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Tag: NNPC

  • No plans to sell NLNG – Kachikwu

    Reps query $1. 15bn variation of NNPC JV Contracts

    The federal government has denied that there are plans to sell the Nigerian Liquified Natural Gas Limited, NLNG.

    This fact came to light on Tuesday as  the Minister of State for Petroleum Resources, Ibe Kachikwu debunked the allegation during an investigative hearing on  three motions by the Fred Agbedi- headed House of Representatives committee on Gas Resources and Allied Matters.

    “We are not aware of any plans to sell LNLG by the federal government.” Kachikwu said Tuesday at the hearing which amongst other issues was addressing the “Need to stop the sale of the Nigerian Liquified Natural Gas Limited.”

    The minister was represented by Mrs. Esther Ifejika, director Gas Resources. The Director was emphatic when she was questioned by the committee members on the alleged plan to sell the NLNG.

    However, Ifejika who said the presentation of the Ministry and the Nigerian National Petroleum Corporation were harmonized could not proceed further at the hearing as the committee discovered glaring discrepancies in the documents of the Ministry and that of NNPC presented by Bello Rabiu, Chief Operating Officer, Upstream who represented the Group Managing Director, Baru Maikanti.

    The committee also said the two documents submitted were not authenticated as they were not signed.

    The rep of the GMD noted that the document may be different but the figures are the same, but that they could take it back for authentication.

    However, the lawmakers queried the Nigerian National Petroleum Corporation and the Ministry of Petroleum Resources over some staggering increases in the upgrade contract of OML 58 and the execution of the Northern Option pipeline.

    It was learnt that the NNPC entered into a JV with Total Exploration and Production Nigeria Limited ( TEPNG) and there was a Modified Carry Agreement and award to TEPNG to execute the OML 58 Upgrade 1 in 2008, Obite- Ubeta- Rumuji ( OUR) pipeline in 2010, and the Northern Option Pipeline in 2011.

    Read Also: Senate probes Kachikwu over alleged oil/ gas sector deals

    But Rabiu in defence of the NNPC told the lawmakers that no money had been paid on the variations.

    TOTAL E&P who handled the JV contract said the initial contract sum was $ 3.45 billion but was eventually increased to $4.6 billion after consideration of a number of factors.

    But members of the Fred Agbedi- headed committee were not happy over the huge variation in the contracts totaling over $1.15 billion.

    Patrick Olinma, Executive Director, Asset management and New energies, who represented the Managing Director of Total said it had made submissions on all the issues raised and that  the documents have been submitted to the committee

    However, the committee members posited that the reason for the variations was because the contractor engaged by Total was incompetent resulting in the extra cost. According to the members, the allegation was made by the NNPC and yet Total went on to engage the contractors.

    But the Total representative said that they had a duty to comply with the local content act, adding that they were initially told by the government there were 14 communities which ended up at 74 communities eventually.

    The chairman of the committee said though the parliament made the law, it did not say that the contractor should be employed “as a learning curve,” adding that the cost is too staggering.

    The committee said it would like to see the boards resolution on the contracts before it was awarded to ensure they comply with procurement laws.

    Sunday Katung, (PDP Kaduna) who moved the motion to investigate the contract said the JV contracts, attracted a variance beyond the projected budget sums.

    “I deemed it expedient to draw the attention of this house to these projects to ascertain wether of all the change orders presented to the NNPC and / NAPIMS, there were any approval for these requests since monies have been paid and further, wether there is value for money spent on those projects.”

  • Oil sector reform has made more money available to government – APC

    The All Progressives Congress (APC) has said that the reforms in the nation’s oil sector has made more money available for government to address the social and infrastructural needs of the country while encouraging increased private sector participation in the sector.

    Reacting to allegations made by the main opposition, Acting National Publicity Secretary, Yekini Nabena said the reform in the sector is a clear indication that the President Muhammadu Buhari administration has not copied the corrupt template past PDP-led administrations used to criminally siphon oil revenues.

