News
Oil, gas companies owe FG $6bn, N66bn in unpaid revenues – NEITI report
The liabilities of oil companies to the Federation have increased to $6.175bn as of June 2024, a new report by the Nigerian Extractive Industries Transparency Initiative has stated.
It noted that in last decade, the Federal Government HAD spent a total sum of N15.8tn on price differentials and under-recovery (subsidy) on the importation of 200.85 billion litres of petrol into the country.
This revelation was contained in the 2022/2023 oil and gas industry report, presented by the agency on Thursday in Abuja. The report’s details were based on an audit of the petroleum industry conducted by the agency during the review period, according to the NEITI Executive Secretary, Dr Orji Ogbonnaya.
“A total of N15.87tn has been claimed as under-recovery/price differentials between 2006 and 2023, with 2022 recording the highest of N4.714tn,” the report read in part.
In his address at the event, Orji said the released report was not just a document but a call to action, marking a significant milestone in the ongoing efforts to promote transparency, accountability, and good governance in Nigeria’s extractive sector.
“This report, produced by the Nigeria Extractive Industries Transparency Initiative, comes at a critical time when the nation is intensifying its reforms in the oil and gas sector. The report provides valuable insights that will help guide policy, encourage robust public debate, and ultimately improve governance in the management of our natural resources,” he said.
Orji further noted the report contains several key findings and recommendations, which include the identification of revenue leakages, the need for improved compliance with regulatory frameworks, and suggestions for increasing transparency in oil and gas operations.
An analysis of the report showed that the government expended a considerable amount of its resources to pay for price differentials, also known as subsidies, between 2014 and 2023, while its petrol imports surged yearly increasing the cost of subsidies.
The report disclosed that the government paid N3.01tn for the petrol subsidy in 2023 compared to N4.71tn paid in 2022.
It stated that a total of 23.54bn litres of PMS (Premium Motor Spirit) were imported into the country in 2022, while 20.28bn litres were imported in 2023. This represents a reduction of 3.25bn litres, or a 14 per cent decline, following the removal of the subsidy.
“A detailed 10-year trend analysis (2014–2023) shows that the highest annual PMS importation into the country, 23.54bn litres, was recorded in 2022, while the lowest, 16.88bn litres, was recorded in 2017. A total of N15.87tn was claimed as under-recovery/price differentials between 2006 and 2023, with the highest amount, N4.714tn, recorded in 2022,” it stated.
A further breakdown showed that N480bn was spent as subsidies for the importation of 18.93bn litres of fuel in 2014. This figure reduced to N320bn despite an increase amount of fuel import of 19.27bn litres in 2015.
In 2016, the NEITI said the government spent N100bn to import 18.76bn liters of fuel while N140bn was disbursed for the for the import of 16.88bn liters of petrol products in 2017.
However, by the following year of 2018, the figure for subsidy increased drastically by N580bn to N720bn, for the import of 20bn liters. The figure dropped sharply to N580bn for an increased import of 20.60bn litres in 2019.
By 2020, the amount spent on subsidy reduced further to N130bn. The government imported a total sum of 22.05bn litres within this period.
In contrast, the government spent N1.16tn as subsidy on the import of 22.54bn liters in 2021, disbursed N4.71tn as a price differential for the import of 23.54bn liters in 2022, and N3.01tn for the import of N20.28bn liters in 2023.
It added that liabilities owed to the federation include $6.071bn and N66.4bn in unpaid royalties and gas flare penalties owed to the Nigerian Upstream Petroleum Regulatory Commission by August 31, 2024.
Additionally, there are outstanding petroleum profit taxes, company income taxes, withholding taxes, and VAT owed to the Federal Inland Revenue Service amounting to $21.926m and N492.8m as of June 2024.
Reacting to this, the Chairman of the Economic and Financial Crimes Commission, Olanipekun Olukayode, pledged to recover the owed debts of $6bn and N66bn to the federation.
The EFCC chairman also announced that he had approved the transfer of over N1bn derived from funds recovered through previous NEITI audits into the Federation Account.
Olukayode said, “Over the years as an anti-corruption agency in the country we are part of the success of the work of NEITI. Where the work stops at the level of presenting this report, then we take off from there to ensure that the recommendations therein and revelations therein particularly as relates to criminal infractions, and violation of our financial laws, it is taken up seriously.
“I am also happy to announce to you that as of yesterday (Wednesday), I still approved that over a billion so remitted to the Federal Government account as a result of the work of the last report of NEITI.”
On his part, the Secretary to the Government of the Federation, George Akume, assured stakeholders that the government would continue to grant NEITI the freedom to do fulfill its mandate to the country and the global Extractive Industries Transparency Initiative.
Akume said, “As the Chairman of the NEITI Board, I stand before you today to underscore the Federal Government’s respect for NEITI’s independence. While my role as Chairperson is a testament to the importance the government places on NEITI, it also signifies the commitment to ensure that NEITI operates independently, without interference, as mandated by the EITI standard.
“We have to safeguard this independence with great care and diligence, ensuring that NEITI can operate free from undue influence.”
The Senator representing Taraba Central, Manu Haruna white washed officials of NAFDAC for poor budget presentation during 2025 budget defense on Friday.
In a video, Senator Manu a former Deputy Governor of Taraba State opened the underbelly of NAFDAC on improper presentation of figures in the outlines.
He pointedly told the officials that the presentation was designed to mislead senators.
