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FG begins probe of NNPC over N2.7trn fuel subsidy claim
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By Kayode Sanni-Arewa
The Federal Government has begun the proposed audit of the N2.7tn fuel subsidy claim by the Nigerian National Petroleum Company Limited, The PUNCH has learnt.
An audit firm, KPMG had conducted an initial audit reducing the claims from N6tn to N2.7tn.
However, in the new audit, the government said it had approved the engagement of the Office of the Auditor General of the Federation to verify the claims made by the corporation regarding the amount the government owes the oil firm.
This process was confirmed by the Director, Home Finance, Ali Mohammed, during the April 2024 Federal Account Allocation Committee meeting.
The government said an update on the issue would be provided during the May FAAC meeting.
Recall last month that the audit would span from 2015 to 2021, aiming to verify the authenticity of NNPC/Federation Account claims on the N2.7tn while it considered hiring an external audit firm.
On May 30, 2023, a few hours after the “subsidy is gone” declaration by President Bola Tinubu, the NNPCL Group Chief Executive Officer, Mele Kyari, told State House correspondents that the federal government still owes the firm the sum of N2.8tn spent on petrol subsidy.
While saying the NNPCL footed petrol subsidy bills from its cash flow, Kyari said the government had so far been unable to pay back the N2.8tn.
He said “Since the provision of the N6tn in 2022, and N3.7tn in 2023, we have not have not received any payment whatsoever from the Federation.
“That means they (the Federal Government) are unable to pay and we’ve continued to support this subsidy from the cash flow of the NNPC. We are waiting for them to settle up to N2.8tn of NNPC’s cash flow from the subsidy regime and we can’t continue to build this.”
However, a copy of the minutes of the FAAC meeting obtained by our correspondent, however, revealed that the government had begun the audit of the N2.6tn subsidy claim.
The minute read in part, “On the forensic audit covering the period 2015 to 2021 to authenticate NNPC/Federation claims in respect of N2.7tn withheld by NNPC Limited: The Director, Home Finance informed members that the process of the forensic audit of NNPC Limited as reported at the last meeting was in progress. He assured that an update would be provided on the matter at the next meeting.”
Members of the committee also bemoaned the refusal of the NNPCL to comply with the revised exchange rate of N693.50/$1 in converting federation revenue.
According to them, NNPCL has declined to adhere to the revision of the May 2023 Central Bank of Nigeria exchange rate from N436.38/$1 to N621.86/$1, and subsequently to N693.50/$1, as instructed by the CBN.
On the refusal by NNPC Ltd to comply with the revised exchange rate of N693.50/$1 in converting Federation revenue, the Vice Chairman, Post-Mortem Sub-committee, warned that “If NNPC Ltd continues to disregard the use of the agreed rate without presenting any authority to that effect, FAAC will be left with no option but to take appropriate action to recover the Federation funds.”
The minute further read, “At the last meeting of FAAC, it was reported that there was a review of the May 2023 CBN Exchange rate from N436.38/$1 to N621.86/$1 and a further review to N693.50/$1 in line with the directive of CBN. NNPCL was directed to comply with the revised exchange rate of N693.50/$1 and re-compute all the Royalties, Taxes and other revenue items for May 2023 and revert.”
The official informed the meeting that at the April 2024 meeting of the sub-committee, NNPCL complained that the proposed review would result in a refund of N16,829,747,742.96 to the Federation Account by the company.
He concluded that the sub-committee expected that the Federation Account be refunded the amount of the exchange rate but NNPCL used it to defray the subsidy claim. He recommended that FAAC should decide on the matter.
He recalled that the sub-committee had reported the implication of the “weighted average rate” on PMS computation and discovered that the exchange rate differential for the period of June to December 2023 was N937,961,442,969.83, contrary to the NNPCL claim of N1,675,920,811,819.
He stated that the Sub-committee recognised only the exchange rate that was backed by law and that NNPCL was mandated to provide authorisation for the use of weighted average exchange rate on PMS Dollar payments. He disclosed that NNPCL in response, requested the Sub-committee to write the company officially to enable the release of the NEC approval on the issue.
He suggested that NNPC Ltd should be called to order and hoped that the matter could be resolved amicably with the company.
The Oyo State Commissioner for Finance, Akinola Ojo, also proposed that NNPC Ltd should be made to refund the money even if by next month, a resolution could not be reached on the issue.
Source: The Punch
News
NCC hosts 185 girls on ICT industrial excursion
The Nigerian Communications Commission (NCC) has supported the Federal Government’s Girls in ICT empowerment initiative by hosting 185 students on an industry excursion.
NCC Director of Public Affairs, Nnenna Ukoha, disclosed this in a statement on Sunday in Abuja.
She said the tour was designed to inspire digital skills development and encourage future careers in technology.
The initiative was championed by the Ministry of Communications, Innovation and Digital Economy.