    He said “The oil sector reforms has provided government more revenue to address social and infrastructural needs of the country; is curbing the perennial fuel scarcities; increased private sector participation and resulted remarkable investments in both Refineries and Retails. The country is now poised to achieve self-sufficiency in terms of refining petroleum.”

    The statement said that the issues being raised by the opposition include “Leaked memo detailing alleged underhand oil contracts to the tune of N9 trillion at the NNPC and the Ministry of Petroleum Resources, which are under the direct supervision of Mr President.

    “The subject of a leaked memo purportedly written by the Minister of State for Petroleum Resources to the President which came to the fore sometime in October 2017 has since been overtaken by events. It is a matter of public knowledge that the author of the memo openly proclaimed that the issues raised in the letter were not on fraud, but on governance and suggested ways to go about it.”

    Nabena quoted the Minister as saying “I think a lot of people got it wrong. People dwell much on issues of sensationalism and leave the main substance.”

    He said further that “it was clearly stated then by the NNPC in response to the leaked document that apart from the 618km Ajaokuta-Kaduna-Kano (AKK) gas pipeline project and the Nigerian Petroleum Development Corporation (NPDC) production service contracts: All the other transactions mentioned in the memo were not procurement contracts. The NPDC production service contracts have undergone due process, while the AKK contract had not reached the stage of contract award”.

    Read Also: PDP suffering from selective amnesia, says APC

    According to the APC spokesman, the NNPC also stated then that: “It should be noted that for both the Crude Term Contract and the Direct Sale and Direct Purchase (DSDP) agreements, there are no specific values attached to each transaction to warrant the values of $10billion and $5billion respectively placed on them in the leaked document”.

    In view of the explanation offered by the corporation, Nabena said it was inappropriate to attach arbitrary values to the shortlists with the aim of classifying the transactions as contracts when they are merely the short listing of prospective off-takers of crude oil and suppliers of petroleum products under agreed terms.

    On the allegation of diversion of crude oil worth N1.1tr, using 18 unregistered companies, he said “It also in the public domain that within the last three years, there have been massive and verifiable reforms in the sales, marketing and general management of the various grades of Nigeria’s equity crude oil.

    “The reforms have manifested in the now popular public opening of bids for the sales and purchase of Nigerian crude grades in what is known as annual crude term contract.

    “As at last check, the Crude Oil Marketing Division (COMD) of the NNPC had achieved 98 per cent automation of all transactions involving the supply, marketing and sale of the various grades and blends of Nigeria’s crude oil across the world.

    “The automation has also helped in the following: enabled the open bid process of customer selection for lifting and purchase of Nigeria’s crude oil grades, emplacement of efficient crude for product import processes, leading to savings of $1 billion in one year as well as the introduction of improved pricing system, which has evolved into a robust and auditable pricing mechanism.

    “Based on what we have today, the NNPC COMD is enabled to achieve an end-to-end monitoring of every barrel of crude oil sold in the country. At a click of a button, the NNPC can tell you how much crude oil is sold, at what price, who bought it and where it has gone to etc. It is therefore inconceivable that the PDP or anybody could ascribe such patently bogus transaction to NNPC.”

    On the alleged billions of unremitted revenue from sale of crude which has led to deadlock at the Federal Accounts Allocation Committee (FAAC) severally, especially the last deadlock which was largely triggered by the contentious June 2018 monthly Federation Account Allocation Committee (FAAC) meeting, he said “it is imperative to state that current NNPC Management assumed office a few years ago with a clear mandate to promote accountability and ensure efficiency in the running of the affairs of the Corporation.

    “The remittances to the Federation Account have never been flat as asserted. While the provision of the Medium Term Expenditure Framework (MTEF) were based on plans on the assumption of 2.3 million barrels/day (industry wide) and $50 crude oil price, actual production has averaged 1.9 million barrels/day (industry wide) and the average crude oil price has fluctuated between $50-$70.

    “Therefore remittances to the Federation Account have been based on actual monthly performance for crude oil production and price as dictated by international market forces.

