydrocarbon flows.

Similarly, Fayemi said N33.86 billion accrued to the federation in 2013 from the solid minerals sector, amounting to an increase of 7.6 per cent over the N31.5 billion generated in 2012
He said of this amount, payments from cement manufacturing companies accounted for N30.47 billion (89.98 per cent); construction companies – N1.98 billion (5.83 per cent); and mining and quarrying companies – N1.42 billion (4.19 per cent).

He explained: “The distribution of revenues among government agencies showed that N28.954 billion was collected by the Federal Inland Revenue Service (FIRS); N1.343 billion by the Mines Inspectorate Department (MID) and N704 million by the Mining Cadastral Office (MCO).

He said unilateral disclosures by companies not reconciled in the audit scope came to N2.861 billion while N748 million was reported as unilateral disclosures by government entities.

Kachikwu Calls for Dialogue with Niger Delta Militants

EFCC: How ex-militant defrauded NIMASA of N24bn Shola Oyeyipo in Lagos and Sylvester Idowu in Warri

Contrary to application of brutal force against militants in the Niger Delta region, the federal government has been advised to engage the vandals who have been attacking oil installations in the region in dialogue.

Making the call yesterday during an interactive session with a coalition of civil society groups held in Lagos, the junior petroleum minister, Ibe Kackikwu, said government should use such opportunity to speak to the militants on why their actions are inimical to the oil rich region.

According to Kachikwu, who noted that government had realised that military tanks would not address the problem of the militants, as the activities of militants is working against efforts by the government to improve the Nigerian economy.
The petroleum minister, who was at the session with Minister of Information and Culture, Alhaji Lai Mohammed, said he was prepared to engage the people in dialogue with the hope to finding lasting solution to the problems in the region

“The military barrels cannot stop or solve problem of militancy in the Niger Delta region. I will have to go back to my brothers; they are our brothers we will go and dialogue with them,” Kachikwu said.

Speaking on fuel subsidy and the recent hike in price of petrol, the state petroleum minister said it was no longer feasible for government to continue the payment of subsidy.

He told the civil rights activits that Nigeria lost over N5trillion to subsidy in five years and that subsidy had to be removed because the government was broke.

Explaining that with the policy, the product became available, he said that was because those who would have hoarded the product no longer hoard because there was no incentive to do so anymore.

He said the problem of over bloated quantity of consumption as a way to increase subsidy payment had been stopped.
Kachikwu said if government continues to subsidise fuel, it might be impossible to provide the citizenry with roads, security and other important infrastructure.

On his part, Mohammed said the dialogue with the civil society organisations would be institutionalised and that it would continue throughout the four year tenure of the administration.

He also assured the people that government would continue with its town hall meetings across the country as a way to engage all stakeholders in the country to prevent disconnect between Nigerians and the government.

“Governance is about the welfare and wellbeing of the people and our policies would be geared towards alleviating people poverty. Nigerian Labour Congress (NLC) said it is going to join us again for negotiation and one of the issues to be discussed is actually the issue of minimum wage and the palliatives to cushion the effect of the new price hike.

“I can assure Nigerians that this democracy is for everybody and as a matter of fact, the reason we introduced the new price regime was because we felt that the other system was benefiting only a few. If some people less than 100,000 all over Nigeria could share N1trillion in 2015 for subsidy when 160million Nigerians could not get the product. At present, the product is now more expensive but at least t the suffering is reduced and the product is much available and we are going to use that money for general well-being,” he said.

Meanwhile, ex-militant leader, Chief Government Ekpemupolo alias Tompolo, has launched a a personal manhunt for members of the new militant group, Niger Delta Avenger (NDA).

A pointer to this direction was the arrest of two militants in a creek in Gbaramatu Kingdom last Friday night while trying to bomb an oil pipeline close to Oporoza, his community in Warri South West Local Government Area of Delta State.

Security sources disclosed exclusively to THISDAY that Tompolo personally supervised the arrest of the militants when he got wind of plans to burst some pipelines in his domain.

The ex-militant leader had last week decried the continuous siege on his Oporoza community and Gbaramatu kingdom in general by soldiers in search of members of the new militant group, Niger Delta Avengers.

He had described in an online statement that the continuous military siege on him and Gbaramatu kingdom was unfortunate.

“I wish to humbly express my disappointment and displeasure with the federal government and the Nigerian military on the continuous siege on me and Gbaramatu communities under the guise of looking for members of the nascent Niger Delta Avengers,” he said.

