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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.”
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UK, Italy, Turkey, Qatar-bound cocaine, meth consignments intercepted in Lagos, Abuja+Photos
. As NDLEA arrests masterminds at MMIA, Abuja hotel; foils bid to smuggle opioids into Lagos from Ghana
By Kayode Sanni-Arewa
Attempts by drug syndicates to export large consignments of cocaine, methamphetamine and opioids through the Murtala Muhammed International Airport, MMIA, Ikeja Lagos and the Nnamdi Azikiwe International Airport, NAIA, Abuja to the United Kingdom, Italy, Turkey and Qatar have been thwarted by operatives of the National Drug Law Enforcement Agency, NDLEA, who in series of intelligence led operations recovered the illicit drugs and arrested the masterminds.
A total of 13 parcels of cocaine weighing 4.40kg cocaine going to the United Kingdom via Frankfurt on a Lufthansa Airlines flight were intercepted by NDLEA officers at the export shed of the Lagos airport on 5th November 2024 while a businessman linked to the consignment, Ekeocha Anayo Nelson, was tracked and arrested on 8th November.
The bid by another businessman, Adegbite Solomon (aka Obama) to export 7,800 pills of tramadol, 180 tablets of rohypnol, and 60 bottles of codeine to Italy was also foiled at the departure hall of the Lagos airport on Monday 11th November when NDLEA operatives arrested him after recovering the opioids concealed in food and other items while attempting to board an Ethiopian Airlines flight to Italy. He claimed to have travelled to Europe through the Mediterranean Sea and earned a living as a street beggar before delving into logistics business.
Also related is the arrest of another businessman, Anoke Kingsley Roomy with 1,100 pills of tramadol 225mg hidden in his luggage while attempting to board his Ethiopian Airlines flight going to Istanbul, Turkey at the terminal 1 of the Lagos airport on Friday 15th November.
Following credible intelligence, NDLEA officers of the Directorate of Operations and General Investigation, DOGI, and their counterparts from the FCT Command of the Agency on Friday 15th November raided a hotel room at the Federal Housing Authority estate, Lugbe, Abuja, where they arrested two suspects: Omeh Uchenna Jude, 36, and Anene Valentine Chigozie, 34. Recovered from them was 1.8kg methamphetamine, which they were preparing to travel with to Qatar.
Another suspect, Akande Moruf Olasunkanmi, was arrested with 1.8kg methamphetamine by operatives of a Special Operations Unit in NDLEA at his 9 Durojaiye street, Lawanson area of Surulere, Lagos home after weeks of intelligence and surveillance.
In another intelligence led operation, officers of an NDLEA task force on Saturday 16th November foiled the attempt by a trans-border trafficker, Emmanuel Okechukwu Okeke to smuggle 50,000 pills of tramadol 225mg from Ghana into Lagos.
The pills were concealed in the body compartments of a Toyota Hummer Bus belonging to GUO Transport Company, driven by the suspect.
The vehicle was intercepted at Ijanikin area of the Lagos-Badagry expressway while coming from Ghana.
In Edo state, not less than 997kg cannabis was recovered during raids in parts of the state.
While 680kg cannabis and a Sienna bus marked FST-320 AE were seized at a bush path to Oghada forest in Oghada, Orhionmwan LGA, 180.5kg of same substance was recovered from a suspect, Cecilia Ibe, 31, at Ofosu forest, Ovia South West LGA and 136.5kg evacuated from a building in Otuo community, Owan East LGA on Thursday 14th November.
A suspect, Ifejimagha Chinonso was on Wednesday 13th November nabbed with 88.3kg cannabis by NDLEA operatives on patrol along the Lagos-Ibadan expressway while personnel of Kano Command of the Agency on Friday 15th November arrested Ahmed Goni, 30, at Gadar Tamburawa, Kano- Zaria road where they recovered from him 65,730 capsules of tramadol.
In Kwara state, NDLEA operatives arrested a suspect Adio Sulaiman with 120.8kg cannabis and some litres of codeine at Gaa Odota in Ilorin West LGA, while Kelechi Obichere, 42, was nabbed with 75kg cannabis at Eziobodo, Owerri West LGA, Imo state on Thursday 14th November. A total of 563.74 kilograms of same psychoactive substance were recovered from a 60-year-old suspect Anthony Anakabi, following his arrest at Iyalode, Iyana church area of Ibadan, the Oyo state capital.
With the same vigour, Commands and formations of the Agency across the country continued their War Against Drug Abuse, WADA, sensitization activities to schools, worship centres, work places and communities among others in the past week.
These include: WADA enlightenment lecture to students and staff of Government Day Secondary School, Bazza, Adamawa; Community Secondary School, Ogan-Ama, Rivers state; NKST Secondary School, Adikpo, Benue state; Government Secondary School, Tambuwal, Sokoto state; Government Girls Secondary School, Kunchi, Kano; Ebele Chu Group of Schools, Nkpor Onitsha, Anambra; and Army Cantonment Senior Boys High School, Ojo, Lagos state, among others.
While commending the officers and men of MMIA, DOGI, DI, Oyo, Lagos, Imo, Kwara, Kano, and Edo Commands of the Agency for the arrests and seizures, Chairman/Chief Executive Officer of NDLEA, Brig. Gen. Mohamed Buba Marwa (Rtd) stated that their operational successes and those of their compatriots across the country especially their balanced approach to drug supply reduction and drug demand reduction efforts are well appreciated
.
