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NEC Orders NNPC, FIRS, Others To Refund N8trn …As Govs Insist On Determining Oil Subsidy Payment
The National Economic Council, NEC, yesterday, directed the federal government revenue agencies like the Nigeria National Petroleum Corporation, NNPC, Nigerian Petroleum Development Company, NPDC, Nigerian Custom Service, Nigerian Ports Authority among others to refund N526 billion and $21 billion which is about N8 trillion that was under-remitted to federation account.
The NEC at its meeting presided over by the Vice-President Yemi Osinbajo at the Presidential Villa, Abuja, received the final report of the forensic audit of the agencies conducted by the international firm, KPMG and observed that eighteen agencies did not remit the appropriate money to the nation’s treasury.
Other agencies to refund the money include Federal Inland Revenue Service, FIRS, Nigerian Maritime Administration and Safety Agency, NIMASA, Nigerian Communications Commission, NCC, Central Bank of Nigeria, CBN, Department of Petroleum Resources, DPR, among several.
Briefing State House correspondents after the NEC meeting at the Council Chambers, State House, the Gombe State Governor, Ibrahim Dankwanbo, who also chaired the NEC’s ad-hoc technical committee on the probe, said the Council adopted the report and resolved to refer those found culpable in the underpayments to the Attorney-General of the Federation for prosecution.
According to him: “KPMG presented the report of the technical audit of RGAs concluding that a total sum of N526 billion and USD$21 billion was under-paid to the Federation Account.
“Council adopted the presentations and reports of the KPMG and the recommendations of its Ad-hoc Committee including a resolution to identify instances where there appears to have been criminal infringements and forward such to the Attorney-General of the Federation and the Legal Committee of the National Economic Council for further action.
“Council resolved to pursue strengthening of the NNPC governance structure to prevent further recurrence of such gross under-remittance by the NNPC and other RGAs.”
The Ad-hoc Committee, which also has other members as Governors of Edo, Kaduna, Akwa Ibom, and Lagos States as well as the Finance Minister, further recommended a refund of the amounts under-paid by the defaulting agencies.
Dankwanbo added that “one of the resolutions of NEC today is to extend the audit to June 2017. So the audit will continue for the remaining agencies: NNOC, NPDC, DPR, Customs, Federal Internal Revenue Services, NPA, Maritime Authorities, all the revenue generating agencies and the details of the infringement are contained in the report.
“The most important decision that was taken is that a sub-committee will be set up, which will be an arm of the legal committee of NEC that will look into details of these kinds of infringements and make sure that those issues that are criminal and require prosecution will be handled by office of the Attorney General of the Federation.”
The NEC also heard that the balance in the Excess Crude Account (ECA) as at May 14, 2018 stands at $1.803 billion; the Stabilization Account as at May 14, 2018 stands at N15.72 billion; and the current balance in the Natural Resources Development Fund as at May 14, 2018 stands at N116.10 billion.
Asked if the Council will not commend agencies that remitted 100 percent, he said: “And also to say that an audit is an exception report, it is not an okay report. So we are not looking for a company that is doing well. He said,
“Accountability does not mean you are doing well, the mirror is very big and depending on how you look at the mirror that is how you will see yourself.
“Our problem is the volume, the quantity of consumption which is not acceptable. Working with the governors so many decisions were taken but by next month, we are going to adopt the position that either the governors take responsibility for the subsidy in their states based on their consumption or we look at other ways.
“For instance, if you say we paid N800 billion subsidy, you will ask who are we paying the subsidy to? And if you look at infrastructure development and capital programme of the federal government, it is about N1.1 trillion, almost 70 percent of what you are spending developing the economy. “If there is no infrastructure development then you cannot talk about development of the economy. N800 billion is a huge amount and we must look into it: who is benefiting from it.
“By next meeting (May or June), we will definitely come up with a position of the government at both levels of volume of what is being brought into the country and what the state and federal government collaborate to check”.
He further updated the press with highlights on a report of the Nigeria Industrial Policy and Competitiveness Council in collaboration with the Nigeria Communications Commission, which recommended State Government’s intervention in boosting the country’s drive towards more investments and business friendly environment.
These include: Improving broadband penetration in the countryside; Resolving multiple taxation; Facilitating access to land; Providing security for investment; Standardising regulatory requirements; Facilitating integrated business linkage;
Collaborating on project development; Providing shared facilities. Osun State governor, Rauf Aregbesola, briefed on the work of the Technical Working Group (TWG) and the Sub-national Ease of Doing Business Project covering October 2017 to date, some of which include: Adopting the model of Presidential Enabling Business Environment (PEBEC) by the States working with their reform champions;
Collaborating with the States in setting up structure for Ease of Doing Business similar to the PEBEC; and Organising State and regional stakeholders’ fora supported by the States in order to communicate and validate the impact of reforms with SME/OPS within each State and region.