Tompolo said he was baffled that the military has refused to believe that he is not part of the Niger Delta Avengers and its activities as contained in his several media statements.

He said he was obviously a victim of circumstance in the unfolding scenario because of his case with the Economic and Financial Crimes Commission (EFCC), wondering how he could resort to destruction of oil facilities because of what he described as trumped-up charges against him by the commission when his lawyers were already challenging the faulty process of legal service on him.

To prove his innocence, THISDAY gathered the ex-warlord had an opportunity last Friday night when he heard about the presence of some militants planning to blast pipelines around his community.

Sources said Tompolo mobilised some of his boys and went after the hoodlums at about 10.30p.m. and caught the boys around some pipelines, apprehended two of them while others escaped in their speedboats.

“He is keeping the two suspects in his custody since then apparently to extract information that will lead to the arrest of others. I think he is doing that to show that he has no connection with the group,” the security source said.
Contacted for confirmation, the Media Consultant to Tompolo, Mr. Paul Bemenimibo, said he was not aware of the arrest but promised to contact his principal and get back to THISDAY.

He never did three hours after before filing this report but sources in a government undercover agency confirmed the arrest, saying they are monitoring the development as it unfolds.

However, the EFCC yesterday told a Federal High Court in Lagos how one of the companies belonging to a former Niger Delta militant, Government Ekpemupolo Niger Delta militant, Government Ekpemupolo was overpaid by the Nigerian Maritime Administration and Safety Agency (NIMASA) to the tune of N24billion.
An EFCC witness, Ahmed Ghali, said Global West Vessel Specialist Limited (GWVSL), owned by Tompolo, defrauded NIMASA by over N24billion for a security contract.

Testifying yesterday before Justice Ibrahim Buba, the witness (Ghali) told the court that the company belonging to Tompolo was paid using a fraudulent benchmark.

The witness said the company paid N700million to former NIMASA Director-General Patrick Akpobolokemi as kickbacks.
Tompolo, who is still at large, was charged with Akpobolokemi, GWVSL, Odimiri Electricals Limited, Kemi Engozu, Boloboere Property and Estate Limited, Rex Elem, Destre Consult Limited, Gregory Mbonu and Captain Warredi Enisuoh.
EFCC, in the 40-count charge before Justice Buba, said the suspects allegedly diverted N34 billion for personal use.
Led in evidence by EFCC prosecutor, Rotimi Oyedepo, the first prosecution witness (PW1) said NIMASA and Tompolo’s company entered into a public private partnership (PPP) agreement on April 3, 2012.

The agreement was for, among others, “improvement of security within the Nigeria maritime domain, improvement in data collection, improvement of cabotage and revenue generation enforcement, improvement of safety of life at sea and enhancement of search and rescue, improvement in pollution control and management leading to cleaner waters.”
The witness said the fraud began when a benchmark for sea protection levy was altered, adding that despite protests by a NIMASA director Victor Onwuzuruike, the alteration was approved by Akpobolokemi.

He said: “Based on this fraudulent benchmark which was not in line with the PPP agreement, Akpobolokemi approved payment of the total sum of N132,590,694.86 and $42,331,549.85 between 2012 and 2015 from the sea protection levy generated by NIMASA in favour of Global West.

“Investigation revealed that apart from the fraudulent payment of the sea protection to Global West, NIMASA under Akpobolokemi also compromised the benchmark stipulated in Schedule III of the agreement.

“In violent breach of the sacrosanct provision of the PPP agreement, Akpobolokemi on June 4, 2012 gave a verbal directive to the committee on benchmark to prepare another benchmark contrary to the agreement.

“NIMASA overpaid Global West with a whopping sum of N2,935,250,447.06 and $114,750,076.35 (about N22,863,952,712.74) between April 2012 and March 2015,” Ghali said.

According to him, Global West allegedly paid kickbacks to Akpolokemi through a company in which he is a director.
“Investigation revealed that on May 23, 2013, and August 20, 2013, Global West Vessel Services made payments in the sum of N200million and N500million respectively to Odimiri Electricals Limited’s account.

“The account was opened and operated by Akpobolokemi and Kime Engozu. Akpobolokemi consented to being a director of this company,” he said.
Justice Buba has adjourned trial till tuesday.

