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NEITI Accuses NNPC Of Not Remitting Bridging Allowances
The Nigerian Extractive Industries Transparency Initiative, NEITI, has accused the Nigerian National Petroleum Corporation, NNPC, of failing to remit to the Petroleum Equalisation Fund Management Board, PEF(M)B, bridging allowances for a significant number of years.
In its Fiscal Allocation and Statutory Disbursement, FASD, Audit for 2012 – 2016, obtained yesterday, NEITI stated that PEF had been unable to make the NNPC to pay for the amount it owed.
Though it did not state the amount the NNPC owed and the period over which the NNPC had defaulted, NEITI said PEF received N381.888 billion from major and independent oil marketers and the Pipeline and Petroleum Marketing Company PPMC, from 2012 and 2016.
According to the NEITI report, a total of N499 billion was received by PEF Management Board (MB) throughout the review period, 2012 to 2016, with N382 billion realised from Bridging allowance; while most of its expense was on claims amounting to almost N303.4 billion.
It noted that receipts in 2012 was N76.8 billion, increasing by 84 per cent to N141.66 billion in 2013, but decreased by 23 per cent to N109.6 billion in 2014.
The report added that receipts also increased by 56 per cent in 2015 to N170.83 billion, while it noted that financial statement for the year 2016 was yet to be finalized and therefore was not included in the analysis.
NEITI said, “With emphasis on NNPC; the fund finds it extremely difficult to ensure that NNPC pays the amount owed to the Fund and as a result, the Fund has outstanding huge amount receivables from NNPC for a number of years.”
The report further stated that while the NNPC remitted N13.535 trillion to the Federation Account from 2012 to 2016, it failed to remit to N373.878 billion to the federation over the same number of years.
In addition to the NNPC default, NEITI said it observed that PEF does not impose penalties promptly on defaulting independent and major oil marketers who failed to pay their contributions.
It added that PEF paid claims to major and independent oil marketers only after deducting the contributions and allowances due from the marketers to PEF(M)B, noting that in some cases, bridging claims were paid to some independent oil marketing companies without deducting the National Transportation Average, NTA, contribution due from them.
“When a marketer makes payment to the Fund resulting from the outstanding amount due, the Fund does not have a system to verify what transactions the amount paid relate. Detailed description is also not included in the bank statement. “Utilization of the Fund is not separated between the core activities and administrative purposes,” it noted.
To address these concerns, NEITI recommended “That the utilization of the Fund’s resources be disaggregated between primary activities, which include settlement of claims and receipt of NTA contributions, from the conventional administrative activities for management of Fund expenses.
“We recommend that management of PEF (M) B should have an aging analysis stating the period to which a marketer can be indebted. After these periods, we recommend that the management should not honor any claims due to independent or major oil marketing company until that company settles all previous indebtedness to PEF (M) B.
“It is also recommended that management should have a comprehensive schedule showing the list of marketers as well as the amount due from each marketer. We recommend that a competent staff be responsible for reconciling the amount paid by the marketers to the transactions to which the amount was due
NEITI described bridging allowance as the payment made by all licensed importers and marketers to PEF, adding that it is paid on the quantity of petroleum imported into the country. Currently, it disclosed that the rate is N6 per liter of imported petroleum products.
PEF is saddled with the responsibility of administering uniform prices of petroleum products throughout the country.
This is achieved by reimbursing a marketer’s transportation differentials for petroleum products movement from depots to their sales outlets in order to ensure that products are sold at a uniform pump price throughout the country.
The source of the fund is from the net surplus revenue recovered from oil marketing companies.
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Soyinka Demands Accountability Over Extra-Judicial Killings
Nobel Laureate, Professor Wole Soyinka, has called on Nigerians to reject silence in the face of extrajudicial killings and other abuses of human rights.
Soyinka stressed that accountability and civic courage remain essential to rebuilding public confidence in the nation’s institutions.
He made the call during the 28th Wole Soyinka Lecture held in Port Harcourt, last Friday as part of activities marking his 92nd birthday.
