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FG Sues Oil Firm Over $3bn Unpaid Taxes

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The Federal Government, through the Office of the Attorney-General of the Federation, has commenced legal proceedings against Addax Petroleum Development Nigeria Ltd, a Chinese-owned oil firm, over the company’s alleged under-remittance of $3billion in taxes and royalties.
Documents before Justice Mojisola Olatoregun showed that the funds are outstanding claims against the company under the Petroleum Profit Tax Act and Petroleum (Drilling and Production) Amendment Regulation 2003 over Oil Mining Leases (OMLs) 123, 124, 126, and 137.
Joined as respondents are Addax Petroleum Development Nigeria Ltd, Addax Petroleum Exploration Nigeria Ltd, the Nigerian National Petroleum Corporation (NNPC), the Ministry of Petroleum Resources, Department of Petroleum Resources, and the National Petroleum Investment and Management Services (NAPIMS).
D.A. Awosika and Partners, counsel representing the Federal Government, stated that the $3billion unremitted funds came as a result of the oil multinational’s illegal and irregular reliance on side letters dated November 21, 2001, December 20, 2001, and August 24, 2004, that were never gazetted.
The government moved to recover the funds from Addax after report on how the Chinese firm allegedly paid millions of dollars in bribes to Nigerian officials to secure juicy contracts in the oil industry.
In 1998, Addax Petroleum, a subsidiary of China’s Sinopec Group, one of the world’s largest oil and gas producers, entered into a Production Sharing Contract (PSC) with the NNPC (as concessionaire) in respect of OPL 98/118 and OPL 90/225.
Four years later, the company discovered oil in commercial quantities and the OPLs were converted into Oil Mining Leases (OMLs) 123/124 and 126/137.
The PSC entered by the two parties required Addax Petroleum to pay royalties on any oil produced from the relevant oil blocks at the rate of 20 per cent as stipulated by law. It also provided that the Petroleum Profit Tax Act (PPTA) applicable to the contract areas shall be 65.75 per cent for the first five years, starting from the first day of the month of the first sale of the oil, and 85 per cent thereafter.
D.A Awosika & Partners are insisting that Addax Petroleum fraudulently obtained a side letters in 2001 and 2004 that were “never gazetted” and which they used in calculating their taxes and royalties.
The calculations in the side letters fixed the PPT payable by the company at 60 per cent, and rather than the 20 per cent flat rate of royalty, provided for a graduated rate depending on the volume of oil produced from the oil blocks.
The said letters were signed by then Special Assistant on Petroleum and Energy to former President Olusegun Obasanjo, Mr. Funsho Kupolokun, in 2001 and the then Director General/Special Adviser on Budget to the President in 2004, Mr. Olabode Agusto.
“Several objections and protests were raised by Federal Inland Revenue Service (FIRS), NNPC, and DPR to the reliance on these side letters by the defendants to bypass, supplant, and subvert the process,” the government’s lawyers stated.
“In 2003, in order to give effect to the graduated royalty regime stated in the side letters, the Minister of Petroleum Resources (Obasanjo) issued the Petroleum (Drilling and Production) Amendment Regulations, which provided for graduated royalty rates for onshore and shallow offshore PSC which did not account for royalty by tranches.
effect from the first day of January, 2000, which was the same date of commencement of the graduated royalty rates contained in the side letters.”
Several meetings between Nigerian government officials – represented by the FIRS, DPR, and NNPC – and representatives of Addax Petroleum reassess and resolve the latter’s “colossal underpayment” to the government between 2007 and 2012 yielded no results.
But Addax Petroleum maintained its right to the use of the side letters for computing the taxes on its operations and dragged the government over accusations of a breach of their 1998 PSC on the oil blocks.
In suit FHC/ABJ/CS/1099/2014 filed before former Chief Judge of Federal High Court Ibrahim Auta, the company sought a judicial approval towards their continued use of the side letters to compute its financial obligations to the Nigerian government.
However, on May 26, 2015, three days before the administration of the then president, Goodluck Jonathan, handed over to his successor, Muhammadu Buhari, the government negotiated a controversial out-of-court settlement with Addax Petroleum, agreeing to pay the company $3.4billion (about N1trillion).
Court papers filed by the Nigerian government’s lawyers stated that Addax Petroleum “surreptitiously teamed up” with some officials of DPR, FIRS, and NNPC to execute certain terms of settlement that were eventually made the Consent Judgment of court, notwithstanding the pendency of several applications yet to be heard by the same court.
“In executing the said terms of settlement, the authorities were not sought, no approval at Federal Executive Council level was given, the governing boards of the FIRS, NNPC and DPR did not authorise those officers that executed the bogus terms of settlement to so act,” the lawyers argued.
However, when President Muhammadu Buhari’s assumed office, the NNPC in a letter to Addax Petroleum endorsed by the president and dated September 7, 2015, reversed the agreement entered into by the previous administration.
In the ongoing suit before Justice Olatoregun, the federal government is seeking an order directing the NNPC, Ministry of Petroleum/DPR, and NAPIMS from further allocation of crude oil explored from OMLs 123, 124, 126, and 137 to Addax Petroleum pending when the company furnishes the court verifiable Bank Guarantee from Nigerian banks to cover the monetary claims of the plaintiff.
Other prayers sought by the Nigerian government include an order restraining the NNPC, Petroleum Ministry, and NAPIMS from dealing with Addax Petroleum, as well as stopping them from transferring or assigning their interest in the OMLs to another person.
Also, an order compelling the Nigerian agencies to file an affidavit of fact detailing the company’s assets, properties, and funds.
On Friday, Justice Olatoregun granted an order for the government’s lawyers to serve court papers to the NNPC, the third respondent in the suit, whose office is situated in Abuja, outside the court’s jurisdiction.
She thereafter adjourned the suit till May 3, 2018.