    “The Corporation during the FAAC meeting presents relevant data to support amounts remitted to the Federation Account which is verifiable. This increase in price was the major reason for NNPC remittance to the Federation Account in June 2018 despite 400,000 barrels/day below projected production for the month.

    “To conclude, going by the current oil sector reforms, it is clear that the President Muhammadu Buhari administration has not copied the corrupt template past PDP-led administrations used to criminally siphon oil revenues.

    “The oil sector reforms has provided government more revenue to address social and infrastructural needs of the country; is curbing the perennial fuel scarcities; increased private sector participation and resulted remarkable investments in both Refineries and Retails. The country is now poised to achieve self-sufficiency in terms of refining petroleum.”

  • NNPC  to go public?

    •This is too good to be true 

    That will be the day, we exclaim in exhilaration! In fact we wager that that could be the best thing to happen to the Nigerian Stock Exchange (NSE) and Nigeria’s economy generally. We speak of the news that the Nigerian National Petroleum Corporation (NNPC) would be listed on the NSE.

    Speaking last week at a conference in Lagos, the Group Managing Director of  NNPC, Mr. Maikanti Baru, said no less than 40 per cent of the worth of Nigeria’s oil and gas behemoth would be taken public. This is, however, dependent on presidential assent to the Petroleum Industry Governance Bill (PIGB).

    According to Baru: “The PIGB is focused on key governing institutions in Nigeria’s oil and gas industry and aims to separate the regulatory, policy and commercial roles of public sector agencies and allocate respective roles to each agency properly positioned to perform them.”

    The Bill, upon enactment, provides for immediate incorporation of two entities carved out of the NNPC. These are the Nigerian Petroleum Assets Management Company (NPAMC) and the Nigerian Petroleum Company (NPC) as companies to be vested with some assets and liabilities of the NNPC and to be limited by shares.

    The NPC, for instance, shall be a fully commercialised integrated oil and gas company operating across the entire value chain. According to report, it shall be responsible for all assets currently held by the NNPC except the production sharing contracts (PSCs).  While the initial shares shall be held by the Ministry of Petroleum Incorporated; Ministry of Finance Incorporated and the Bureau for Public Enterprise, however, tranches of the shares totalling not more than 40 per cent would be floated on the NSE over a period of about 10 years.

    We think this is one of the most cheery news coming out of the NNPC and therefore urge the president to give assent to the PIGB pronto. The benefits of this singular move are too numerous to be enumerated here.

    But most notable is that NNPC would finally begin to lose its odious identity as Nigeria’s behemoth of corruption. In the last three decades or so, Nigeria’s oil giant has degenerated into perhaps one of the most opaque and distorted business entities in the world; not to mention being cripplingly inefficient.

    In recent years, NNPC has become a sluice way for ruling party slush funds and the playground of the presidency which seems to have unfettered access to its treasury. And currently, governors of the 36 states of the federation have kicked against NNPC’s remittances into the Federation Account, insisting that the corporation finagled with its accounts thereby short-changing them. For about a month, they would not touch the declared sum in the account until NNPC has shown them record of transactions. But the record is kept secret as if it were a family business.

    Such is the state of putrescence that has become pervasive and instituted in the NNPC that it matters little which government is in power. Apart from the fact that it has failed woefully to live up to its lofty mandates like its counterparts in Algeria, Brazil and Saudi Arabia, it is unable to render annual accounts of its operations and finances as required of it by law while its budget is probably the best kept secret in the land.

    Though we, like many Nigerians, do not trust that anything noble could emanate from the NNPC, we encourage it to do well to redeem some image for itself this time. We do not understand why it would take an entire decade to float 40% of a commercialised public corporation on the Exchange, yet the thought of going public is most salutary.

    Reasons: Nigerians would participate as shareholders and derive direct benefits from the national patrimony; the new firms would render account and operate under some modern corporate governance strictures. And lastly, Nigeria may begin to get full value for her most important asset.

    Let’s go to the market, please.

