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Senate Probes Oil Subsidy Funds Management

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The Nigerian Senate has  commenced an investigation into the management  of the oil subsidy funds by the Nigerian National Petroleum Corporation, NNPC and  an alleged   overshooting oil subsidy funds from N240 billion as appropriated in the 2011 budget  to N1.5 trillion.

The Senate has also  indicated its readiness to bare its mind over the  proposed removal of fuel subsidy by President Goodluck Jonathan.

These were fall-outs from heated debates on  a motion sponsored by former chairman of Nigeria Governors Forum, and also  presidential aspirant  in the 2011 PDP Presidential primaries, Senator Bukola Saraki and 14 others.

But while the senators were unanimous on the probe, the proposed removal of fuel subsidy by President Goodluck Jonathan has pitched the senators against one another.

Senator Saraki while moving the motion raised an alarm over the outrageous overshooting on the allocations for the oil subsidy funds as contained in the national budget and an alleged  lack of transparency in the operations of the fund by the NNPC and the Ministry of Finance.

His words, “In furtherance to the implementation of the fuel subsidy in 2011 appropriation, the sum N240billion (N20 billion monthly) is budgeted. Of the N20 billion monthly allocated, N11.2billion was allocated for domestic fuel subsidy (NNPC) and N8.8 billion for domestic subsidy (market) as stated in the Appropriation Act 2011.

“Although, N20billion was set aside for subsidy on a monthly basis in the Appropriation Act 2011, in August 2011, the total figure expended was N165bn of which the NNPC was N88 billion and independent marketers was N77.7 billion.

“In the first three months of the year, both the NNPC and the independent marketers did not exceed N62billion monthly but within the last three months, figures have ranged between N150 billion and N186 billion.

“With this trend, by the year-end, we will have a fuel subsidy bill of over N1.2 trillion as against the N240 billion budgeted in the Appropriation Act. The implementation of 2011 Appropriation Act will surely be in troubled waters if a variation of N1.2 trillion arises as a result of the level of expenditure incurred on fuel subsidy so far.”

Senators in their contributions on the floor were however divided over the need for the  proposed removal of oil subsidy even as the senate still hopes to look into the issue at a more appropriate time probably after the committees investigation and report on the management of the  said funds.

While some  senators especially those from the South-East and South-South back   the removal  on the ground that the funds had not in any positive way impacted on their constituents some other senators expressed their reservations on the issue as they insisted that the removal would bring untold hardship on the masses as every price of every commodity and service will  be affected at the long run.

According to the  President of the Senate, David Mark  cartels in the oil  and gas industry   are the brains behind the controversies and secrecy surrounding fuel subsidy while he expressed optimism that the  Senate will thoroughly investigate the issues raised.

His words, “my belief is that there is a cartel within the petroleum industry and whatever they do is just exclusive to them. 90 percent of people outside do not know. We must find out how much is spent on subsidy, who are the beneficiaries? Has subsidy benefited us, this are salient points and we cannot run away from them.”

The Senate committees on Petroleum (upstream), Finance and Appropriation were mandated to investigate the allegations and report to the Senate.

The significance of the debate on the motion attracted personalities like the Rivers state Governor Chibuike Amaechi who watched the plenary at the gallery and later had a word with  the sponsor of the motion , Senator Saraki, former Chairman of the Governors’ Forum.

Nneka Amaechi-Nnadi, Abuja

Chief of  Air Staff, Air Marshal Mohammed Umar (left) with Minister of Defence, Dr Haliru Bello at a dinner in honour of senior officers of Air Rank in Abuja, Tuesday.

Chief of Air Staff, Air Marshal Mohammed Umar (left) with Minister of Defence, Dr Haliru Bello at a dinner in honour of senior officers of Air Rank in Abuja, Tuesday.

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90% Of Money Laundered Via Real Estate, EFCC Reveals

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The Economic and Financial Crimes Commission (EFCC) says about 90 per cent of money laundering is done through the real estate sector.
The commission’s Chairman, Abdulrasheed Bawa, stated this while featuring on Channels TV’s Sunrise Daily, yesterday,
According to him, although the sector is monitored via the special control unit, more needed to be done.
According to Bawa, “One of the problems we have now is the real estate. 90 to 100 per cent of the resources are being laundered through the real estate.”
He said there are so many issues involved, but that they were working with the National Assembly to stop what he called “the gate keepers” as there would be reduction in looting if there is no one to launder the money.
Bawa, the EFCC boss, gave an example of a minister who expressed interest in a $37.5million property a bank manager put up for sale.
He said, “The bank sent a vehicle to her house and in the first instance $20million was evacuated from her house.
“They paid a developer and a lawyer set up a special purpose vehicle, where the title documents were transferred into.
“And he (the lawyer) is posing as the owner of the property. You see the problem. This is just one of many; it is happening daily.”
The EFCC chairman also revealed that he receives death threats often.
Asked to respond to President Muhammadu Buhari’s frequent “Corruption is fighting back” expression, Bawa said he was in New York, USA, last week, when someone called to threaten him.
“Last week, I was in New York when a senior citizen received a phone call from somebody that is not even under investigation.
“The young man said, ‘I am going to kill him (Bawa), I am going to kill him’.
“I get death threats. So, it is real. Corruption can fight back,” he said.
On corruption in the civil service, he said there were a lot of gaps, especially in contracts processing, naming “emergency contracts” as one.
Bawa said, “A particular agency is notorious for that. They have turned all their contracts to emergency contracts.”
However, he said, EFCC has strategies in place to check corruptions, one of which is “corruption risk assessments of MDAs”.
According to him, “I have written to the minister and would soon commence the process of corruption risk assessments of all the parastatals and agencies under the Ministry of Petroleum Resources to look at their vulnerability to fraud and advise them accordingly.”
Asked if the scope of corruption in the country overwhelms him, Bawa, the EFCC boss said, “Yes, and no.”