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Tinubu Orders Civil Service Personnel Audit, Skill Gap Analysis 

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President Bola Tinubu has ordered the commencement of personnel audit and skill gap analysis across all cadres of federal civil servants.

The president gave this directive in Abuja, yesterday, while speaking at the International Civil Service Conference, reaffirming his resolve to achieve efficiency and professional service delivery in the civil service.

“I have authorized the comprehensive personnel audit and skill gap analysis across the federal civil service to deepen capacity. I urge all responsible stakeholders to prioritize timely completion of this critical exercise, to begin implementing targeted reforms, to realize the full benefit of a more agile, competent and responsive civil service,” the president announced.

Tinubu further directed all Ministries, Departments and Agencies (MDAs), to prioritise data integrity and sovereignty in national interest.

He called for the capture, protection and strategic publication of public sector data in line with the Nigeria Data Protection Act of 2023.

“We must let our data speak for us. We must publish verified data assets within Nigeria and share them internationally recognized as fruitful. This will allow global benchmarking organisation to track our progress in real time and help us strengthen our position on the world stage. This will preserve privacy and uphold data sovereignty,” Tinubu added.

President Tinubu hailed the federal civil service as the “engine” driving his Renewed Hope Agenda, and the vehicle for delivering sustainable national development.

He submitted that the roles of civil servants remain indispensable in modern governance, declaring that in the face of a fast-evolving digital and economic landscape, the civil service must remain agile, future-ready, and results-driven.

“This maiden conference is a bold step toward redefining governance in an era of rapid transformation. An innovative Civil Service ensures we meet today’s needs and overcome tomorrow’s challenges.

“It captures our collective ambition to reimagine and reposition the civil service. In today’s rapid, evolving world of technology, innovation remains critical in ensuring that the civil service is dynamic, digital” the President said.

Head of the Civil Service of the Federation, Didi Walson-Jack in her welcome address told the President that his presence and strong words of commendation at the conference has renewed the morale and mandate of public servants across the country.

Walson-Jack described Tinubu as the backbone of driving transformation in the Nigerian civil service, and noted that the takeaways from past study tours undertaken to understudy the civil service in Singapore, the UK and US under her leadership, is already yielding multiplier effects.

Walson-Jack assured Tinubu that her office, in collaboration with reform-minded stakeholders, will not relent in accelerating the implementation of the Federal Civil Service Strategy and Implementation Plan, FCSSIP 25.

She affirmed that digitalisation, performance management, and continuous learning remain key pillars in strengthening accountability, transparency, and service delivery across MDAs.

Walson-Jack reaffirmed that the civil service is determined to exceed expectations by embedding a culture of innovation, ethical leadership, and citizen-centred governance in the heart of public administration.

