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

#SaveMayowa Is Not A Scam – Family

The family of Mayowa Ahmed has denied claims its fund raiser to fly the University of Lagos graduate abroad for cancer surgery was not a scam. The family had raised $100,847 via crowdfunding site gofundme.com, backed by popular Nigerians, including actress Toyin Aimakhu. Additional donations, reportedly running into millions were also received via a bank account provided by her family. However, on Thursday, Blogger Linda Ikeji reported that...

Mikel Denies Donating $30,000 To Dream Team

Captain of Team Nigeria to the Rio Olympics, John Mikel Obi has denied media reports making the rounds in Nigeria that he gave $30,000 dollars to his teammates in the U23 football team. Speaking from the team’s camp at the Hyatt Place in Atlanta, USA, Mikel said, “I was first told of this unfortunate story by a friend who called me from Nigeria. I thought he was joking until he sent me the link. “I...

Rotimi Amaechi Challenges Nigerians To Hold Govt Accountable, Demand Answers

The Attorney-General of the Federation and Minister of Justice, Mr Abubakar Malami, has said that Nigeria has received a fresh boost in the fight against corruption.This came as the Minister of Transportation, Mr Rotimi Amaechi, challenged Nigerians to hold government accountable by asking relevant questions and demanding satisfactory answers. Malami made this known at a stakeholders meeting on the London summit on anti-corruption and the Open Government Partnership (OGP) in Abuja on Wednesday. He said the country...

FUTA Suspends Four Students Involved In Alleged N16m Internet Fraud

The Federal University of Technology Akure (FUTA) has indefinitely suspended four students of the institution, who were arrested by the Economic and Financial Crimes Commission (EFCC) for the roles they played in an alleged N16 million Internet fraud. Out of the five suspected undergraduate scammers that were arrested, 4 are from (FUTA) while 1 is from Adekunle Ajashin University, Akungba. They allegedly swindled unsuspecting foreigners and others to the tune of N16M by engaging in fraudulent activities...

Fix The Economy Now, Gowon Tells President Buhari

Former Head of state , General Yakubu Gowon (retd), yesterday, took a retrospective look at the situation in the country and asked President Muhammadu Buhari to ensure that the country’s economy regain its strength to alleviate the suffering of the masses. Gen. Gowon Gowon spoke at Ile-Ife at a programme, Health Caravan and Award ceremony for the Ooni of Ife, Oba Enitan Ogunwusi, who was conferred with the Royal Ambassador for Hepatitis Advocacy in Nigeria by the Seham...

Saraki, Akpabio, Daniel, Odili, Ladoja Included In AGF’s List For Fresh Probe, Trial

Senate President Bukola Saraki, factional Chairman of the Peoples Democratic Party, Ali Modu Sheriff; and Senate Minority Leader, Godswill Akpabio, are among 31 former governors whose alleged corruption cases investigated by the anti-graft agencies are likely to be reopened soon. The PUNCH had exclusively reported on Tuesday that the Attorney General of the Federation and Minister of Justice, Mr. Abubakar Malami, had written to the Chairman of the Independent Corrupt Practices and other related Offences Commission, directing the reopening of...

Photos From Requiem Mass For Former Super Eagles Coach, Stephen Keshi

The Funeral rites of former Super Eagles coach Stephen Keshi has commenced with a a requiem mass currently holding at the St Paul's Catholic Church in Benin City, Edo state. His children, family members, Football enthusiasts and others are attending the mass. More photos below...          

Woman Caught On CCTV Dumping Her Baby Just Two Hours After Giving Birth

20-year-old woman has been arrested for allegedly dumping her two-hour-old newborn baby inside a plastic bag and running away.  She abandoned her baby in a pink plastic bag that was later spotted by shocked locals in Wangjiaoqiao village, south-west China. The child whose gender was not revealed, was rushed to hospital by police for emergency treatment but did not survive. In an attempt to find her, Investigators...

Senegalese footballer, Demba Ba Returns Home After Undergoing Leg Surgery

Senegalese footballer Demba Ba has returned home after he had a surgery for his broken leg. Demba suffered a horrendous leg-break on Sunday July 17th during a match with his team, Shanghai Shenhua against bitter rivals Shanghai SIPG. Sharing this new photo on his IG page, Demba wrote   "Feels good to be back home after 10 days at the hospital. Thanks once again to everyone single one of you guys in every corner of the world . I feel...

Elle Magazine Features Omotola As One Of 50 Women Shaping Africa

Elle magazine SA in its August Edition featured 50 Outstanding women shaping the Continent and names them #TheIncredibles. In an Article put together by International writer Dimeji Alara, the careful selection was made from different works of life and ages, mostly for their leading positive influences on the continent. Also on the list are  Supermodel Liya kedebe, writer Chimamanda Adichie, Style House files MD Omoyemi Akerele, film director Mildred Okwo and many...