  • CAF team inspect Enyimba stadium ahead of international competitions

    A delegation from the Confederation of African Football (CAF) ]have visited Aba, the commercial nerve of Abia State where they inspected the readiness of the newly installed artificial turf and other facilities at the refurbished Enyimba International Football Club’s Stadium as the club sets to play its remaining CAF and other league games at their home ground.

    Recall that for about two years, Enyimba Int’l FC have been playing their local and international competitions outside their home turf due to the ongoing repair work being carried out by the state government at the stadium, but with the completion of work, it is expected that the Aba darling team would return to enjoy the support of the fans who have missed them over the years.

    Since the state announced the completion of work in the stadium, Aba residents and Enyimba supporters are expecting that the city would host the last Group-C match of the CAF Confederation Cup between Enyimba and CARA Brazzaville of Congo scheduled for Wednesday 29th August 24, 2018.

    Speaking to newsmen after the inspection, the Chairman of Enyimba, Felix Anyasi Agwu said he is delighted with what that is already in place and stressed that he is hopeful that CAF will give their approval as according to him, it is difficult for anyone not to be impressed with the facilities already in place at the stadium.

    He said: “It is difficult for me to really define what their true assessment should be. I believe the inspectors from CAF are impressed with work done so far. They will report it to CAF and it will be left for CAF to have the final say. I don’t know what they will write in their reports or what is in their minds in terms of their true impression. Be that as it may, I think it is difficult for anyone to come here without been impressed with the facilities here.

    “So, in my opinion I think they have seen the level of work, they will write their reports and we have to wait for that we shouldn’t be in a hurry for that. We will keep praying that CAF will give us their final approval for that particular match that we want to play here in few days time. All the facilities are ready. All we are doing as they have seen is putting finishing touches on things. They have seen it all and they know that if they give us approval, the match next week will be played here.

    Read Also: Enyimba set for return to Aba Stadium

    “Between today and tomorrow almost all the areas would have being in place. They went through a lot today. They have seen the dressing room, the toilet, the doping room, match commissioner’s room, the media stand, the referees’ room, and the flood lights which they said they want to make sure they are on obviously in that area work is still on there and they saw the engineers working on it.

    “Aside the world standard pitch, other facilities must be available and to some extent, I can say it is 98 percent ready and if something is ready at that percent and you still have time to get it at the required 100 percent then, it must be done because it must be 100 percent ready.

    “Everything that is needed was painstakingly looked at.  I cannot speak for CAF because I am not CAF, but I am hopeful, this is our stadium and I will always that we are encouraged by CAF since we have come so far. The inspector just left now and we are hoping by tomorrow we might get some answers from CAF. Enyimba will play its match on the 29th. This is a CAF competition and the dates have never changed.

    “The government has done a lot here and the opening of the stadium is left is their hands, but to me the real opening in football sense is if we get approval to play the match on Wednesday. That does not take away any other plan from the government who are the custodian.”

    Meanwhile, Aba fans would on Sunday (tomorrow) have the opportunity to watch Ex- ENYIMBA FC players play against Ex-Super Eagles players at the stadium.

    According to sources, stars like Bob Osim, Emeka Nwana (Ayaya), Ogbonaya Okemiri, Obinna Nwaneri, Ndidi Anumudu, Uga Opara, Chidozie Johnson, Muri Ogunbiyi and among other Enyimba players are expected to play against ex super eagles team that would comprise of Pastor Taribo West, Ike Shorumu, Victor Agali, Victor Ikpeba, Uche Okechukwu (Gentle Giant), Daniel Amokachi (The Bull), Samson Siasia, Mutiu Adepoju

  • NNPC’ to list 40% of shares on NSE

    The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, has said 40 per cent of the shares of the Corporation would be floated on the Nigerian Stock Exchange (NSE) when the Petroleum Industry Governance Bill (PIGB) gets  Presidential Assent.