Minister of National Planning, Udo Udoma, gave the NEC his report on the Economic Recovery and Growth Plan (ERGP) Focus Labs conducted round the country recently.
The Labs identified 164 projects spread across the six geopolitical zones of the country, indicating that over 500,000 jobs are likely to be created by 2020; and that more labs would be conducted in due course for other sectors, with a recommendation that States should adopt the same model.
Meanwhile, Governors of the states of the federation want states rather than the Nigerian National Petroleum Corporation (NNPC) to determine how much is paid as subsidy by the government.
This is as they raise questions over the amount the NNPC claims that it is paying as a subsidy as well as the corporation’s stated quantity of local consumption which the forum is now disputing.
With dwindling accruals to states, NNPC has told the governors that it is now paying subsidy on 60 million litres daily consumption up from 33 million litres a few months ago.
Not satisfied with the corporation’s explanation, the governors under the Nigeria Governors Forum (NGF) have now said the individual state will determine the quantity of the product consumed in its territory as a basis for calculating the subsidy to be paid.
Emerging from a meeting of the Forum last night in Abuja, its chairman and Zamfara state governor, Abdulaziz Yari, told reporters that “if states say our demand is 30 million litres, you cannot say you bought 60 million litres for us.
“We are taking every situation carefully so that we don’t endanger the security situation of the country and at the same time, we do not play into the hands of the NNPC.”
He said however that the governors will not be pushing for the investigation of NNPC as the move may backfire.
Yari explained: “You see, we are in the hands of these people (NNPC) and we are trying to be cautious. Not just NNPC, even Nigerians are not helping matters because when there is a shortfall in the product, everybody will start making noise. And you will not know why there is a shortfall.
“If we start to investigate, these people will create chaos that we will regret and Nigerians will not look at the damage from the base. But rather, they will start accusing the government of laxity or not doing what it is supposed to be doing.
“So, it’s not about an investigation. It’s about knowing what’s going to happen to future supply. And this supply, the destination must be set.
“That’s is why we gave the states the responsibility to go back and ascertain the quantity needed by each and every state.”
The National Economic Council (NEC) led by Vice President Yemi Osinbajo is expected to endorse the move
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Fubara Frowns At Slow Pace Of Ndele–Omofo–Egmini–Agba-Ndele Road Project ….Says Contract May Be Reviewed
Rivers State Governor, Sir Siminalayi Fubara, has expressed dissatisfaction over the slow progress of work on the 14.5-kilometer Ndele/Omofo/Egamini/Agba-Ndele Road project located off the East–West Road in Emohua Local Government Area.
Addressing newsmen during an inspection tour of the project on Tuesday, the Governor noted that the pace and quality of work being delivered by the contracting firm, Messrs Stream Co. & Equipment Limited, fell below acceptable standards.
He was accompanied on the tour by the Permanent Secretary, Ministry of Works, Dr. Austin Ezekiel-Hart, who briefed the Governor on the status of the project and adjoining infrastructure.
Governor Fubara, who appeared visibly unsatisfied with what he saw on the stretch of the road, said his administration would not condone mediocrity or allow public funds to be wasted on underperforming projects. He, therefore, hinted that a review of the contract may be imminent to ensure the delivery of quality infrastructure to the people.
“I can say here already that the contractor handling the road from the bridge to the East–West Road is not doing a good job. I’m not happy about it. When I get back, there will be a need to review that contract because I’m not impressed. They don’t have the capacity, and we need capacity because we must have value for whatever money we’re spending,” the Governor said.
The Governor, however, commended Setraco Nigeria Limited for the standard and pace of work on the 240-meter Agba-Ndele/Abua Bridge, which forms a major component of the project. He explained that the bridge, which his administration inherited, would significantly improve connectivity among communities in the area once completed.
Governor Fubara stated that the bridge will serve as a key link between communities in Abua/Odual, Ahoada-East, and Emohua Local Government Areas, reducing travel time and providing an alternative route to the East–West Road.
He emphasised that the project demonstrates his administration’s commitment to rural connectivity and inter-community access, which are central to his development vision for Rivers State.
“Where we are standing on is a bridge connecting Abua/Odual, Ahoada-East, and Emohua Local Government Areas. The community that is connected to this bridge is Agba-Ndele.
“Instead of running through the East–West Road to Ahoada-East and heading into Port Harcourt or out of it, this bridge provides easy access for the Abua/Odual people to cross into Emohua, Agba-Ndele, and access the East–West Road in minutes,” he explained.
Governor Fubara also expressed optimism that the bridge would be ready for use in early 2026, noting that Setraco’s expertise and performance met his administration’s expectations for quality and delivery timelines.
He highlighted that projects of such importance should be handled by firms with the capacity to meet government standards.