Jonathan : “I have made sacrifices for Nigeria, I Am Not In Exile

Former President Goodluck Jonathan on monday disputed the report  that he had opted to go on exile in Cote d’Ivoire, confirming, however, that he was indeed in the West African country, but was not in exile.

Speaking exclusively to THISDAY on monday, the former president confirmed that he had been out of the country for over a month, revealing that he travelled to some cities in the United States of America, then departed the country for London before arriving Cote d’Ivoire via Paris. 

However it was earlier reported that Jonathan had gone into exile following the resolve by the federal government to arrest him on allegations of corruption.

When reminded that all effort to reach him several times last week to verify allegations that he was in exile were to no avail, he said: “So what… I am not in exile. I am here resting.”

He added: “Yes I am in Cote d’Ivoire, I have been here for a week resting and this is my second trip to the country since I stepped down as president.”

He maintained however that he was not in exile because he had no reason to leave Nigeria as he had done his best for his country as president.

“I have made sacrifices for Nigeria. I am praised all over Africa for averting bloodshed and for the peaceful transition from one government to another, but it seems Nigeria does not appreciate my efforts.

“I have done my best for this country and if I have to die for it, I will do so. However, I am taking it easy here (Cote d’Ivoire) and when I am ready, I will come back,” he said.

The perception that the government was going to reel him in was linked to the heightened attacks on oil and gas installations in the Niger Delta.

Foreign airlines’ $575m trapped in Nigeria —IATA

The International Air Transport Association said that funds belonging to foreign airlines, which had been trapped in the country due to the Federal Government’s policy on foreign exchange, stood at $575m (N113.28bn) as of March this year.

The association also bemoaned the high taxes imposed on air travellers in Africa, with Nigeria identified as one of the countries where the taxes were above global standards.

The association, which represents over 260 airlines attending to 83 per cent of the global air traffic, made the disclosure at the IATA African Aviation Day programme in Abuja on Monday.

Speaking at the event, the Area Manager, South West Africa, IATA, Dr. Samson Fatokun, listed Nigeria and Venezuela as two countries with the highest amounts of trapped airlines’ funds in the world.

He said, to this end, IATA was engaging the Federal Government to ensure that issues around the trapped funds were resolved.

The opening session of the two-day programme, with the theme, ‘Driving African economies through the power of aviation,’ had in attendance senior government officials and industry leaders, including the Minister of State for Aviation, Senator Hadi Sirika; the Director-General, Nigerian Civil Aviation Authority, Captain Muhtar Usman; the Deputy Regional Director, International Civil Aviation Organisation, Mr. Gaoussou Konate; and the Secretary General, African Civil Aviation Commission, Ms. Iyabo Sosina.

Foreign airlines operating in the country have for months been having difficulties repatriating their revenues from ticket sales to their home countries due to forex restrictions by the Central Bank of Nigeria.

In his remarks, the Vice-President, IATA, Raphael Kuuchi, bemoaned the high taxes imposed on air travel in Africa, saying they were above global standards.

He noted that if not tackled, the phenomenon would continue to affect the growth of the industry negatively.

Kuuchi faulted the $60 charged per international passenger in addition to the $20 charged for security and taxes on aviation fuel in Nigeria.

Metuh admitted in hospital, lawyer tells court

The National Publicity Secretary of the Peoples Democratic Party, Mr. Olisa Metuh, was absent from his ongoing trial before a Federal High Court in Abuja on Tuesday.

Upon an inquiry by the trial judge, Justice Okon Abang, about Metuh’s whereabouts, his lawyer, Dr. Onyechi Ikpeazu (SAN), said the defendant was on a bed rest at the National Hospital, Abuja.

The Economic and Financial Crimes Commission is prosecuting Metuh and his company, Destra Investments Limited, on charges including fraudulent collection  of N400m from the Office of the National Security Adviser in November 2014 and using same for PDP’s presidential campaign.

Metuh and Destra Investments Limited are also being tried on charges of money laundering involving alleged cash transaction of $2m.

Justice Abang had on Monday adjourned till Tuesday for the continuation of the testimony of the fifth defence witness, Mr. Richard Ihediwa.

After intimating the judge on why Metuh was absent from court, Ikpeazu passed to the court registrar a medical report  signed by a neurosurgeon consultant in the hospital, Dr. O.O Olaleye, confirming that Metuh was in the hospital for a bed rest.