    Baru spoke yesterday in Lagos at the 2018 annual conference of the Association of Energy Correspondents of Nigeria (NAEC). In his keynote address titled: “PIGB: Emerging Issues and Concerns,” he highlighted the key thrusts of the PIGB including making the national oil company commercially driven hence the need to raise money from the stock market.

    Represented by the Group General Manager, National Petroleum Investment Management Services (NAPIMS), Mr. Rowland Ewubare, the GMD said: “The PIGB is focused on the key governing institutions in Nigeria’s oil and gas industry and aims to separate the Regulatory, Policy and Commercial roles of public sector agencies and allocate respective roles to agency to properly positioned to perform them.

    “For the NNPC, the PIGB requires the minister to within six months after its enactment, take such steps as are necessary under the Companies and Allied Matters Act (CAMA) to incorporate the two entities – the Nigerian Petroleum Assets Management Company (NPAMC) and the Nigerian Petroleum Company (NPC) as companies limited by shares which will be vested with certain liabilities and assets of the NNPC.

    “The NPC shall be an integrated oil and gas company operating as a fully commercial entity across the value chain. Essentially, it shall be responsible for all assets currently held by NNPC except the production sharing contracts (PSCs). The NPC shall be a limited liability company registered under CAMA.

    The initial shares shall be held by the Ministry of Petroleum Incorporated (40 per cent), the Ministry of Finance Incorporated (40 per cent) and the Bureau of Public Enterprises (20 per cent). However, 10 per cent and an additional 30 per cent of the shares of the company shall be floated on the Nigerian Stock Exchange between five years and 10 years from incorporation respectively.”

    for the significant cash call build up.

    Baru said the power of issuance, modification, amendment, extension, suspension, review, cancellation and reissuance, revocation and/or termination of award licenses/leases has been transferred to the commission in line with the new global trend, adding the PIGB has provided a legal framework and expanded role for the Department of Petroleum Resources.

    Also the Chairman of the conference, Deputy Managing Director, Deepwater District, Total E&P Nigeria limited, Mr. Ahmadu-Kida Musa, assured that the company will by the last quarter of this year add 200,000 barrels of oil per day to the nation’s oil production.

     

  • NNPC: contractors for AKK pipeline

    THE Nigerian National Petroleum Corporation (NNPC) has said the execution of the Ajaokuta-Kaduna-Kano gas pipeline project is progressing under the original concept of 100 per cent contractor financing model.

    The NNPC in response to some media reports of a possible resort to ‘proceed of gas tariffs’ as new means of funding because of purported collapse of negotiation with Chinese lenders, said the contractor finance arrangement is still intact, noting that the engineering, procurement and construction (EPC) contractors and possible lenders are in Dubai to discuss the financing terms.

    Its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, said the application of revenue generated from the tariff is purely for loan repayment since the project financing is ‘contractor finance.’

    “We wish to further clarify that part of the approvals obtained from the Federal Government is to fund the implementation of the project front-end activities tagged “Early Works” in order to  continue to move the project forward pending the conclusion of the financing negotiations,” the Corporation said.

    NNPC further noted that the amount spent for the early works shall be recovered immediately the loans disbursement starts and no part of tariff shall be spent on the project until the end of the loan moratorium period.

    The Corporation restated its commitment to actualizing the AKK project as approved and in line with the Federal Government’s desire to improve the supply of gas nationwide, thereby enhancing power generation, economic growth and employment.

  • Seplat, NNPC strike joint ownership deal

    Seplat Petroleum Development Company (Seplat) Plc and the Nigerian National Petroleum Corporation (NNPC) yesterday signed joint ownership agreement in a joint venture floated to process gas production from upstream assets.

    Seplat, Nigerian indigenous upstream oil company which is listed on both the Nigeria Stock Exchange (NSE) and London Stock Exchange (LSE), signed the shareholder agreement and share subscription agreement with the Nigerian Gas Processing and Transportation Company (NGPTC), a wholly owned subsidiary of NNPC.

