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‘NNPC Owes Federation Account N1.305trn’
The Nigeria Extractive Industries Transparency Initiative (NIETI) has said the Nigerian National Petroleum Corporation (NNPC) has yet to remit N1.305 trillion to the Federation Account as at December 2011.
Chairman, NEITI National Stakeholders Working Group, Mr Ledum Mitee, disclosed this yesterday in Abuja at a public presentation of its independent audit report for the oil and gas industry spanning 2009 to 2011.
“The audit report reveals that NNPC owes N1.305 trillion to the federation account as at December 31, 2011; this is a trade debt.
“This is because the sum of N928 billion falls within the 90 days permissible period, leaving a balance of N377 billion which the NNPC is currently paying in installments to the federation account,’’ he said.
Mitee also alleged that N1.40 trillion was illegally deducted by the NNPC as oil subsidy claims from domestic crude sales proceeds before remittance to the federation account.
He said it contravened the stipulated procedure as the NNPC and other oil marketers were expected to receive their subsidy payments from the Petroleum Support Fund, after due verification from the Petroleum Products Pricing Regulatory Agency.
The report stated that N198 billion was claimed by NNPC as subsidy payment in 2009 while N416 billion was claimed in 2010 and N786 billion in 2011.
Mitee, who gave a breakdown of the audit report, said $143.5 billion was generated as revenue from the oil and gas sector between 2009 and 2011.
“This amount is made up of proceeds from sales of equity crude, royalty, signature bonus, concession rentals, gas flaring penalties, petroleum profit tax and companies income tax, among others.”
He said that sales of crude oil and gas within the period amounted to $81.9 billion while revenues from petroleum profit tax, royalty, signature bonus and others amounted to $45.7 billion.
“The actual direct revenue flows to the federation account during the period was $133.8 billion.
“Revenue flows to states amounted to $1.6 billion, while the flows to other Federal Government entities such as NDDC and Education Tax Fund, amounted to $3.2 billion.
“This brings the earlier reported government earnings to $143.5 billion.”
The report also noted that the average conversion rate by the NNPC deferred from the annual average Central Bank of Nigeria rate, thereby resulting in losses of N98.3 billion during the period under review.
Mitee said that some oil companies, including NECONDE Energy Ltd, SEPTA Energy Ltd, Energia Ltd and Emerald Energy Resources, refused to cooperate with NEITI and its auditors during the audit.
He said NEITI would take appropriate actions in accordance with the enabling Act and impose sanctions on the erring companies. As part of its recommendations, the report urged the NNPC to pay its debt to the federation account.
It urged the Federal Government to review the deduction of subsidy claims from domestic crude by NNPC in line with due process. The 2009/2011 report was carried out for the first time by an indigenous auditing firm.
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I’m Committed To Community Dev – Ajinwo
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RSG Tasks Rural Dwellers On RAAMP …As Sensitization Team Visits Akulga, Degema, Three Others

Rivers State Head of Service, Dr (Mrs) Inyingi Brown, has called on rural communities in the State to embrace the Rural Access and Agricultural marketing project (RAAMP) with a view to improving their living conditions.
This follows the ongoing sensitization campaign by the State Project Implementation Unit (SPIU) visits to Degema, Abonnema, Afam headquarters of Degema, Akuku Toru and Oyigbo Etche and Omuma local government areas respectively.
Dr Brown who was represented by the Deputy Director, Special Duties in her office, Mrs Dein Akpanah, said RAAMP was initiated by the Federal Government and World Bank to economically empower rural dwellers.s
She said the World Bank understands the plights of rural farmers and traders in the State, and therefore came up with the programme to address them.
According to her, RAAMP will improve the conditions of farmers, traders and fishermen, and therefore, behoves on every rural communities in the State to embrace the programme.
The Head of Service also said the programme would support the youths to be gainfully employed while bridges and roads will be built to link farms and fishing settlements.