Watch video below:
The Kano State Commissioner for Local Government and Chieftaincy Affairs, Alhaji Tajo Othman, who was recently in the news for returning N100 million excess fund to the state government, has revealed the reason behind his action.
The commissioner while addressing newsmen in Kano on Friday said his action was influenced by the state governor’s “exemplary leadership style,” adding that in an ideal situation, leaders are always a pace setter for others to follow.
He said he did not expect Governor Kabir Abba Yusuf to reveal the act to the public, but the governor chose to do so during the flag-off of the free uniform distribution to encourage the future generation to be transparent.
He said, “In an ideal governance setting, the leader is a pace setter for others to follow. We have seen the governor’s body language and as such we fall in. That is what exactly happened. it is the wish of the governor that everybody should be as transparent as possible.
“He is a transparent governor and therefore we should be transparent as well. I never expected the governor to go public with it, but I believe the reason behind his announcement is indeed genuine.”
The commissioner added that as the head of the committee for school uniform distribution, the state governor entrusted him with the task and advised the committee to execute it to the best of their ability.
The commissioner who was a retired customs officer was in the news when the Governor Yusuf publicly commended him for returning N100 million in unspent funds from a N2 billion budget earmarked for the production of 798,000 uniforms for pupils of primary 1 in the state.
A new global survey report from Ipsos and Google has shown widespread use of Artificial Intelligence (AI) tools among Nigerian online population.
The study, tagged: “Our Life with AI: From Innovation to Application,” surveyed 21,000 people across 21 countries, and observed that global AI usage has jumped to 48 per cent and excitement about its potential now exceeds concerns (57 per cent vs. 43 per cent, up from 50 per cent / 50 per cent last year).
According to the report, in Nigeria, AI adoption and enthusiasm are even higher, as 70 per cent of the Nigerian online population used generative AI, surpassing the 48 per cent global average. Moreover, 87 per cent are excited about AI’s potential and see its benefits outweighing the risks.
Analysing the report, President of Global Affairs, Google & Alphabet, Kent Walker, said: “AI is starting to deliver magic at scale, making people’s lives easier and better. The survey results show the more people use these tools, the more excited they get about the possibilities and about the personal, professional, and scientific breakthroughs on the way.”
The survey results indicate that optimism about AI is growing within the surveyed online community in Nigeria. Key findings from the survey, show that among survey participants in Nigeria, 70 per cent reported using generative AI in the past year, which is significantly higher than the global average of 48 per cent. A substantial 87 per cent of Nigerian respondents feel that AI’s potential benefits outweigh the associated risks, suggesting a strong belief in the positive impact of AI. A significant 81 per cent of surveyed Nigerian adults believe AI will positively change the economy.
Furthermore, 90 per cent of the survey respondents in Nigeria anticipate AI having a positive impact on science and medicine, demonstrating the widespread belief in the potential of AI to drive progress in these sectors.
According to the report, Nigeria’s online population demonstrates a higher level of excitement and adoption of AI when compared to other regions. The survey indicates: Nigeria is among the top countries in terms of AI usage and excitement about its potential.
This contrasts with more cautious sentiment in some European and North American countries.
The report also said the Nigerian online community saw immense potential for AI in science and medical advancements:
“A significant 90 per cent of survey respondents expect AI to have a positive impact on science and medicine. This is one of the highest rates globally, highlighting the strong anticipation of breakthroughs in these fields through AI,” the report said, and onlinerd that the population in Nigeria recognised AI’s potential to enhance personal and professional development:
“Many believe AI can make people’s lives better by boosting productivity and providing access to resources. Within the Nigerian online population surveyed, there is a prevailing sentiment that supports the fostering of AI advancement rather than restrictive regulations. This suggests that those surveyed are keen to embrace innovation,” the report further said.
The survey results highlight the strong enthusiasm and optimism of the surveyed online population in Nigeria about the role of AI in various aspects of life, particularly in the economy, healthcare, and scientific advancement. The findings suggest that Nigeria’s online community is among the most enthusiastic globally about the transformative potential of AI.
Google has been pursuing AI boldly and responsibly for years. In 2018, Google was one of the first companies to establish AI Principles grounded in beneficial use and avoidance of harm. Two years ago, it unveiled its opportunity agenda, which shard concrete recommendations for governments to ensure AI benefits the broadest range of people possible.
Video: Watch moment Senator Manu tasks NAFDAC officials on poor budget presentation
Why I returned N100m excess fund to Kano Govt Commissioner
Funke Akindele express shock after fan ask about sex life
Just in: Terrorists ambush military truck, kill all soldiers on board
Nigerian Dancer, Korra Obidi Attacked with acid, stabbed on stage In UK
Meet Rare Gem 16 Years Old Chiaza, CEO of ‘RUN MARKET PLACE’
-
News21 hours agoPolice nab street urchin with stolen goods in Ogun
-
Sports19 hours agoSAD: Footballer slumps, dies during match in Osun
-
News11 hours agoHow my 34-Yr-Old graduate son took his own life after NYSC Service Year – Mother
-
News18 hours agoHoR minority caucus sad over demise of principal officer, Onanuga, says lawmaker was quintessential, pragmatic in her duties
-
News21 hours agoReps Concerned About Conversions of Residential Areas To Commercial
-
News18 hours agoMAPOLY may expel 49 final year students over fake results
-
News14 hours agoJust In: TikTok to be yanked off in the US from Sunday, Supreme Court rules
-
News14 hours agoJust in: AIG’s wife kidnapped in Ogun