The lecture, themed “Reclaiming the Nigerian State through Accountability, Justice and Civic Courage,” drew participants from different sectors of society.
The renowned playwright and human rights advocate said the country’s greatest tragedy was not only the unlawful killings carried out by state and non-state actors, but also the silence that often follows such incidents, allowing perpetrators to evade justice.
According to him, indifference by citizens to abuses of power and violations of fundamental human rights has contributed to the persistence of extrajudicial killings and other forms of injustice across the country.
Soyinka said he dedicated this year’s lecture to victims of unlawful killings, noting that the event was intended to honour individuals who had lost their lives as a result of failures within the justice system and society’s inability to protect the sanctity of human life.
He stressed that the lecture was dedicated to what he described as the basic unit of every society – the human being, and urged Nigerians to place greater value on human dignity irrespective of ethnicity, religion or social status.
The Nobel Laureate recalled several incidents of violence, including the fatal shooting and killing of a young man in Ugheli in Delta State by a police officer, and the mob killing of Deborah Yakubu in Sokoto State sometime ago, lamenting that many of those responsible are yet to face justice.
He expressed concern that some perpetrators of violent crimes had openly admitted their actions without fear of prosecution, describing such situations as evidence of serious failures within the nation’s justice system.
Soyinka maintained that when justice is delayed or denied, public confidence in state institutions continues to erode, thereby encouraging further violations of human rights.
Responding to critics who accuse him of promoting religious or ethnic divisions whenever he spoke on such issues, Soyinka dismissed the allegations and pointed out that his advocacy has always centred on the protection of human life and the rule of law.
He urged Nigerians to remain vigilant and continue demanding justice in cases of alleged extrajudicial killings, including the recent shooting of a young man by a police officer, stressing that every life deserves equal protection under the law.
The literary icon also recalled an earlier pledge by a past incoming president to make public the files relating to unresolved assassinations and extrajudicial killings, questioning the status of the promised investigations.
He challenged citizens to continue asking questions about unresolved cases, insisting that justice, accountability and respect for human dignity are indispensable to building a peaceful, democratic and inclusive Nigerian society.
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FAAN Backtracks, Says No Fire Incident At Lagos Airport’s Terminal 2
The Federal Airports Authority of Nigeria (FAAN) has clarified that there was no fire at Terminal 2 of the Murtala Muhammed International Airport, Lagos, contrary to its earlier advisory.
Earlier yesterday, FAAN had announced that a fire incident had occurred at Terminal 2 of the nation’s busiest airport, and assured that its Aerodrome Rescue and Firefighting Service had been deployed to contain the situation.
There were also reports that activities were briefly disrupted at the airport yesterday after smoke was seen inside parts of the terminal.
Videos circulating online showed passengers kept standing outside the terminal while firefighters responded to the incident.
However, in an update issued less than two hours later by the Director of Public Affairs and Consumer Protection, Henry Agbebire, and posted on FAAN’s official X handle, the authority said preliminary findings showed that the smoke seen at the terminal was caused by the discharge of the facility’s FM-200 fire suppression system.
“Further to our earlier advisory regarding the incident at Terminal 2 of the Murtala Muhammed International Airport, Lagos, the Federal Airports Authority of Nigeria (FAAN) wishes to provide the following update,” the statement read.
“Preliminary findings indicate that there was no fire at the terminal. The smoke observed within the affected area resulted from the discharge of the terminal’s FM-200 fire suppression system. The reason for the activation of the fire suppression system is currently being investigated,” FAAN stated.
The authority said normal operations had resumed at the terminal while investigations were ongoing to determine the cause of the incident.
“Normal operations have since resumed at the terminal, while detailed investigations are ongoing to determine the exact cause of the incident,” the statement added.
The authority thanked passengers, airlines, airport users and other stakeholders for their understanding and cooperation.
FAAN appreciated the understanding and cooperation of passengers, airlines, airport users and all stakeholders, and reiterated its commitment to the safety and security of all airport operations.
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