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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.

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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.

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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.”

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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.”

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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.

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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

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Niger Delta Lawyers task NNPCL Boss, Kyari to make Port Harcourt Refinery operational Before End Of September

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By Kayode Sanni-Arewa

The Coalition of Niger Delta Youth On Energy Reforms and Transparency in the Oil and Gas Sector, has urged the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, to ensure that the Port Harcourt Refinery becomes operational before the end of September as he promised.

At a press conference jointly addressed yesterday by Barr. Dickens A. Opu and Barr. Werigbelegha Zinake, the group lamented that, despite the billions of naira that have been earmarked and disbursed for the functionality of the Port Harcourt refinery, the refining plant remains non-operational.

The group expressed concern about the energy crisis in the country caused by the non-functionality of local refineries, continued dependence on the importation of petroleum products, and the resulting cost implications for the country.

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The Lawyers noted that the failure of the Mele Kyari-led management of the NNPC to revamp local refineries has further worsened the country’s energy crisis and impoverished the people of the oil-producing Niger Delta, who are forced to buy fuel at higher rates than most parts of the country.

The group alleged that the Port Harcourt refinery is being planned to be converted into a blending plant. They claim that substandard petroleum products from Russia will be mixed with chemicals and sold to the people of the Niger Delta.

The Lawyers expressed concern over the potential environmental impact of converting the Port Harcourt refinery into a blending plant. They expressed fear that this move could expose the people of the Niger Delta to harmful chemicals from environmental pollution and degradation caused by the waste products released into the environment.

The statement read: “As we may all be aware, all is not well in the oil and gas sector in Nigeria. The level of corruption is suh that if urgent steps are not taken to address the malaise, Nigeria might go into extinction.

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“We say this with all sense of patriotism given the precarious situation in the economic outlook in the country. It is indeed worrisome that an oil-producing country like ours is experiencing an energy crisis occasioned by the non-functionality of our refineries and the continued dependence on the importation of petroleum products and the attendant cost implication for the country.

“It is indeed a shame that successive administrations in the country have done little or nothing to ensure the functionality of the country’s refineries. For example, despite the billions of naira that have been earmarked and disbursed for the functionality of the Port Harcourt refinery, the refining plant remains comatose.

“This is on the heels that over 2 years ago, Mele Kyari the helmsman of the Nigerian National Petroleum Company Limited indeed promised that the Port Harcourt refinery would commence operations on several occasions. This has not happened and it has further plunged the country into an energy crisis.

“The attendant impact on the socio-economic life in the Niger Dental region can only be imagined. A situation where oil-producing communities are made to purchase fuel at a rate higher than most parts of the country is an anomaly perpetuated by the Mele Kyari-led management of the NNPCL. This is indeed a sorry tale in our quest for sustainable growth and development.

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“Those behind this anomaly are indeed bent on further impoverishing the people of the Niger Delta region. The sin of the Niger Delta people as it stands with the present arrangement is that they are considered less important in the socioeconomic standing of the country even though it is an oil and gas producing region in the country, whereas citizens of the country in other parts of the country will be buying at a cheaper rate from Dangote refinery and paying far less for a better product without so many chemicals in it.

“We wish to state that we have it on good authority that the Port Harcourt refinery is being packaged to become a blending plant where substandard petroleum products from Russia will be mixed with chemicals and sold to the Niger Delta people.

“This is not only acceptable, it also shows a gross disdain for the Niger Delta people. Those in authority do not care about the negative impact of this plan on the livelihood of the Niger Delta people. The Niger Delta people would be subjected to untold hardship by paying more for petroleum products, and also the attendant consequence in other critical sectors of the Niger Delta economy.

“The economic value chain around the operations of the Port Harcourt refinery would be greatly disrupted and bring about a regime of hopelessness and the resort to crime and criminality to make ends meet. Let us not forget that the level of crime and criminality of proportional to the economic standing of the people.

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“The move by the Mele Kyari led NNPCL to convert the Port Harcourt refinery into a blending plant for substandard petroleum products from Russia and other European destinations comes with the attendant health implications for the people of the region.

“The people would indeed be exposed to harmful chemicals from environmental pollution and degradation from the waste products that would be released into the environment as a consequence.

“The rot in the administration of the oil and gas sector in Nigeria is phenomenal. The Mele Kyari-led NNPCL has taken the lack of transparency and accountability to another height. The country has lost huge revenues to the activities of the cartel that is aided and abetted by the Mele Kyari-led NNPCL. We are tempted to say that the Niger Delta people have been slated for extinction.

“The Coalition of Niger Delta Youth On Energy Reforms and Transparency in the oil and Gas Sector frowns at such a disposition which is a dangerous trend that must be halted and addressed with a sense of urgency. The Niger Delta people are an important contributor to the revenue generation of the country and as such it must not be treated with disdain and levity.

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“We are therefore calling on the federal government to look into the plight of the Niger Delta people and do all that is necessary to improve the lot of the people through the entrenchment of transparency and accountability in the administration of the oil and gas sector in the country. The first step in this regard is to ensure the full functionality of the Port Harcourt refinery and other refineries in the country.

“The second step is to institute reforms the administration of the oil and gas sector in the country with emphasis on the oil and gas-producing communities that are home to the major source of revenue for the country. The third step is to institute a probe into the administration of the oil and gas sector by the Mele Kyari-led NNPCL.

“We are calling on the relevant authorities to urgently address the lingering issues in the oil and gas sector in Nigeria. The socioeconomic outlook of the country is worrisome and the country does not have the luxury of time as the situation in the country is getting grimmer by the day.

“The time to act is now and it is our firm belief that the relevant authorities would act in the best interest of the Niger Delta people and the country at large.”

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Photos: Emir of Mutum-Biyu hails Senator Manu for installing solar in his palace

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By Mario Deepromoter

Joyful Emir of Mutum-Biyu, His Royal Highness, Alhaji Justice Sani Sulaiman Duna, has hailed Senator Manu Haruna for installing solar in his palace and environs.

Manu who represents Taraba Central Senatorial District has in the last three weeks installed solar energy in the palaces of three palaces in the last two weeks.

Apparently happy with this positive development, the Emir praised the senator for this impactful initiative, recognizing the benefits of alternative energy in addressing power challenges.

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On Monday, a team of engineers completed the installation of the solar system at the Emir’s Palace, marking a significant step in enhancing the quality of life for the Emir and his community. The Emir thanked Senator Manu for his continuous efforts in bringing development to his constituents.

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US Lauds Edo State for Peaceful Governorship Election, Call for Calm

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By Gloria Ikibah 
 
The United States Mission in Nigeria has praised the people of Edo State for the peaceful conduct of the gubernatorial elections held on September 21, 2024. 
 
In a statement released by U.S. Ambassador to Nigeria, Richard Mills Jr., the Mission highlighted the importance of maintaining peace following the announcement of election results.
 
Ambassador Mills emphasised the appeal by Governor Godwin Obaseki for calm and urged all stakeholders, including the Independent National Electoral Commission (INEC), to respect established electoral processes and legal avenues for challenging results.
 
“Transparency and due process are crucial to maintaining public confidence in any democratic system,” the statement reads in part.
 
The U.S. reiterated its commitment to supporting free, fair, and transparent elections in Nigeria and promised to continue monitoring the situation closely.
 
The statement by the U.S. government underscores the importance of respecting electoral outcomes and ensuring any disputes are handled within the bounds of the law.
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