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Brotherhood crisis turns violent as worshippers reject Olumba’s successor
The prolonged succession crisis in a Nigerian Christian religious sect, the Brotherhood of the Cross and Star, has festered on since its founder, Olumba Obu, passed away.
The crisis turned violent recently as angry worshippers in a particular branch in Uyo, Akwa Ibom State, became riotous, destroying the portrait of Olumba’s first son, Rowland, who leads a faction of the sect.
Olumba’s daughter, Ibum, leads another faction.
A video, which is being circulated on WhatsApp groups and Facebook, captured a man in a white cassock yanking off Rowland’s portrait from the wall and smashing it on the floor amid cheers from worshippers.
Rowland’s portrait was hung near Olumba’s, but the angry worshippers did not attack the latter.
“Bring it down!” a woman’s voice could be heard shouting in the background of the video as the man in a white cassock smashed the glass frame on the ground.
“This is who we are worshipping,” a man’s voice could be heard shouting repeatedly as the camera panned and then focused on Olumba’s portrait on the wall.
It is not clear when the incident happened.
Amah Williams, the sect’s spokesperson, said the incident happened in Uyo at the sect’s Nsikak Edouk Avenue branch.
Rowland and Ibum, with hundreds of their followers, are claiming the leadership of the 68-year-old sect after their father’s passing, causing a disastrous split in a once united and strong organisation headquartered in the Biakpan community in Cross River State, Nigeria’s South-south.
‘They are rebels’
Mr Williams, the sect’s spokesperson, told reporters on Saturday in Uyo that those responsible for the incident belong to a breakaway faction called Brotherhood of the Cross and Star New Kingdom Ministry.
He described them as rebels who do not want to accept Rowland’s leadership – he did not call Rowland by name as Olumba’s successor is revered among worshippers as “King of Kings and Lord of Lords, His Holiness Olumba Olumba Obu”.
“They are rebels. They rebelled; they rejected the rulership of the Kingdom of Christ,” Mr Williams told reporters.
“The holy image of our father is what we hold sacred,” he said, apparently referring to the destruction of Rowland’s portrait.
A reporter asked the spokesperson what place Jesus Christ occupies in the Brother of the Cross and Star.
“That same (Jesus) Christ is the one that came with the new name Olumba Olumba Obu,” responded.
“If Olumba were to be a white man, black men would have gone to worship on his feet.”
The over 1 million global members of the Brotherhood of the Cross and Star do not see themselves as a church but as the new Kingdom of God on Earth. They have also refused to admit that their founder had passed away as the sect has yet to announce his passing or publicly conduct his burial.
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Tinubu’s reforms struggling to deliver meaningful results – IMF
Eighteen months after the implementation of Nigeria’s ongoing economic reforms, the International Monetary Fund (IMF) has observed that the fiscal policies introduced by the President Bola Tinubu administration are struggling to deliver meaningful results.
Catherine Patillo, IMF Deputy Director, while presenting a report at the Lagos Business School (LBS) on Friday, reported a mixed performance of economic reforms across Sub-Saharan Africa, with notable successes in countries such as Côte d’Ivoire, Ghana and Zambia.
Nigeria was conspicuously absent from the list of success stories in the region.
The report stated that sub-Saharan Africa’s average economic growth rate is projected to remain at 3.6 per cent for 2024. It noted that Nigeria’s growth rate, pegged at 3.19 per cent, falls below this average.
Patillo said that while macroeconomic imbalances have reduced in several countries, Nigeria has yet to show such progress.
She stated that more than two-thirds of countries have undertaken fiscal consolidation, stressing that while the median primary balance is expected to narrow by 0.7 percentage points alone in 2024, there are notable improvements in Cote d’Ivoire, Ghana, and Zambia, among others.
The report stated, “In contrast, Nigeria’s inflation rate, which slowed briefly in July and August, resumed its upward trend in September, rising further in October.
“At 33.8 per cent, it significantly exceeds the 21 per cent target set for 2024, with analysts predicting further increases in November and December.”
The report also observed Nigeria’s struggles with exchange rate stability, highlighting it as one of the worst-performing nations in that regard.
According to the report, other countries in the region are experiencing reduced foreign exchange pressures but Nigeria’s local currency depreciation and instability remain a concern.
On debt servicing, the report said Nigeria ranked among countries suffering the heaviest fiscal burden.
The IMF noted that rising debt service obligations are consuming substantial portions of revenue, limiting resources available for development.
It stated that in Angola, Ghana, Nigeria, and Zambia, the increase in interest payments alone absorbed a massive 15 per cent of total revenue.
The IMF grouped Nigeria among resource-intensive countries struggling with social and political challenges that hinder reform implementation.
Political unrest, public dissatisfaction, and tight financing conditions were identified as major impediments.
The report noted that resource-intensive countries continue to grow at about half the rate of the rest of the region, with oil exporters struggling the most and further noted that adjustment fatigue, public resistance, and weak communication strategies are undermining the impact of reforms in Nigeria.
The IMF recommended rethinking reform strategies, urging countries like Nigeria to adopt measures that mobilise public support for deep structural changes.
It pointed out the need for greater attention to communication and engagement strategies, reform design, compensatory measures, and rebuilding trust in public institutions.
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