OFFICIAL CORRUPTION: NNPC cornered N2.1 trillion oil proceeds in two years – NEITI Report

Published:2 Feb, 2013

DiezaniIn a rather consistent trend, the 2009-2011 report of the oil and gas sector audit conducted by the Nigeria Extractive Industries Transparency Initiative (NEITI) has again revealed that the federation lost about N2.153 trillion to unwholesome activities of the Nigeria National Petroleum Corporation (NNPC).

The report released yesterday also showed that the federal government earned a total of $143.5 billion, about N22.24 trillion (at N155 to $1) from the oil and gas sector between 2009 and 2011.

A breakdown of the revenue lost to the activities of the NNPC as contained in the report showed that financial flows from the Nigeria Liquefied Natural Gas (NLNG), including  dividends and repayment of loans, of which $4.84 billion was received by the NNPC, was not remitted by the Corporation.

The report which was presented by NEITI chairman, Ledum Mitee, confirmed that the amounts had not been remitted either to the CBN/NNPC JP Morgan accounts or to the federation account.

It stated that “this has been a recurring issue as an amount of $3.996 billion was also reported as received but not remitted by NNPC in previous audits.”

The audit exercise, which commenced on March 1, 2012, also revealed that NNPC owed N1.305 trillion to the federation account as at December 31, 2011.

The report further accused the NNPC of continuing to short-change the federation through inaccurate conversion rate to the tune of N98.3 billion.

“The derived average conversion rate by NNPC differs from the annual average CBN rate and, therefore, results in apparent losses of N98.3 billion during the years under review,” it stated.

The audit, which was conducted by indigenous firm, Sada Idris & Co., also revealed that the NNPC still drew subsidy payments directly from domestic crude sales before remittances to the federation account, noting that, as a result, the sum of N1.40 trillion was claimed during the period by NNPC as oil subsidy payments.

This, it noted, clearly contradicts the practice where subsidy payments are claimed from the Petroleum Support Fund (PSF) through the Petroleum Products Pricing Regulatory Agency (PPPRA) by all qualified oil marketing companies.

According to the report, subsidy payments claimed by NNPC increased by 110 per cent within the period of review.

“It rose from N198 billion in 2009 to N416 billion in 2012. In 2011 alone, it rose to N786 billion. The increase between 2009 and 2011 alone was 186 per cent,” the report stated.

According to the NEITI review, the revenue that accrued to the federation from the oil sector within the period was mostly made up of proceeds from crude oil sales, royalty, signature bonus, concession rentals, gas flaring penalties as well as petroleum profit and companies income taxes.

A breakdown of the earnings showed that crude oil and gas sales within the period of review amounted to $81.9 billion, while a total of $45.7 billion accrued to the government from Petroleum Profit Tax (PPT), royalty, signature bonus, gas flaring penalties and concessional rentals.

Revenue from companies’ income tax, value added and withholding taxes within the period amounted to $6.1 billion while the sum of $4.8 billion was reported as revenue from dividends and repayment of loans by NLNG.

It was observed that the earnings represented a decrease of 4 per cent in total financial flows from what government earned within the same period of 2006 – 2008 due to adjustments in oil price.

“Unresolved differences between what government received and what companies claimed that they paid within the period was $68.4 million while the sum of $311.85 million, representing flows to the federation account, were claimed to have been paid by covered entities to the relevant accounts, but such payments were not confirmed to the CBN bank statements,” the report noted.

The covered entities were all major oil and gas companies, including Shell, Total, Agip, and Chevron, among others, as well as federal government agencies which either receive, regulate or manage revenue accruing from the oil and gas sector, such as CBN, FIRS, NNPC, DPR and the OAGF.

Mitee, however, disclosed that NECONDE Energy ltd, SEPTA Energy Ltd, Energia Ltd and Emerald Energy Resources refused to cooperate with NEITI and its auditors during the process, and gave assurance that NEITI would impose sanctions on the companies in accordance with the enabling Act.

Giving the report credibility, Mitee said: “Let me explain that, by the very nature of the NEITI process, all the companies and government agencies covered by the audit were actively involved at all stages, including the crucial stages of reconciliation and validation of data.

Therefore, this report being presented now is based on the audited account of the companies as well as information and data statutorily provided by relevant agencies through a designed template mutually agreed upon by NEITI and covered entities.”

Efforts to get reactions from the NNPC were unsuccessful as the acting spokesperson of the Corporation, Ms. Tumini Green, did not answer calls to her phone or respond to a text message sent to her.

 

via Leadership

Related Posts

Recent Posts

OPINION: Kogi State Governor Bello Going Astray – By Adewale Giwa

If Nigerians did not protest against the anti-social media law sponsored by Bala Ibn Na’allah, a member of the ruling All Progressives Congress from Kebbi State that made the Senate throw out the bill into the dustbin, Yahaya Bello, Kogi State governor, would have been one of Nigeria's toughest governors towards journalists. One would have thought that being the youngest governor in Nigeria, is his age pushing him presently to be going astray?     Bello was recently quoted in a broadcast...