Also speaking, the State project coordinator, Mr Joshua Kpakol, said the programme has the potential of creating millionaires among farmers and fishermen in the State.
Kpakol who was represented by Engr. Sam Tombari, said RAAMP would help farmers and fishermen to preserve their produce.
According to him, the project will build cold rooms and Silos for preservation of crops and fishes while access roads will also be created to link farmers and fishermen to the market.
He, however, warned them against any act that will lead to the suspension of the projects by the World Bank.
Kpakol particularly warned against acts such as kidnapping, marching ground, gender based violence and child labour, adding that such acts if they occur may lead to the cancellation of the project by the World Bank.
During the visit to Oyigbo local government area, Mr Joshua Kpakol, said the team was there to let them know how they will benefit from the Raamp.
The coordinator who was personally at Oyigbo said the World Bank introduced the project to check food insecurity in the State.
He said already 19 states in Nigeria are already benefitting from the project and called on them to embrace the project.
Meanwhile, stakeholders in the three local government areas have commended the World Bank for including their areas in the project.
They, however, complained over the incessant attacks by pirates on their waterways.
At Degema, King Agolia of Ke kingdom said land was a major problem in the kingdom.
King Agolia represented by High Chief Alpheus Damiebi said many indigenes of the kingdom are willing to go into farming but are handicapped by lack of land.
Also at Degema, the representative of the Omu Onyam Ekeim of Usokun Degema kingdom, Osoabo Isaac, said Degema has embraced the programme but needed more information on the implementation of the programme.
Similarly, while High Chief Precious Abadi advised that the project should not be narrowed to only crop farming, a community women leader, Mrs Orikinge Eremabo Otto, called for the construction of cold rooms in all fishing settlements in the area.
At Abonnema, Mr Diamond Kio linked the problem of the area to incessant piracy along waterways.
He also expressed fears over the possibility of the project being hijacked by politicians.
Also at Abonnema, a stakeholder, Ikiriko Kelvin, called on the World Bank to design an agricultural project that will suit the riverine environment, while at Oyigbo, HRH Eze Boniface Akawo expressed satisfaction with the project.
John Bibor
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Senate Replaces Natasha As Committee Chairman

The political mudslinging between the Senate leadership and Senator Natasha Akpoti-Uduaghan continued yesterday as the Senate named Senator Aniekan Bassey as the new Chairman of the Committee on Diaspora and Non-Governmental Organisations.
Senate President, Godswill Akpabio, announced the appointment during yesterday’s plenary, confirming Bassey’s replacement of Senator Natasha Akpoti-Uduaghan, who is currently on suspension.
Akpoti-Uduaghan was reassigned to the Diaspora and NGOs Committee in February after she was removed as Chair of the Senate Committee on Local Content during a minor reshuffle.
Bassey is the senator representing Akwa Ibom North-East Senatorial District.
Although no reason was given for her removal yesterday, the change is believed to be connected to her unresolved suspension.
In May, Justice Binta Nyako of the Federal High Court ordered her reinstatement and directed her to tender an apology to the Senate.
However, the Senate has insisted it has not received a certified true copy of the court judgment.
Akpoti-Uduaghan who represents Kogi Central, has yet to resume her legislative duties despite a recent court ruling that voided her suspension.
In a televised interview on Tuesday, Akpoti-Uduaghan said she was awaiting the Certified True Copy of the judgment before officially returning to plenary, citing legal advice and respect for institutional process.
Although the Federal High Court described her suspension as “excessive and unconstitutional”, a legal opinion dated July 5 and attributed to the Senate’s counsel, Paul Daudu (SAN), argued that the ruling lacked any binding directive to enforce her reinstatement.
Akpoti-Uduaghan, one of only three female senators in the current assembly, said the continued delay in allowing her return was not only a denial of her mandate but also a blow to democratic representation.
“By keeping me out of the chambers, the Senate is not just silencing Kogi Central, it’s denying Nigerian women and children representation. We are only three female senators now, down from eight,” she said.
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