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We’ve Spent N9bn To Upgrade RSUTH, Wike Confirms

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The Rivers State Governor, Chief Nyesom Wike, says his administration has spent N9billion in upgrading structures and installation of new equipment at the Rivers State University Teaching Hospital (RSUTH).
He said the fact that 40 per cent of the 2021 budget of the state is dedicated to provision of quality healthcare delivery was a further demonstration of the priority placed on the sector.
Wike made the explanation at the foundation laying ceremony for the construction of a Renal Centre at RSUTH, last Friday.
The governor said he made promise to Rivers people that the best would be provided to them in all sectors of the society within his capability because of the mandate they gave to him.
“As we came on here, I just looked around and I see the changes in this teaching hospital. I can say that we have put not less than N9billion in this teaching hospital.
“If you look at the budget, the health sector alone, what it’s taking from the Rivers State Government is not less than 40 percent of the 2021 budget.”
Speaking further, Wike said the state government cannot afford to implement free medical service programme in the present economic circumstance.
While dismissing the request for a subvention for RSUTH, Wike, however, commended the chief medical director and his team for their commitment to turnaround the fortunes of RSUTH.
“I have never seen anywhere that health services can be totally free. They’re telling me that people who come here can’t pay. I have never declared that this state is going to take over the health fees of anybody.”
Also speaking, the former Minister of Transport, Dr. Abiye Sekibo, who performed the flag-off, noted that Wike’s achievements in the health sector in particular, surpass what former governors of the state had done.
Sekibo said that the governor has given equal attention to every section of the health sector by providing complete health infrastructure that was positioning the state as a medical tourism destination in Nigeria.
Earlier, the Rivers State Commissioner for Health, Prof Princewill Chike, lauded Governor Nyesom Wike for his interest in the health of Rivers people.
He noted that the renal centre, when completed, would become another landmark development project in the health sector that would handle and manage all kidney-related ailments.
In his remarks, the Chief Medical Director of the Rivers State University Teaching Hospital, Dr. Friday Aaron, commended Wike for approving the renal centre.
Aaron explained that chronic kidney disease was a major burden globally with estimated 14 million cases in Nigeria.
According to him, over 240,000 of these cases require renal replacement therapy in the form of dialysis and renal transplant.
The CMD said the building that would house the centre was expected to be completed in six months and consists of two floors.
The ground floor, according to him, would house the haemodialysis unit with eight haemodialysis machines.
He further explained that the first floor of the centre would house the surgical component where most of the sophisticated equipment for kidney transplant would be installed.
Aaron said Wike has released the funds required to build, equip the centre as well as for the training of personnel locally and internationally.

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Power Generation Falls 23% To 3,172MW

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Power supply in Nigeria has failed to improve on last week’s performance, as it fell by 22.9 per cent from peak generation of 4,115Megawatts on Saturday to 3,172.20MW as at 5pm, yesterday, latest data from the System Operator has shown.
According to the data, most power plants were operating far below capacity due to gas shortage with Olorunsogo Power Plant 335MW capacity; and Sapele Power Plant, 450MW capacity; completely out.
Egbin was generating at 746MW; Omoku 37.20; Omotosho (NIPP) at 105MW; while Afam was generating at 80MW.
The data showed that on the average power generation in the past seven days were 4,120.9MW on Sunday, June 6; 4,249.4 on Monday, June 7; 4,000.9MW on Tuesday, June 8; 3,720.7 on Wednesday, June 9; 3,517 on Thursday, June 10; 3,765MW on Friday, June 11; and 4,115MW on Saturday, June 12.
The International Oil Companies (IOCs), had last warned that despite Nigeria’s huge gas reserves a lot needs to be done to attract investment to the sector to develop gas reserves to boost power generation in the country.
Speaking at the just concluded Nigeria International Petroleum Summit, the Chair, Shell Companies in Nigeria/MD SPDC, Osagie Okunbor, said with 203trillion Cubic Feet of gas reserves, what was needed in the country is to deliver projects that would produce the gas.
“The challenge is not just growing the reserves but in producing these reserves for the benefits of our country. Essentially growing the reserves and delivering on the production is a function of two or three elements.
“I like to see infrastructure that is required for the development of these resources at two levels. Soft infrastructure is often the one that is more important than and that is the one that is actually drives most of what you see at site.”
“Soft infrastructure refers to the enabling environment and nothing pleases me as much seeing both the Senate President and the speaker of the house give very firm commitments about trying to pass the PIB this month.
“That is probably the big one of the enabling environment to provide the kind of stability we also need all sorts of other issues we need to that we have discussed severally in terms of sanctity of contract, stable policies and collaboration and I think we are well on our way there”, he added.

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