 

 

 

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Rivers Remains Your Willing Partner For Enhanced Maritime Operations, Ibas Tells Navy 

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Rivers State Administrator,  Vice Admiral (Rtd) Ibok-Ete Ibas, has reaffirmed the state’s commitment to supporting enhanced maritime security, protection of national assets, and economic growth through strategic collaboration with security agencies, particularly the Nigerian Navy.

Ibas, according to a statement by his Senior Special Adviser on Media, Hector Igbikiowubo, gave this assurance while hosting participants of the Nigerian Naval Warfare College Course 9, who were on a study tour to Rivers State, at the Government House in Port Harcourt on Monday.

Represented by the Secretary to the State Government, Prof. Ibibia Lucky Worika, the Administrator lauded the theme of the study tour, “Optimizing Technology for Effective Maritime Security Operations,” emphasizing that leveraging modern technology is critical to safeguarding national assets, coastal communities, and ensuring sustainable economic development.

“We are witnessing a time when threats in the maritime domain—ranging from piracy, smuggling, and illegal fishing to environmental hazards—are becoming increasingly sophisticated. To counter these challenges, we must deploy equally advanced solutions,” he stated.

“The integration of modern technology—from satellite surveillance and autonomous systems to AI-powered threat detection and integrated communication networks—is no longer a futuristic ideal but a present-day necessity,” he added.

Ibas commended the Nigerian Naval War College for prioritizing technological innovation in maritime security, underscoring its dedication to advancing national security strategies.

He reiterated the State Government’s readiness to collaborate with federal security agencies.

He said, “Rivers State remains a willing partner in this endeavor. We are committed to supporting all federal security agencies operating within our territory and will continue to invest in strategic infrastructure and cooperative frameworks that enhance safety on land and at sea.”

The Administrator urged the participants to ensure that the study tour strengthens collective stakeholder resolve and broadens professional approaches to achieving sustainable maritime security outcomes.

In his remarks, the Commandant of the Nigerian Naval War College, Rear Admiral Akinola Olatunde Olodude, highlighted Rivers State’s strategic importance to Nigeria’s economy, noting that the state accounts for 30% of Nigeria’s coastline (approximately 853km), over 40% of the nation’s crude oil output, and 33% of its GDP and foreign exchange earnings.

“Given these critical assets, transitioning from traditional maritime security methods to optimizing technology is imperative for addressing contemporary challenges in Rivers State’s diverse maritime environment,” Olodude stated.

The statement added that the study tour underscores the Nigerian Navy’s commitment to fostering operational excellence and technological advancement in maritime security, with Rivers State playing a pivotal role in this national effort.

 

 

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Court Arraigns Rivers Traditional Ruler Over Impersonation, Other Charges 

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A traditional ruler in Rivers State, Eze Victor Prince Worluchem, has been docked at a State Senior Magistrate Court on six-count charges bordering on impersonation, misrepresentation, and false pretence.

 

The charges, marked PMC/2/12026, alleged that Worluchem falsely paraded himself as the paramount ruler of Port Harcourt City and Majesty of Rebisi Kingdom, despite a court order restraining him from doing so.

 

The six-count charges against Worluchem include disobeying a court order in Suit No PHC/18/8/2013, which restrained him from parading himself as Eze Ebar Rebisi III of Rebisi Kingdom, and conduct likely to cause a breach of peace by falsely and fraudulently presenting himself as Majesty of Rebisi Kingdom.

 

These offences are punishable under Section 133 and Section 2 of the Criminal Code Cap 37 Vol. II Laws of Rivers State of Nigeria 1999.

 

During the court proceedings, Worluchem pleaded not guilty to all six charges.

 

His counsel, U.G. Wokocha, applied for bail, arguing that the offences were bailable and that his client had reliable sureties.

 

However, Senior Magistrate, Kingsley Briggs, refused to grant him bail on self-recognition, but granted him bail with two sureties in the sum of N500,000.

 

The sureties are required to be blood relatives or recognized persons in society with a reliable source of livelihood, not above 55 years old.

 

The court adjourned the matter to July 21, 2025, for continuation of hearing.

 

After the proceedings, Lawrence Ufomba, counsel for the complainant and Port Harcourt Council of Chiefs, briefed journalists on the court’s decision, while Worluchem’s counsel declined to comment.

 

 

 

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