SHOCKING!! [Video] Pope Francis Falls Over During Mass In Front Of Worshippers

This is the moment Pope Francis fell over during Mass in front of a television audience of millions while visiting Poland's holiest site. The 79-year-old Pontiff stumbled at the altar and had to be helped to his feet as he celebrated a Mass at the at the Jasna Gora Monastery in the southern city of Czestochowa. He was at the monastery, home to an ancient Catholic icon believed to work miracles, ahead...

Fire Stunt Gone Bad During Nollywood Movie Filming, Actor Badly Burnt

A near death incident was averted on a Nollywood set recently when a promising actor, Ani Iyoho was badly burnt while playing a fire stunt on the set of a movie. An actor on set with Ani said while the actor was burning, the fire extinguisher on set did not work and Stanlee allegedly shocked everyone by continuing filming with the intention of adding the real fire incident to the film. Ani,...

Nigerian Arrested In India For Selling Bitter Kola As A Cure For Treating AIDS

According to the Hindu reports, A Nigerian man identified as Eleazar, was nabbed on Sunday alongside three accomplices for cheating a local resident at Naya Nagar, Mira Road, one Anil Mathur of nearly Rs. 23 lakh in an online scam. It was reported that they met on the social media and developed a friendship, after which, Eleazar offered Mathur a dealership in seeds that he claimed he used to produce expensive medicines in Nigeria The...

Buhari Approves Funds For Abuja Airport Runway

President Muhammadu Buhari has approved funds for the repair of the Nnamdi Azikwe International Airport, Abuja, runway. The Federal Government said the repair would be handled by local contractors after the conclusion of a bid process. The runway, which was designed and built in 1982 and expected to last for 20 years, is yet to witness any repair about 34 years after it was designed. Speaking in Abuja after an inspection of the runway,...

Man Eats Up A Big Basin Of Noodles After 48 Hours Of Incessant Work

They say this really happened in China. A Chinese firefighter ate up a whole pot of noodles after 48 hours of incessant firefighting in Lishui, east ?China?'s Zhejiang on Monday. More pics below...       

Asari Dokubo Loses Wife To Road Accident

Zainab Asari Dokubo, wife of Mujahid Asari Dokubo, founder of the Niger Delta People’s Volunteer Force (NDPVF), is dead.   She was reportedly involved in a motor accident while on her way to Ibadan, Oyo state capital, for a religious programme. Details of her death are still sketchy, but Rex Anighoro, spokesman of the NDPVF leader, confirmed the tragic incident.   “I have been at the mortuary all day. I saw so many dead bodies; some very young, some old,” he told TheCable.   “Life...

National Open University of Nigeria To Commence Scholarship Programme For IDPs

Prof. Abdalla Adamu, the Vice-Chancellor, National Open University of Nigeria (NOUN), has said that the university is working towards offering scholarships to 100 Internally Displaced Persons(IDPs) in the country. Adamu, who stated this at the 1st NOUN Distinguished Lecture on Wednesday in Abuja, said that the university was working in collaboration with a local bank on the initiative. He said that the institution had made its willingness to educate IDPs known to one of the leading banks...

Traffic Law Enforcement: 35 FRSC Officers Killed By Drivers

At least 35 regular marshals of the Federal Road Safety Corps, FRSC, have been killed by motorists on highways across the country in the past one year.   The Niger State Commander of the FRSC, Susan Ajenge, who made this disclosure on the floor of the Niger State House of Assembly, said the development occurred when the officers were trying to enforce simple safety regulations on the highways.   She said another staff recently knocked down by a driver while trying to clear...

Sokoto Government Arrests Racketeers Reselling Free Fertilisers.

Sokoto State Government says it is currently investigating some fertiliser racketeers, who were reportedly arrested in Sabon-Birni Local Government area of the State.   The state Commissioner of Agriculture, Alhaji Umaru Nagwari, made the disclosure at news briefing organised by the Ministry of Information in collaboration with the State Council of the Nigeria Union of Journalists (NUJ). He said that those arrested were involved in the fertiliser fraud, as they were buying and reselling the 9,000 metric tonnes of fertiliser bought...

Nigerian Man Divorces Wife Of 21 Years Because Of Her Horrible Cooking

A 46-year-old woman, Aisha, on Wednesday lost her 21-year-old marriage to her husband, Ashimiyu, over poor cooking. The petitioner, Ashimiyu, 54, approached the court and asked it to dissolve the marriage over his wife’s alleged poor cooking. “My wife does not know how to cook, her food was always tasteless. Anytime she cooks and I complain about it, she will tell me to cook myself.  I started cooking my food because if I had continued to...

“Don’t Use Military Action Against Niger Delta Avengers” – Governor Seriake Dickson

The governor of Bayelsa state, Seriake Dickson has revealed that he advised President Muhammadu Buhari not to employ any military operation against Niger Delta Avengers.   Addressing state house correspondents after meeting President Muhammadu Buhari in Abuja, Dickson said dialogue has a key role to play in restoring peace to the region.   He said: “The military solutions as I have always maintained is not the right option. We are hopeful that the ongoing discussions will yield the desired result,” he said.   “I...