FG Set to Launch Buhari Mobile App

Nigeria's Minister of Information, Alhaji Lai Mohammed, has stated that the accomplishments of the Muhammadu Buhari regime are under-reported. As a result, the federal government will launch a mobile app that will give a real time update about the achievements of the government, he said. He spoke on Thursday at a meeting with Resident Information Officers (RIOs) in the ministry on the forthcoming launch of the information dissemination App. "..government is doing so much, yet people keep saying they do not...

Nigerian Military Set To Reopen Key Borno Roads After 3 Years Of Closure

Borno State Governor Kashim Shettima announced on Thursday that the Nigerian military will reopen the Maiduguri-Magumeri-Gubio and Damasak roads, which have been closed for three years due to the Boko Haram scourge.   The governor made the announcement while meeting with Muhammad Dandano, governor the Diffa region in the Niger Republic. Diffa, like Borno, has...

Rivers Rerun: INEC, Security Agencies Meet With Political Parties

The Independent National Electoral Commission (INEC) and the various security agencies, as well as political party leaders and their candidates have met again in continuous efforts to ensure that Saturday’s rerun polls in Rivers state are hitch-free.   With the poll already generating tension, the Deputy Inspector General Of Police in Charge of Operations, Joshak Habila, said no group would be allowed to cause violence during the exercise.   Meanwhile, the Resident Electoral Commissioner in the state, Aniedi Ikoiwak, has equally given the...

Is Buhari Out Of Sync With Nigerians? – By Adewale Giwa

Many people believe that the emergence of the opposition All Progressives Party (APC) will find a lasting solution to Nigeria’s woes. But, as it is, people who are not parochial in analyzing issues could easily conclude that the present administration of President Muhammadu Buhari is not showing any positive sign in tackling the nation’s challenges. This opinion of mine might not go down well with APC supporters/sympathizers who are out there to deceive and defend the government despite...

Troops Destroy Armed Bandit’s Camps In Zamfara

Troops attached to 1 Division of the Nigerian Army have ramped up clearance operations against armed bandits and cattle rustlers in Zamafara State as part of Operation Sharan Daji.   According to a press release issued by Colonel Sani Usman on Thursday, troops killed 9 armed bandits and livestock rustlers within the past three days. They also destroyed the bandits' and rustlers' camps and motorcycles in Bungudu and Maru Local Government Areas.   The soldiers also arrested two suspected armed bandits: Awidi Mohammed and...

Ghanaian Voters Pick Nana Akufo-Addo, As New President – Media Reports

Nana Addo Dankwa Akufo-Addo, Presidential candidate of the opposition New Patriotic Party (NPP), has won Ghana’s presidential election, defeating incumbent President John Mahama in a hotly contested election according to result released by media outlets across the country.   Mr. Akufo-Addo party also triumphed over Mr. Mahama’s National Democratic Congress (NDC), in parliamentary elections that also took place throughout Ghana on Wednesday, December 7, 2016.   President Mahama’s bid for reelection was hurt by widespread voter disaffection with an economy that has...

Obanikoro in Fresh N450m Poll Cash Scandal

The Economic and Financial Crimes Commission on Wednesday quizzed a former Minister of State for Defence, Senator Musiliu Obanikoro, for allegedly receiving N450m from the Coordinator of the Goodluck Jonathan Campaign Organisation in Lagos State, Adewale Onilere, during the countdown to the 2015 presidential election. Operatives disclosed that the N450m was part of the N23bn ($115m) allegedly disbursed to the leaders of the Peoples Democratic Party in the 36 states of the federation by a former Minister of Petroleum...

Governor El-Rufai Denies Paying Herdsmen

Kaduna State Governor Nasir El-Rufai has denied paying Fulani herdsmen to instigate the Southern Kaduna crisis. His media aide Samuel Aruwan, at a news conference yesterday, reiterated that El-Rufai did not pay the herdsmen, to either appease or arm them, as widely reported in the media. The Senator representing Kaduna South, Danjuma La’ah, accused El-Rufai of paying the Fulani herdsmen for killing his constituents. According to Aruwan, El-Rufai has continued with the peace efforts of former Governor Patrick Yakowa, and will...

First US Somali Lawmaker Gets ‘Islamophobic Threats’ In Taxi

The first Somali-American lawmaker in the US has said she was subjected to "hateful" anti-Muslim threats from a taxi driver in Washington DC. Minnesota Representative-elect Ilhan Omar said the cabbie threatened to remove her hijab during a confrontation on Tuesday. The 34-year-old said the incident occurred just after she attended policy training at the White House. Ms Omar, a Democrat, came to the US as a child from a refugee camp in Kenya. She made history and national headlines last month when...

