Business

NEITI’s Audit Report Inadequate, Misleading – PPPRA

Published

12 years ago

August 7, 2013

The Petroleum Products Pricing Regulatory Agency (PPPRA) has debunked the audit report of the Nigeria Extractive Industries Transparency Initiative (NEITI) which said the agency should remit N4.423 billion to the Federal Government.
The Executive Secretary of the PPPRA, Mr Reginald Stanley, told newsmen in Abuja on Sunday that NEITI’s report “is steeped in inaccuracies and gross misrepresentation of facts.
“The report has glaring potential to mislead the public and further cast aspersions on the activities of the PPPRA as a key administrator of the Petroleum Support Fund (PSF),” Stanley stated
On July 29, NEITI released its 2009-2011 audit report on the oil and gas sector, recommending that the PPPRA should remit N4.423 billion, arising from “over-recovery’’ collected to the Federation Account for the period in review.
The report also ordered other establishments to refund various sums of money to the Federal Government.
“The PPPRA wishes to state unequivocally that the statement credited to the NEITI chairman is misleading and a gross misrepresentation of facts.
“We note with dismay, NEITI’s admission to the fact that it had no absolute control of its sources of data as they were derived information and data provided through its own independent auditors as well as companies doing business in the sector.
“Such over-reliance on secondary data must have accounted for the glaringly flawed computations presented in the report.
Stanley explained that the N4.423 billion ‘over-recovery’ that the PPPRA was asked to remit, was not correct, noting that only the NNPC still had an outstanding payment of about N3.98 billion to be paid into CBN’s account.
“The total over-recovery advised for the nine marketers in 2008-2009 amounted to N14,073,783,779.74; the total amount paid to the account with CBN was N6,966,185,316.65, with the sum of N3,126,587,419.98 net-off by the Federal Ministry of Finance.
He explained that “the PPPRA does not disburse or ‘warehouse’ subsidy funds as suggested by the report,’’ stating that the agency only processed documents submitted by marketers for subsidy payments.
“PPPRA merely verifies and processes import subsidy documents as submitted by marketers, while forwarding same to the Federal Ministry of Finance, which is statutorily charged with the responsibility of approving payments under the PSF scheme.’’
The Executive Secretary said there was need for NEITI to meticulously cross-check its facts and figures with relevant agencies before making such report public.
He said that it was instructive to note NEITI’s admission of the fact that it had no absolute control of its sources of data, adding: “such a possibly deficient source must have accounted for the glaringly subjective computations presented in the report’’.
The PPPRA boss said the agency was alarmed to discover that most observations and clarifications earlier made to the preliminary report were ignored and not reflected in the final report released to the public.
“We wish to advise that NEITI takes a second look at our initial observations and clarifications, while reconciling its figures with those of both the PSF and Federation Accounts.’’
Stanley affirmed that there was no discrepancy in PPPRA’s records and the CBN, where the PSF account was domiciled.
He said that the responsibility of payment shifted from PPPRA to the Ministry of Finance, following the introduction of the Sovereign Debt Statement and the Sovereign Debt Note in 2009.
The PPPRA chief said that the administration of the PSF contained checks and balances, which made it extremely difficult, if not impossible for just one organisation within the group to connive with marketers.
According to him, the PPPRA has been in the fore front of enthroning transparency and accountability in the subsidy scheme with the introduction of improved import documentation and inspection.
“The PPPRA has continued to serve the Nigerian economy with effective supply and distribution of petroleum products in the last two years.
“In December 2011, having observed the anomalies and challenges in the administration of the PSF Scheme, the agency commenced a process of reforms to sanitise the system and regain the confidence of Nigerians and stakeholders in the scheme.
“These initiatives, under the directive of the Minister of Petroleum Resources, Mrs Diezani Allison-Madueke, have recorded huge successes, resulting in improved import documentation regime and guaranteeing accountability of volume supplied.
“There was reduction in quantity of PMS consumed, improved PMS availability nationwide and we also banned loading from non-refinery/blending plant facilities in West Africa to prevent round-tripping and increased PMS days’ sufficiency.
“Similarly, PPPRA has effected reduction in PMS subsidy, reduction in the number of marketers under the subsidy scheme as well as even management of annual PMS subsidy budget, using LAYCAN programming.
“From the foregoing, we wish to advise that NEITI takes a second look at our initial observations and clarifications, while reconciling its figures with those of both the PSF and Federation Accounts.
“In as much as the PPPRA as a responsible and responsive government agency is not disinclined to constructive criticisms of any kind, it shall appreciate every effort by relevant organisations to adequately confirm their information before taking such to the public domain.

Business

NCAA Certifies Elin Group Aircraft Maintenance

Published

5 days ago

September 29, 2025

The Tide

The Nigerian Civil Aviation Authority (NCAA) has certified Elin Group Limited to operate as an approved aircraft maintenance organization (AMO).

