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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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FG announces April deadline for completion of East-West Road

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The Federal Government has directed the contractor handling the Eleme section of the East-West Road to expedite drainage work to meet the April deadline for completion.

The Minister of Works, David Umahi, issued the directive during an inspection of the ongoing 15km road upgrade from Eleme Junction to Onne in Eleme Local Government Area of Rivers State.

While commending Reynolds Construction Company Nigeria Limited for the quality of work done, Umahi insisted that the drainage must be prioritised to ensure timely completion.

“RCC has done very well. The work completed in the past two months is more than what was done since the project started. However, the project slowed down significantly when the site manager went on leave. I’m happy to see him back and satisfied with the quality of work RCC is delivering,” Umahi stated.

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He emphasised the need to test existing road shoulders before excavation, warning against unnecessary digging for financial gains.

“The existing shoulder has to be tested throughout. I don’t want them digging up areas filled with sharp sand and stone base just to increase costs. If they don’t test it and request approval for any section they dig, they won’t get paid,” he warned.

Umahi also observed that drainage construction had either stopped or slowed significantly, urging the contractor to redesign and precast drainage systems for quicker installation, even during the rainy season.

“I’m happy with the project’s progress, and I believe they will complete the carriageway by the end of April. However, if drainage work is not completed, the project remains unfinished. They must accelerate drainage work to ensure we clear this carriageway by April,” he stated.

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The minister further directed that any section of the road that has remained untouched for 21 days after concrete casting should be opened to commuters to ease traffic congestion.

“Anywhere that has stayed 21 days since concrete was cast should be opened to road users, starting today. This concrete technology will ensure the road lasts between 50 and 100 years without maintenance or reconstruction. It is a signature project of President Bola Tinubu,” he added.

Umahi also inspected the rehabilitation of the Enugu-Port Harcourt dual carriageway, Section IV (Aba–Port Harcourt), which is being handled by the Chinese Construction Engineering Company.

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Reasons behind extreme heat conditions in FCT, Niger, Kogi – NiMet

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The Nigerian Meteorological Agency (NiMet) has given reasons for the high temperatures residents of the Federal Capital Territory (FCT), Niger, Kogi and few other states are currently experiencing.

The current maximum temperature in the listed states is 40°C and the minimum is 23°C.

The Seasonal Climate Prediction (SCP) released last month by the agency shows that most of the northern and central states would record day-time temperatures ranging between 37°C and 40°C, while parts of Kano, Kaduna, Bauchi, and Plateau states in the North as well as Oyo, Osun, Ogun, Ekiti, Edo, Enugu, Anambra, Ebonyi, Imo, Abia, part of Cross River and Delta states in the South are expected to record temperatures ranging between 34°C and 37°C this month.

The agency attributed the high temperatures to climate change and advised Nigerians to embrace a lifestyle switch.

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Residents of the states experiencing high temperatures are advised to avoid exposure to direct sunlight between noon and 3 p.m.

There are also indications that this year may be hotter than last year, which was described as the hottest year.

NiMet’s Director of Weather Services, Prof. Vincent Weli, announced this while speaking on phone with The Nation yesterday. He said: “Everything is embedded in the climate change theory. Every experience we are having now is a result of climate change. The hotness, in general, is because of climate change.

“Abuja, Lokoja, and Minna are located within the same ecological zone and these towns share the same weather pattern. Whatever happens to Lokoja will affect Minna and Abuja because they are in the same route of the flow of wind and also lie within the same climatic zone. Also, these towns have the same vegetation pattern.

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“So, since they are within the same climatic belt, everything that affects Minna and the FCT will affect Lokoja accordingly. The heat is affecting everywhere, not just these towns mentioned. We said last year was the hottest in the history of the earth but this year already is trying to beat it to become the hottest.

“So, as the year increases, it’s obvious that we are going to have higher temperatures. I don’t know where we are headed with this trend, but something needs to be done to reverse the trend.”

To make the best of the situation, Prof. Weli said: “What can reverse the trend is for us to encourage every activity of man that will reduce the emission of carbon dioxide into the atmosphere, such as the use of electric cars, solar power and planting of trees.

“These will be other sources of energy other than the use of diesel and petrol and other hydrocarbon compounds that we use as sources of power. Also, we should plant more trees to reduce carbon dioxide in the atmosphere. The more we plant trees, the more we reduce carbon dioxide in the atmosphere and the more we increase the oxygen.”

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The NiMet director urged residents of the affected states with high temperatures to take necessary action to overcome the hot weather.

He said: “In order not to experience what we call heat stroke, people should drink more water often, keep themselves off the direct impact of sunlight between 12 p.m (noon) and 3 p.m. If people do not expose their bodies to the direct impact of sunlight, it will reduce water loss from the system.

“So, people should drink more water than necessary. Otherwise, their systems will be dehydrated, and that will cause secondary health issues.”

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JAMB begins sales of  2025 direct entry forms March 12

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Registration for this year’s Direct Entry (DE) form will begin tomorrow, the Joint Admissions and Matriculation Board (JAMB) has said.

The board said the registration process is crucial for those who possess degrees, diplomas, or A-Level certificates and wish to advance their education at their preferred universities.

JAMB’s Public Communications Advisor, Dr. Fabian Benjamin, announced this in a statement yesterday in Abuja.

The statement said the announcement for the commencement of the DE sales followed the successful conclusion of the Unified Tertiary Matriculation Examination (UTME) application sales, which ended on Saturday, March 8.

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“During this period, JAMB recorded a total of 2,030,627 registrations for the 2025 UTME, along with 200,115 for the Mock-UTME and 630 applications for the trial mock,” the statement said.

It added: “JAMB has emphasised the importance of adhering to all entry requirements, warning that serious penalties will be imposed on applications containing false declarations. A special committee will verify all submitted Advanced A-Level Qualifications, and any fraudulent results will lead to prosecution. Additionally, institutions are encouraged to directly verify certificates before considering admissions.

“Registration can only be done at JAMB Professional Registration Centres (PRC).”

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