Reps seek suspension of ban on land border-imported cars

The House of Representatives yesterday urged President Muhammadu Buhari to suspend the ban on the importation of new and used cars through Nigeria’s land borders.   According to the lawmakers, the policy is too harsh and will put more pressure on Nigerians who are already groaning under the prevailing recession.   The decision followed the adoption of a motion by Abdullahi Salame (APC, Sokoto) who said the percentage of Nigerians who could afford cars had declined drastically. He explained that the decline...

Lebanon Takes First Step To Abolish Marriage Rape Law

Lebanese lawmakers on Wednesday took the first step to overturn a law that allows rapists to avoid punishment if they marry their victims. The move came a day after protesters wearing fake-blood-stained wedding gowns confronted lawmakers just steps away from Parliament in the capital Beirut. After a scheduled review of Article 522 of the penal code, Lebanese Prime Minister Saad Hariri tweeted that a parliamentary committee had agreed to push forward with a plan that would abolish...

The Obamas Looks Incredible in Their Final White House Christmas Card

According to tradition, the White House sends out a holiday card to friends, political supporters, and members of the media. This year's greeting is bittersweet because it will be the last one from President Barack Obama after eight years in office. The silver lining here is that the Obamas — well, they're just like us — and they're sending out a card featuring a photo of the fam. There's...

Senate Calls for NYSC Overhaul

The Senate on Thursday called on the Federal Government to overhaul the National Youth Service Corps Scheme. The call followed a motion of urgent public importance moved by the Chief Whip of the Senate, Olusola Adeyeye (APC Central). The Senate also called on the government to improve on medical facilities in all NYSC orientation camps across the country and deploy experienced medical personnel to the NYSC medical centres. The Senate therefore mandated its Committee on Sports and Youth Development to conduct...

Italy President Starts Talks Over New Government

Italy’s president has started talks with the political leaders of the country to form a new government following the resignation of Prime Minister Matteo Renzi. President Sergio Mattarella began consultations on Thursday to decide whether to appoint an interim prime minister until upcoming elections scheduled for 2018 or to assign the leadership of the country to an interim government, which should serve until a snap vote could be held in spring. Mattarella, a former constitutional court judge, began by consulting the...

Stop begging those who stole Nigeria’s money, fight them – Femi Falana

Femi Falana, human rights lawyer, has called on the federal government to adopt an “aggressive policy” to recover looted funds instead of asking for loans. Falana said this on the sidelines of an event organised by the US embassy in Abuja to mark the international anti-corruption day. “People have stolen our money, why are you begging them to return it? We need to fight them and collect the money; we do not need loans that will mortgage the future of our country,”...

Rihanna Slams Beyoncé Feud Rumors Over Grammy Nominations

The “Work” singer wants everyone to “drop this topic.” She dismisses the suggestion of her having a beef with Jay Z’s wife, adding, “We don’t need to be putting black women against each other! We deserve to be celebrated, and the Grammy Academy agrees!” Rihanna accidentally fuelled longstanding rumors of a feud between the women on Instagram yesterday after Grammy nominations were announced....

Kano commissioner arraigned for land ‘racketeering’.

Faruk Faruk, Kano state commissioner of lands, was on Thursday arraigned before a high court over alleged land racketeering.   Also arraigned were Mahmud Bari, a former permanent secretary of the ministry, and Ahmad Ibrahim, a director.   The public complaint and anti-corruption commission of the state charged the trio for criminal breach of trust, which is punishable under section 97 of the penal code.   The accused were said to have sold a plot of land to one Baba Sharu Dala in April. They...

National ID is the solution to underage voting — Muhammadu Buhari

The federal government has tasked the National Identity Management Commission (NIMC) ?to ensure that the national identification number is used to authenticate eligible voters in future. Vice President Yemi Osinbajo gave the charge while speaking at a policy round-table meeting on Identity Management organised by NIMC in collaboration with the World Bank at the state house conference? centre. The accusation of underage voting, particularly in the north, was one of the few sour points of the 2015 election, but the use of...

Senators move to legalize insertion of constituency projects into budgets

The senate on Thursday resolved to pass a bill seeking to give legitimacy to the inclusion of constituency projects in the federal budget.   Constituency projects, which have been a subject of controversy owing allegations of corruption, are carried out by federal legislators across their constituencies.   Abdulmumin Jibrin, a suspended member of the house of representatives, had raised the alarm over alleged illegal insertions of constituency projects in the 2016 budget.   But the upper legislative chamber now wants to make such “insertions” legal.   The...

Suspected Herdsmen Behead Graduate In Abuja

A graduate farmer, Ndubuisi Uzoma, has been beheaded in his farm at Iddo community on Nnamdi Azikiwe Int'l Airport Road, Abuja, by assailants suspected to be Fulani herdsmen. The headless corpse of the university graduate was found in the pool of his blood last Sunday by his relations, who went in search of him when he failed to return from the farm. The deceased’s elder sister, Chidimma Umeh, told Northern City News that Uzoma had complained that he was having issues...