Elin Group Limited confirmed the certification in a Statement released at the Weekend.

The Executive Director, Elin Group Limited, Engr. Dr. Benedict Adeyileka, noted the significance of the certification, stating that it recognizes the company’s commitment to upholding high maintenance standards.

Adeyileka also stated that “the issuance of the AMO Certificates and OPSPEC by the NCAA is a landmark for both Elin Group and Nigeria’s aviation industry. This approval empowers us to maintain our fleet and extend services to other operators, thereby supporting the sector’s growth.

“It affirms the standards we have upheld over the years and places on us the responsibility to expand services that strengthen the aviation ecosystem. We thank the NCAA for their confidence in our capabilities.

“This recognition inspires us to keep striving for excellence and innovation in building a stronger, safer, and more sustainable aviation industry.”

The certification follows the company’s recent completion of a 7,800 landings maintenance check on its Bombardier Challenger 604 aircraft and Agusta A109E helicopter.

This type of inspection, similar to a D-check in commercial aviation, was conducted entirely in Nigeria for the first time.

With the NCAA approval, Elin Group is authorized to maintain its own fleet and provide maintenance services to other operators.

The certification is expected to contribute to the growth of local aviation maintenance capabilities.

“PenCom Raises Capital Requirement For PFAs To N20b

…Sets December 2026 Deadline

The National Pension Commission (PenCom) has announced a sweeping revision to the capital requirements for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), raising the minimum threshold for PFAs tenfold, from N2 billion to N20 billion.

The move, aimed at strengthening financial stability and operational resilience, marks one of the most significant regulatory shifts in Nigeria’s pension industry in over two decades.

In a circular titled “Revised Minimum Capital Requirements for Licensed Pension Fund Administrators and Pension Fund Custodians”, PenCom stated that PFAs with Assets Under Management (AUM) of N500b and above must now maintain a capital base of N20 billion plus 1% of the excess AUM beyond N500 billion.

The revised capital requirements for both PFAs and PFCs would take effect immediately for new licenses, while existing operators have until December 31, 2026, to comply.

PenCom would monitor compliance every two years based on audited financial statements, and any shortfall must be rectified within 90 days.

PenCom emphasized that the review is anchored in Sections 60(1)(b), 62(b), and 115(1) of the Pension Reform Act (PRA) 2014. It aims to support the long-term viability of pension operators, improve service delivery, and ensure the sustainability of the Contributory Pension Scheme (CPS), which has now been in operation for 21 years.

“PFAs are therefore required to maintain adequate capital to sustain the achievements of the CPS, support ongoing pension reform initiatives, and deploy adequate resources to effectively fund operations,” PenCom stated.

PFAs with AUM below N500b are also required to meet the new N20 billion minimum. Special Purpose PFAs, such as NPF Pensions Limited, must hold N30 billion, while the Nigerian University Pension Management Company Limited is required to maintain N20 billion.

“The capital requirement was reviewed in line with global best practice, which ensures that capital is proportionate to the risk exposure of the Pension Fund Operator. The new model aligned the capital requirement with the Pension Asset Under Management (AUM) and Assets Under Custody (AUC) of the PFAs and PFCs respectively”, the circular stated.

For Pension Fund Custodians (PFCs), the minimum capital requirement has been raised from N2 billion, unchanged since 2004, to N25 billion plus 0.1% of AUC.

The Commission cited the exponential growth in assets under custody and the increasing complexity of operations, including technology deployment, cybersecurity, and staff welfare, as key drivers of the revision.

“The operating landscape of PFC business has evolved significantly over 21 years,” the circular noted. “These developments underscore the need to reassess the adequacy of the existing capital threshold to ensure continued financial stability and effective risk management”, it stated.

The announcement signaled PenCom’s commitment to aligning Nigeria’s pension industry with global standards, ensuring that operators are well-capitalized to navigate macroeconomic pressures and deliver secure retirement benefits to millions of Nigerians.

Business

SMEDAN, CAC Move To Ease Business Registration, Target 250,000 MSMEs

Published

5 days ago

September 29, 2025

The Tide

The Corporate Affairs Commission (CAC) and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) are deepening partnership to ease business registration for small business owners in the country.

The agreement would provide the framework for free registration of 250,000 Micro Small and Medium Enterprises (MSMEs) across the country.

The Registrar-General, CAC, Hussaini Magaji, revealed this during the signing of a Memorandum of Understanding (MoU) between both organisations, in Abuja, at the Weekend.

Magaji said that the framework provided under the Renewed Hope Agenda of President Bola Tinubu’s administration would eliminate cost barriers by waiving all statutory fees.