The lawyer, who sought an adjournment of the case, said the situation in section 352(4) of the Administration of Criminal Justice Act 2015, in which the judge is allowed to proceed with a criminal trial without the defendant present in court, had not arisen.

The provision of the law provides that the court may proceed with a criminal trial if a defendant already granted bail is absent from court in violation of a court order or in the absence any good reason for the absence of the defendant.

‎Destra’s lawyer, Tochukwu Nwugbufor (SAN), had supported the request for adjournment insisting that by virtue of the provisions of section 352(4) of the ACJ Act, the court could never proceed with the trial in Metuh’s absence.

Prosecuting counsel, Mr. Sylvanus Tahir, also did not oppose the application for adjournment but also referred the court to section 266(a) and (b) of the ACJ Act which makes it mandatory for a defendant to be present in court whenever his trial comes up.

The judge, in a ruling, which he delivered after entertaining the submission of parties to the case, noted that though Metuh had good reason to be absent from court, the medical report was unhelpful, as it failed to indicate the period which the bed rest would last.

The judge said the omission of the period for the bed rest in the medical report had left doubt to whether the report was issued in bad faith.

The judge conceded to the request for adjournment and fixed May 30 for continuation of trial.

Justice Abang also fixed Wednesday (tomorrow) for ruling on an application by Metuh seeking the release of his passport to enable him travel to the United Kingdom for medical treatment.

Burna Boy mum - says, we got no time for ladies who claims my son impregnant her

Early in the week, a young lady, Uju Stella, made claims that she is pregnant for popular singer, Burna Boy. Although the singer has said nothing about the issue, he posted a video on his Instagram page as he lip synced to a song in the background with the lyrics that he slept with the girl once but now she’s claiming that she is pregnant.

Many people believe that he was addressing the issue and he was also making jest of the young lady. However, in an exclusive chat with Saturday Beats, the singer’s mother said that she also read about the news on the internet but her son is more focused on his music career and would not dissipate energy on a lady that claims to be pregnant for him.

She said, “My son has never said anything concerning the issue, he has never said a word, maybe there was a song at the background of the video that he posted online but he has never said a word concerning the issue.  What you know is what we know basically and my take on it is that we would rather just focus on his music which primarily affects his life than that. In Africa, it is not a criminal offence for someone to be pregnant for somebody. If somebody says that she is pregnant for somebody and the person refuses to accept it, you look for his family instead of tagging a blogger. We have nothing to say to her. We don’t know anything about any child. She can never come to me, she has already gone to the blogger; she can never come to me.”

To buttress her point, she said that Burna Boy just released a new video during the week and it is enjoying massive airplay. She added that the Nigerian music industry is one in which ladies always accuse young men of being responsible for their pregnancies.

“It is not new; these girls come up from time to time with different claims.  My position on this is ‘no comment’. Anybody can claim anything that they want to claim. We have absolutely nothing to say, Burna Boy is a musician and we want to focus on his music. Nobody has time for her. We saw all the reports online but we just chose to look the other way. In this industry, girls are always coming up with pregnancy claims, we see it every day. We are not bothered and we have no comment. We just recently premiered a new video during the week and it is enjoying massive airplay. We are focusing on the music and nothing else,” she said.

FMBN, And Partners begin construction of 30,000 houses May 23, 2016

The Federal Mortgage Bank of Nigeria and its partner, Federal Housing Authority of Nigeria, have announced the commencement of the construction of 30,000 housing units across the country.

According to the FMBN, the N9bn project, which will employ about two million workers from all over the country, will commence this week in Lagos, Abuja, Kano and Port Harcourt.

Speaking at the headquarters of the FMBN during the inauguration of an inter-agency committee for the project on Friday, the Acting Managing Director/Chief Executive of the bank, Mr. Richard Esin, said the initiative was part of efforts aimed at meeting the Federal Government’s target of constructing one million housing units annually.

He said, “We’ve received a proposal from the FHA on areas that we can collaborate. One of the areas of collaboration has to do with the discounted disposal of existing FHA housing units. The second is about the financing of middle income public servant housing units through the Estate Development Loan scheme and low income housing needs product scheme.

“Lastly is the FMBN/FHA North-East special intervention for National Housing Fund contributors, which has to do with parts of the country that are seriously ravaged by insurgency.

“We have estimated that to implement some of these initiatives, we may require up to N9bn that will produce about 30,000 housing units and generate over two million jobs nationwide. So, it’s a laudable initiative.”