    Under the deal, NGPTC will subscribe for 50 per cent of the shares in ANOH Gas Processing Company Limited (AGPC), a company that was incorporated in 2017, for the purpose of processing future wet gas production from the upstream unitised gas fields at OML 53 & OML 21, which is operated by Shell.

    The signed shareholder agreement will govern Seplat’s and NGPTC’s respective interests in the AGPC incorporated joint venture. Other commercial agreements with NNPC and the Nigerian Gas Marketing Company (NGMC) were also executed during the signing ceremony held at NNPC headquarters in Abuja yesterday.

    Yesterday’s agreements were important precursors to the Final Investment Decision (FID) for the ANOH project which is expected in the fourth quarter of 2018.

    Chief Executive Officer, Seplat Petroleum Development Company (Seplat) Plc, Mr. Austin Avuru, noted that ANOH is one of the largest greenfield gas and condensate developments in Nigeria, which will supply much needed gas volumes to the growing domestic market.

    “We are delighted to have entered into an incorporated joint venture with our government partner NGPTC. The execution of the agreements today is an important step as we head towards taking FID on the ANOH project later this year,” Avuru said.

     

  • ‘NNPC responsible for low federal allocation’

    The Bayelsa State government yesterday blamed the Nigeria National Petroleum Corporation (NNPC) for dwindling federal allocations to states.

    The government said despite all progressive economic indices, revenue accruing to states continue to reduce instead of improving.

    Deputy Governor Rear Admiral John Jonah insisted there was no reason why the allocation should not improve.

    Jonah spoke while presenting the income and expenditure profile of the state for une and July at the Government House, Yenagoa.

    The deputy governor said states were worried that while every analysis showed improvement in revenue generation, the NNPC continued to present a position contrary to the Governors’ Forum’s with regard to remittances.

    Jonah observed that crude oil exploitation improved following reduction in militancy in the Niger Delta just as the naira was devalued by 100 per cent, which ought to have resulted in improved federal allocation.

    Jonah said:  “So, even if you are not increasing, the thinking of the Governors’ Forum is that as long as you have devalued, you can compensate for the loss of crude oil exported. Now the oil increased, we are always the victim. Niger Delta violence, but now they are out there enjoying, having a field day. Nobody disturbs.

    “Why should money be reducing while all the variables you can identify are very favourable and increasing. Till now, as far as I am concerned, they have not given us an answer.”

    The deputy governor said since Nigerians started criticising the subsidy payment, NNPC changed the name.

    He said the NNPC claimed Nigeria consumed 60 million litres of petrol per day while the Department of Petroleum Resources (DPR) said 36 million litres were being consumed per day.

    But he noted the NNPC paid subsidy on 60 million litres, adding that on the issue of smuggling, the entire border filling stations had a capacity of four million litres.

    He argued that even if Nigeria was supplying neighbouring countries, it could not be up to 10 million litres.

    “The Nigeria Customs said  that we we are consuming 38 per cent. Of course they pay subsidy on something that does not exist. As far as Governors’ Forum is concerned, they are paying subsidy and they pay it from Excess Crude Account. These are the things that make our 13 per cent go down.

    “We want to urge people to investigate the figures put out by the NNPC as they are not ghosts.”

    He faulted people who said Niger Delta states had so much money without finding out what accrues to other states and councils.

    Jonah said the NNPC could not answer questions raised by the Governor’s Forum, the Customs and the DPR on petrol consumption figure.

    The deputy governor said as a result, the state has to make do with the balance of N4.14 billion for June and July.

  • ‘Shell, NNPC still negotiating $10b Bonga field contract’

    Royal Dutch Shell and its partners will decide next year on whether to go ahead with the development of Nigeria’s Bonga Southwest offshore oilfield, it was gathered yesterday.

    Managing Director, Shell Nigeria Exploration and Production Company, Bayo Ojuli, told reporters that the project, one of the country’s largest with an expected production of 180,000 barrels per day, will generate profit at below $50 a barrel.

    He said Shell is currently negotiating a production sharing contract (PSC) with the Federal Government, through the Nigerian National Petroleum Corporation (NNPC) which will determine the viability of the project. The negotiations are expected to be concluded this year.