According to him, entrepreneurs would now be able to obtain certificates seamlessly, without delays or middlemen, through the CAC portal.

He said, “Formalising a business is more than obtaining a certificate.

“It provides entrepreneurs with a legal identity, improves access to finance and markets, enhances record keeping and strengthens compliance with tax or regulatory obligations.

“For the government, it expands the tax base, improves policy design and reflects the two sides and contribution of our MSME sector.

“By formalising an additional 250,000 enterprises under this initiative, we are helping to create jobs, foster innovation and build a more inclusive economy,” he said.

The registrar-general, while commending SMEDAN on the partnership, urged the MSMEs to take advantage of this opportunity to formalise their businesses, access new opportunities and become part of Nigeria’s growth story.

Magaji also appealed to the media to Partner in amplifying this message to ensuring that every deserving entrepreneur is carried along.

On his part, the Director-General of SMEDAN, Charles Odii, hailed the initiative as a milestone for small businesses, describing it as one of the “big wins” of the current administration.

Odii explained that SMEDAN would mobilise, profile and guide eligible businesses for registration through its dedicated online portal.

He insisted that the platform would eliminate the role of middlemen, who previously inflated registration costs, sometimes charging between N30,000 and N100,000 against the official CAC rate of about N11,000.

Odii said the initiative would complement the President’s N200 billion economic assistance programme, which provides N50 billion in grants for nano businesses, N75 billion in single-digit loans for SMEs and N75 billion for manufacturers.

He said that the interventions demonstrated the resolve of government to ease the cost of doing business and expand opportunities for entrepreneurs.

The director-general said that the MoU was timely, especially as CAC prepared to review its fees by October, reiterating that the initiative ensures 250,000 businesses will benefit from free registration before the review.

According to Odii, many businesses collapse within their first five years due to a lack of structure, noting that registration was the first step to building resilience.

The SMEDAN boss assured that beyond registration, SMEDAN would continue to support entrepreneurs through business clinics, advisory services and linkages.

He said this would be done in collaboration with other agencies such as the Standards Organisation of Nigeria (SON) and the Nigerian Export Promotion Council (NEPC).

Odii also commended the President’s move to raise the tax exemption threshold for small businesses with N25 million to N50 million annual turnover, saying it will reduce the burden on enterprises and encourage compliance.

He thanked the Registrar-General of CAC, the Federal Ministry of Industry, Trade and Investment and the Chief of Staff to the President for their support in bringing the initiative to fruition.

Business

Blue Economy: Minister Seeks Lifeline In Blue Bond Amid Budget Squeeze

Published

5 days ago

September 29, 2025

The Tide

Ministry of Marine and Blue Economy is seeking new funding to implement its ambitious 10-year policy, with officials acknowledging that public funding is insufficient for the scale of transformation envisioned.

Coordinating Minister of the Ministry,
Adegboyega Oyetola, said finance is the “lever that will attract long-term and progressive capital critical” and determine whether the ministry’s goals take off.

The Permanent Secretary of the ministry, Olufemi Oloruntola, stressed that the funding gap must be closed to move from policy to practice.

“Resources we currently receive from the national budget are grossly inadequate compared to the enormous responsibility before the ministry and sector,” he warned.

He described public funding not as charity but as “seed capital” that would unlock private investment adding that without it, Nigeria risks falling behind its neighbours while billions of naira continue to leak abroad through freight payments on foreign vessels.

Oloruntola argued that the sector’s potential goes beyond trade, pointing to the surge of diaspora spending every festive season. With the right coastal infrastructure, he said, the marine economy could capture a slice of those inflows as foreign exchange and revenue.

The Chief Executive, Nigerian Exchange (NGX), Jude Chiemeka, said blue bonds, which are loans raised through the capital market, but tied specifically to projects that protect or develop marine projects, could unlock huge sums of much-needed capital.

He said “We have N24.6 trillion in pension assets, with 5 percent set aside for sustainability, including blue and green bonds,” he told stakeholders. “Each time green bonds have been issued, they have been oversubscribed. The money is there. The question is, how do you then get this money?”

The NGX reckons that once incorporated into the national budget, the Debt Management Office could issue the bonds, attracting both domestic pension funds and international investors.

Seychelles, he pointed out, raised $15 million from a blue bond to support its fisheries industry, a scale Nigeria, with over 853 km of coastline and significant freshwater bodies, could surpass.

Yet even as officials push for creative financing, Oloruntola stressed that the first step remains legislative.

“Even the most innovative financial tools and private investments require a solid public funding base to thrive.

“We therefore call on the relevant authorities, most especially the National Assembly, to prioritise the marine and green economy sector.”

“Nigeria must match ambition with resources” and “strategy into execution”, he said

It would be noted that with government funding inadequate, the ministry and capital market operators see bonds as alternative financing.