The Governor further remarked that once completed, the bridge would serve as a crucial economic corridor for farmers and traders, especially those involved in agriculture and cultivation of local produce across the beneficiary local government areas.
He maintained that his administration is determined to deliver people-oriented projects that promote connectivity, strengthen commerce, and enhance livelihoods across the State.
“I’m really impressed with what I’ve seen on the bridge. I’m very sure that before the end of January, it might be completely ready for us to walk through and even drive across,” Governor Fubara said.
Reaffirming his vision for Rivers people, the Governor noted that his development plan seeks to integrate all parts of the State through strategic infrastructure investments that promote mobility, social cohesion, and economic growth.
He explained that his government is executing projects across multiple local government areas to ensure balanced development and inclusivity.
Governor Fubara stated that the administration will soon address the deplorable state of the Abua/Ahoada Road, which he said, will be included in the 2026 state budget.
“Our vision is to connect the entire Rivers State together, especially communities that have challenges of access. The bridge here connects Abua/Odual and Ahoada-East to Emohua and Port Harcourt. It will ease movement, promote trade, and boost our economy because agriculture is strong on this side. Moving goods to the city won’t be a problem anymore,” he said.
Governor Fubara reiterated his administration’s commitment to delivering quality infrastructure that provides value for public funds and meets the aspirations of Rivers people.
Rivers State Governor, Sir Siminalayi Fubara, has unveiled plans to permanently relocate the dumpsite along the busy Port Harcourt Airport–Obiri-Ikwerre Road, describing the current location as both a public health threat and a damaging first impression for visitors arriving in Port Harcourt, the State capital.
The Governor made this known on Tuesday during an inspection of a proposed replacement site, which is a disused burrow pit near Bambo Estate, off Eneka Road in Igwuruta, Ikwerre Local Government Area.
The location is being assessed as a potential permanent dumpsite for the State.
Governor Fubara, who was conducted by the Board Chairman, Rivers State Waste Management Agency (RIWAMA), Dr Samuel Nwanosike, and its Managing Director, Dr Ibimina Wokoma, expressed concern about the environmental and health challenges posed by the existing site, which sits along a major entry point into the State.
“The kind of environmental hazards that we are facing there along the Airport–Obiri- Ikwerre Road; the smell on that road being the entrance into the State, we felt it’s not proper,” he said. “So, we are making alternative arrangements so we can have a permanent refuse dumpsite that meets acceptable standards.
“He added that the government would move swiftly to formalise ownership of the land and complete construction work on the access road to make the new site functional.“We have not concluded the issue of the burrow pit, but the access road, I think the government is doing something about it.
So, I will make sure that everything that needs to be done to ensure government owns this burrow pit is done,” he stated.
Governor Fubara also commended the Rivers State Waste Management Agency (RIWAMA) for what he described as a more assertive and improved approach to managing refuse across the State.In addition to the dumpsite inspection, the Governor also visited the Permanent Secretaries’ Quarters located in Elimgbu Town, Obio/Akpor Local Government Area, to assess the extent of ongoing construction work on the facility.
Rivers State Governor, Sir Siminalayi Fubara, has charged the newly appointed Secretary to the State Government (SSG), Barrister Benibo Anabraba, to uphold the dignity of his office, protect the interest of the State, and discharge his duties with honour, respect, and responsibility.
Governor Fubara gave the charge during the swearing-in ceremony of the new SSG, held on Monday at the Executive Council Chambers of Government House, Port Harcourt.
Describing Anabraba’s appointment as an act of divine favour, the Governor said positions of leadership are not attained by our own human effort but by God’s grace in our lives.
“Let me first congratulate you. I’m using the word ‘congratulations’ because a few of us, not by our power but by the special favour of God, find ourselves in exalted positions. It’s not because we are the best, but only by His grace.”
Governor Fubara noted that the Office of the Secretary to the State Government is one of great honour, occupied by only a few since the creation of Rivers State, and urged the new appointee to serve with humility and dedication.
He, however, expressed confidence in Anabraba’s capacity to deliver, citing his past record as a principal officer of the Rivers State House of Assembly.
“This position is a rare privilege. Guard that office with honour. Discharge your duties with respect. Protect the interest of Rivers State. When you leave office, let it be with honour, and that only comes through responsible service.
“I know you’re a dedicated person. This opportunity is not for show or display of power. It’s a call to duty,” he cautioned.
The Governor emphasised that the current administration is focused on restoring confidence of the people because peace has been achieved in the State.
He enjoined the new SSG to align with the vision of the administration and contribute meaningfully to the collective progress of Rivers people.
“We are emerging from a very difficult period and must reassure our people that we mean well for them, especially now that peace has returned to Rivers State. By the grace of God, do your work well. Help us succeed in this assignment that God has given to us,” the Governor added.