The programme aims to equip young Nigerians, particularly girls, with digital knowledge and relevant technology skills.
Ukoha said participants were selected by the ministry from across the country’s geopolitical zones.
She said the students were chosen for a competition promoting digital inclusion and greater participation of girls in Information and Communication Technology (ICT).
According to her, some participants were also drawn from Science, Technology, Engineering and Mathematics (STEM) disciplines.
“The visit to the Commission formed part of activities organised by the Ministry under the National Girls in ICT Programme.
“It is an initiative aimed at bridging the gender gap in technology through digital skills, mentorship opportunities and exposure to innovation,” she said.
Ukoha said participants learned about developments in telecommunications from 1886, when colonial authorities established communication facilities for administrative purposes.
She said the students were also introduced to the history of telegraph services linking Lagos with West Africa and Europe through submarine cables.
According to her, the tour highlighted the telecommunications landscape at Independence in 1960.
She said Nigeria then had only 18,724 telephone lines serving an estimated population of about 40 million people.
“The students were also briefed on post-Independence development plans and the operations of the former Department of Posts and Telecommunications.
“They also learned about Nigerian External Telecommunications Ltd. and the establishment of NITEL in 1985,” she said.
Ukoha said NITEL was created to coordinate internal and external telecommunications services across the country.
She noted that a major attraction during the visit was the display of historical artefacts preserved at the NCC Museum.
Among the exhibits were a Post Office Counter and Sorting Racks introduced in Lagos in 1852.
Other artefacts included the Grand ‘T’ Key used in the nineteenth century Lagos Post Office.
The collection also featured leather mail bags from 1863 and Drop Bag fittings from the late twentieth century.
Students viewed a 511A Letter Scale, an Improved Dynamometer Scale, telegram machines and the Teleprinter T100.
Additional exhibits included a Cordless PBX system, Digital Card Phone and other communications equipment.
Speaking during the tour, NCC Executive Vice Chairman, Dr Aminu Maida, said the initiative aligned with the Commission’s digital literacy objectives.
Represented by Director of Research and Development, Babagana Digima, Maida said the museum linked past and present generations.
He said the experience would help young people appreciate the sector’s transformation from analogue systems to the digital age.
According to him, understanding telecommunications history would inspire participants to contribute to future innovation.
Maida said exposing young people to technological advancement was essential for developing leaders for Nigeria’s digital economy.
“The whole idea is to engage the younger generation and show them what communication is all about.
“This museum preserves the history of communications and showcases the evolution from postal services to telegraphy and digital technology.
“We want to spark the curiosity of young people and help them understand how far the sector has progressed.
“When they see the past and the present, they can imagine the future and contribute to shaping it,” he said.
During the tour, NCC officials guided participants through exhibits documenting key milestones in Nigeria’s telecommunications history.
The students also explored the evolution of the communications sector and its contribution to national development.
News
Middle East conflict: Israel Launches Retaliatory Strikes on Iran in renewed violence
Israel has launched airstrikes on Iran in retaliation for waves of missiles fired at its northern regions on Sunday.
The development marked a day of renewed violence in the Middle East after a fragile ceasefire.
Iranian state television reports that the sound of explosions was heard in Isfahan, Karaj, Tabriz and Tehran.
The strikes occurred after Iran’s Islamic Revolutionary Guard Corps, IRGC, said it had targeted the Ramat David Airbase in northern Israel with ballistic missile fire on the evening of June 7.
The IRGC claimed that Israel used air-launched ballistic missiles in its attack on Monday morning.
The Israel Defense Forces, IDF, said it identified missiles fired from Iran toward northern Israel and defensive systems are operating to intercept the threat.
“A short while ago, the Israeli Air Force struck military targets belonging to the Iranian terror regime in western and central Iran,” the Israeli military stated.
News
If a Thief Tells You to Go to Court, His Brother Is the Judge — Jonathan
Ex- President Goodluck Jonathan has criticized what he described as a growing culture among some government institutions of dismissing public concerns by directing aggrieved citizens to seek redress in court.
Speaking at a recent public event, Jonathan expressed concern over what he called declining standards in public institutions and the increasing tendency of officials to rely on the judiciary whenever allegations of wrongdoing are raised against them.
The former president cited an East African proverb to illustrate his point, saying, “If a thief tells you to go to court, he knows that his brother is the judge.”
According to Jonathan, the saying reflects public perceptions that some individuals who engage in wrongdoing may have confidence in receiving favorable outcomes through compromised systems.
“We see government institutions doing the wrong thing and telling people to go to court,” Jonathan said. “There is this saying in East Africa that if a thief tells you to go to court, he knows that his brother is the judge.”
His remarks come amid ongoing debates over accountability, transparency, and public trust in government institutions, with critics frequently raising concerns about the handling of political and administrative disputes through the judicial process.
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