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NNPC Clarifies Alleged N3.8trn Under-Remittance From Crude Oil Sales

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The Nigerian National Petroleum Corporation (NNPC) has explained issues involving the alleged under-remittance of N3.8 trillion from crude oil sales to the Federation Account between January and December, 2015.
The Senate had last Wednesday, faulted the NNPC over alleged under-remittance of N3.8trillion revenue from domestic crude oil sales to the Federation Account during the period and urged it to desist from further deduction at source, as the practice contravened Section 162(1) of the 1999 Constitution (as amended).
It also mandated the Federation Account’s Allocation Committee (FAAC) or any other approving authority to urgently approve an agreed percentage which should be allocated to NNPC monthly, as the operational cost to prevent its operations from being affected adversely.
But in a document sent to the Federal Ministry of Finance, Budget and National Planning, the NNPC explained that the allegation was resolved by a forensic audit carried out by the Ministry of Finance in 2015 which showed a net indebtedness in favour of NNPC.
It also stated that the amount allegedly under-remitted is the applicable subsidy and unrealised revenue from petroleum products sales and other operational costs for the period.
The corporation, which gave a breakdown of the N3.8trillion to include, the PPPRA Certified Subsidy (2012-November 2015) N2,439,439,859,459,982.00, Validated and Approved NNPC Claims (2004 – 2009) N797,710,684,354.00, Crude Oil and Products Losses (2012-November 2015) N245,184,597,565.65, and Pipeline Maintenance Cost (2012-November 2015) N409,985,574,539.86, attributed the misunderstanding to the non-incorporation of the claims into the Accountant-General of the Federation’s report even though they had been validated by Forensic Auditors and the Auditor-General of the Federation.
It further stated, “Subsidies are operational costs as set out in the NNPC Act Section 7(d) which does not contradict the 1999 Constitution Section 80 (1) and Section 162 (1)”.
Sources at the NNPC disclosed that the management is well disposed to the proposal by the Senate to approve a certain percentage of revenues for it as cost of collection as is the case with the Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and the Department of Petroleum Resources (DPR) in readiness for full deregulation.
Nevertheless, in April 2021, NNPC, had in a statement by its Group General Manager, Group Public Affairs Division, Dr Kennie Obateru, disclosed that despite challenges, it would continue to remit funds to the Federation Account.
NNPC had in a letter to the Accountant General of the Federation warned that it would not make any remittance to the Federation Account Allocation Committee in the month of May after spending N111.966billion to subsidize petrol consumption in March.
However, Obateru had clarified that, “the revenue projection contained in the letter to the Accountant-General of the Federation being cited in the media pertains only to the Federation revenue stream being managed by the corporation and not a reflection of the overall financial performance of the corporation.
“NNPC maintained that “it is conscious of its role and was doing everything possible to shore up revenues and support the federation at all times.
“The shortfall will be remedied by the corporation as it relates only to the Federation revenue stream being managed by the NNPC and does not reflect the overall financial performance of the corporation.
“The NNPC remains in positive financial trajectory for the period in question,” Obateru stated.
He said NNPC would continue to pursue and observe “its cost optimisation process with a view to maximizing remittances to the Federation Account.”

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Tribunal Verdicts, Affirmation Of People’s Trust In Us – Fubara

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Rivers State Governor, Sir Siminalayi Fubara, has described the judgment of the Governorship Election Tribunal that upheld his election victory as a confirmation of the trust expressed in him by Rivers people.
This was contained in a statement signed by the Senior Special Assistant on Media to the Governor, Boniface Onyedi, in Government House, Port Harcourt.
At a brief thanksgiving service held at the Chapel of Everlasting Grace, Government House, Port Harcourt on Monday night, which was attended by some members of the State Executive Council and political leaders, Fubara restated his commitment not to betray the expectations of Rivers people on his administration.
He explained that the place of God in his administration would not be compromised, which is why they had gathered to thank Him for His unceasing direction and guidance.
He added that his emergence as governor was made possible at the polls by God, insisting that His favour has now been affirmed by the tribunal.
Fubara particularly thanked the immediate past Governor of Rivers State and Minister of Federal Capital Territory (FCT), Chief Nyesom Wike, for his immense support to his governorship bid, following through the stages of the legal contest.
He also thanked the Rivers people for rallying behind him to allow the will of God to prevail for the State.
The governor, who solicited for more support, enjoined Rivers people to be patient with his administration, promising to deliver good governance that will make their lives better.
In his exhortation, the Chaplain of the Chapel of Everlasting Grace, Government House, Port Harcourt, Rev. Barasin Ogan, said it is good to give God thanks, which is what the governor has done.
Ogan declared that the hand of God is upon Fubara and will strengthen him to work in mercy, delivering justice without bias and showing mercy without ceasing.

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Senate Warns Tinubu Against Extra-Budgetary Spending

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The Senate Committee on Gas has urged President Bola Tinubu to present a 2023 Supplementary Budget to the National Assembly to commence his Compressed Natural Gas (CNG) project.
Chairman of the Committee, Senator Jarigbe Jarigbe made this known in a statement in Abuja, yesterday, barely 48 hours after Tinubu announced measures to mitigate the effect of fuel subsidy removal on Nigerians.
The chairman, who lauded Tinubu for the CNG initiative, however, warned that it would be illegal to spend taxpayers’ money or money without approval by the National Assembly and other projects in the gas value chain, which is cheaper than the use of fossil fuel.
The federal lawmakers also advised against extra-budgetary expenditure through ‘Ways and Means,’ saying the legislature is ready to support and bring succour to Nigerian people.
“The noble initiative will ameliorate the hardship of the citizens. Also, the President needs to come up with a supplementary budget to enable the government to fund the gas value chain, including the provision for CNG infrastructure and CNG vehicles, and the workshops and training would need to be funded,” the senator said.
“The President should not embark on extra-budgetary expenditure because it will be inconsistent with the provisions of the law”, he cautioned.
Jarigbe noted that the National Assembly, under the leadership of Senator Godswill Akpabio, was poised to support the great programmes of Tinubu’s administration, adding that a 2023 supplementary budget would be most appropriate, instead of the ‘Ways and Means’ approach of the previous administration, which is currently a major issue of contention in the Central Bank of Nigeria.

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NDIC Begins Payment Of N16bn To 20 Defunct Banks’ Shareholders

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The Nigeria Deposit Insurance Corporation (NDIC) has announced the declaration of N16.18 billion in liquidation dividends to depositors, creditors, and shareholders of 20 banks in liquidation.
The announcement comes after impressive recoveries from debtors and realisation of assets of banks in liquidation.
The corporation’s Director, Communication and Public Affairs, Bashir Nuhu, made this known in a statement on Monday.
The NDIC said it had commenced verification and payment of stakeholders covered by the declarations within 30 days, starting from September 28.
The statement reads partly, “It is instructive to note that the ongoing payment is sequel to earlier payment of various sums which cumulatively amounted to N45.45bn as liquidation dividends in respect of the 20 banks as at July 2023.”
The closed banks covered by the exercise include Liberty Bank, City Express Bank, Assurance Bank, Century Bank, Allied Bank, Financial Merchant Bank, Icon Merchant Bank, Progress Bank, Merchant Bank of Africa (MBA), and Premier Commercial Bank.
Others are North South Bank, Prime Merchant Bank, Commercial Trust Bank, Cooperative and Commerce Bank, Rims Merchant Bank, Pan African Bank, Fortune Bank, All States Trust Bank, Nigeria Merchant Bank, and Amicable Bank in-liquidation.

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