    Shell operates the project and ExxonMobil, Total, Eni and the Nigerian National Petroleum Company are partners.

    The Minister of State for Petroleum, Dr. Ibe Kachikwu, was said to have directed NNPC and Shell Nigeria Exploration and Production Company (SNEPCo) to commence the tendering process for the execution of the deepwater project.

    The report said Kachikwu’s directive followed the April 17, 2018 meeting between President Muhammadu Buhari and a delegation from Royal Dutch Shell Plc., led by its Chief Executive Officer, Bern Van Beurden, in London. A decision was said to have been reached the implementation of projects be started.

    The London meeting, which was facilitated by Kachikwu, also had in attendance the Group Managing Director of the NNPC, Dr. Maikanti Baru.

    The meeting was said to have presented an opportunity to open investment talks of up to $15 billion to be invested by Shell in Nigeria.

    First oil from the project, which is expected to add 225,000 barrels per day of crude oil to Nigeria’s daily production, is expected in 2021 or 2022.

    Other key projects that have also suffered delays in the industry include: the 120,000bpd Shell and Eni’s Zabazaba/Etan project in the disputed Oil Prospecting Lease (OPL) 245, ExxonMobil’s 140,000bpd Bosi project, ExxonMobil’s 110,000bpd Uge project and Chevron’s 100,000bpd Nsiko deepwater project.

    The delays in the execution of these projects, which are estimated to cost about $23 billion, are largely caused by the lack of clarity of terms as a result of the non-passage of the 18-year-old Petroleum Industry Bill (PIB), and inadequate funding.

    However, following the meeting between the president and the Shell executives, Kachikwu directed the NNPC to conclude all the processes leading to the execution of the Bonga South West project latest by Monday, June 18.

     

     

     

  • NNPC, DPR must explain zero revenue remittance, says Auditor-General

    THE Nigerian National Petroleum Corporation (NNPC) and the Department of Petroleum Resources (DPR) have cases to answer over non-remittance of revenues to the Federation Account for several months, a new report  has shown.

    The Auditor-General of the Federation, Mr. Anthony Ayine, in his Annual Audit Report for 2016, said it was observed from the Central Bank of Nigeria (CBN) Components Statements that no collections were reported into the Federation Revenue Account by some revenue collecting agencies for certain months of the year. It was not clear from available records why these months recorded zero revenue collections and no explanation was provided for this.

    “The Accountant-General has been requested to obtain an explanation from the Group Managing Director of NNPC and Director, DPR for the non-collection of revenue during these relevant months and ensure that any revenue found due for these months is remitted to the Federation Account, and evidence forwarded for audit verification,” he said.

    Ayine added that another abuse of financial regulation of the 2016 budget was found in the illegal movement of monies from two dedicated funds to purposes other than for the mandates of the funds.

    He said the money were moved from the Stabilisation Account for states and the Federal Government by the Presidency for the establishment of an Army Barracks and another sum as investment in the Sovereign Wealth Fund.

    The two acts, according to him, aside not being tidy on framework of recovery, they are illegal as another case of lending out the Ecological Funds meant to strictly check ecological challenges without records to track recovery.

    “From available records, a total of N17,108,583,681.78 accrued from the Federation Account into 0.5 per cent Stabilisation Fund from January – December 2016.

    “During the examination of Central Bank statements for the year, we observed that the sum of N2,812,694,928.36 was released to the Nigerian Sovereign Investment Authority (NSIA), and N14,374,728,817.20 to the Federal Ministry of Defense from the Stabilisation Fund.

    “The Accountant-General has been requested to: Provide the authority for the Funds Invested, tenor of the investment, rate of interest payable, certificate for the funds invested and forward same for audit verification; Explain the utilisation of N14,374,728,817.20 for the purpose of funding a new division contrary to the purpose for which the Fund was created; Provide evidence of refund of this sum of N17,187,423,745.56 back to the Stabilisation Fund,” the report said.