Connect with us

Finance

Nigeria oil firm,NNPC overpaid Goodluck Jonathan’s government US$750M-BBC

Published

on

…as President orders full release of PwC Audit

By Yemie ADEOYE

ABUJA-AN audit has found that Nigeria’s state oil company, the Nigerian National Petroleum Corporation NNPC overpaid the government $750m (£490m), at a time when it was accused of massive corruption, according to the British Broadcasting Corporation, BBC.

NNPC Sues for Sustenance of Industrial Harmony The audit followed allegations in 2013 by then-central bank chief Lamido Sanusi that the company had failed to account for about $20bn.

President Goodluck Jonathan strongly denied the allegation, and ordered a respected firm to conduct an audit.

His office released the report as he prepares to step down in a month.

Ex-military ruler Muhammadu Buhari will be inaugurated on 29 May after he defeated Mr.Jonathan in elections last month.

He has vowed to tackle corruption in Nigeria, Africa’s main oil producer where most people live on less than $2 a day.

‘Accounting errors’

The BBC’s Chris Ewokor in the capital, Abuja, says the findings suggest that Mr Sanusi’s claims were exaggerated.

However, many Nigerians still believe that corruption in the oil sector industry runs deep, our correspondent adds.

The audit into the accounts of the Nigerian National Petroleum Corporation (NNPC) was carried out by PwC, one of the world’s leading accounting firms.

It stated that it could not vouch for the integrity of the information it was given when it conducted the audit, our reporter says.

PwC said the oil company should be overhauled and pay the government about $1.5bn arising from duplicate claims and accounting errors.

Mr Sanusi, then a respected banker, caused shockwaves in September 2013 when he claimed that the NNPC had failed to account for $20bn of oil sold between January 2012 and July 2013.

He was forced out of office following a heated row with Mr Jonathan and the NNPC over the allegation.

Mr Sanusi, now a powerful Muslim traditional leader in Nigeria, has not commented on PwC’s findings.

However, President Goodluck Jonathan had on Monday said his administration had nothing to hide in respect of the claim by a former Central Bank of Nigeria Governor,   Lamido Sanusi, that   $20bn oil money was not remitted to the Federation Account by the Nigerian National Petroleum Corporation.

To prove this, he said he had directed that the full report by PriceWaterHouse which was commissioned to carry out a detailed investigation into the activities of the NNPC be made public immediately.

Jonathan, in a statement in Abuja by his Special Adviser on Media and Publicity,   Reuben Abati,   also described   the allegation by the All Progressives Congress that his officials were embarking on last minute illegal actions as “unfortunate and uncharitable.”

Buhari had while receiving an APC delegation from Adamawa State on Sunday, expressed surprise that instead of probing the allegation by Sanusi ,who is now the Emir of Kano, the Jonathan-led Peoples Democratic Party administration chose to fire him.

He stated that since Sanusi’s claim was documented, his administration would take a look at it after the May 29 handover date.

Buhari said, “On the issue of corruption, I heard that some people have started returning money. I will not believe it until I see for myself.

“You all remember what the Emir of Kano talked about when he was the governor of the CBN. He said $20bn, not N20bn, was unaccounted for; they said it was a lie. Instead of investigating it, they sacked him. And God in his infinite mercy made him the Emir of Kano. In any case, that is what he wanted. And since this was documented, our administration will take a look at it.”

Sanusi had written a letter to Jonathan that $49bn was not remitted to the Federation Account by the NNPC.

But following the controversy which the letter generated, a committee was set up to reconcile the account.

Sanusi later recanted and said the unremitted fund was $12bn. He later changed the figure to $20bn.

But Abati, in his   statement, said Jonathan was concerned by the continuing suggestions that his administration had anything to hide on the allegation.

The statement read in part, “President Jonathan is also deeply concerned by the continuing suggestions that his administration still has anything to hide about the unproven allegation that about $20bn is unaccounted for by the NNPC during his tenure.

“To lay the matter to rest, President Jonathan in line with Section 7(2) of the NNPC Act, has directed that the full report of the PWC Forensic Audit of the NNPC accounts be released immediately to the public so that all Nigerians will be properly informed on the matter.”

 

 

 

Business

Nigeria pays US$4.9 billion on petrol subsidy in 2024- NNPCL

It was however noted by Biztellers.com.ng, that although subsidy is back in effect, the main reason for that is the increasingly weak state of the Naira and the country’s extreme dependence on products importation. Also unlike the previous subsidy era, where several oil marketers were getting free subsidy refunds for unverified product importation, this subsidy era is witnessing only one importer, the NNPCL, which in effect is the sole receiver of government subsidies. 

Published

on

Yemie ADEOYE

INSPITE of the official position of the Nigerian government that the controversial petrol subsidy is gone for good as announced by the President on assumption of office, the state owned Nigerian National Petroleum Corporation Limited, NNPCL has disclosed that petrol subsidy is still fully operational in Nigeria, although, under a different identity.

Umar Ajiya, Chief Financial Officer at the NNPCL, disclosed that it cost the company a staggering N7.8 trillion (US$4.9) to cover this price gap in the first seven months of 2024.

Rather than simply referring to these claims as subsidies, he stated that the company is merely managing the price difference in petrol imports on behalf of the federation, stressing that this should not be misconstrued as a return to subsidy payments.

This revelation has reignited discussions on whether the NNPC is indirectly offering subsidies, a concept typically defined as selling a product below its cost price.

Documents reviewed by Biztellers.com.ng showed that the term “subsidy” was used extensively in official correspondence between the NNPCL and the presidency, particularly in reference to the “shortfall.”

Recall that President Bola Tinubu reportedly approved NNPC’s request to utilize the 2023 final dividends due to the federation to offset these costs.

However, during a media briefing on Monday about the company’s 2023 audited financial statements, Ajiya refuted claims that the NNPC is involved in any subsidy scheme.

Ajiya further disclosed that the Nigerian government owes the NNPC N7.8 trillion ($4.9 billion) in subsidy-related debts for the period from January to July 2024.

In furtherance of his clarification to the News Agency of Nigeria (NAN), Ajiya insisted that no subsidy payments have been made to any marketer in the last nine years, citing the NNPC’s role as the sole importer of petrol under supply contracts.

He said, “In the last eight to nine years, NNPC Ltd. has not paid anyone a dime as a subsidy; no kobo has been disbursed by NNPC Ltd. in the name of subsidy. No marketer has received any payment from us for subsidy.”

“What has been happening is that we have been importing PMS, which has been landing at a specific cost price, and the government tells us to sell it at half price. So the difference between the landing price and that half price is a shortfall.

“And the deal is between the Federation and NNPC Ltd., to reconcile, sometimes they give us money, so there is no money exchanging hands with any marketer in the name of subsidy.”

Ajiya remained silent on how much of the $4.9 billion could have been remitted to the federation account if the NNPC had not been covering the “shortfall.”

It was however noted by Biztellers.com.ng, that although subsidy is back in effect, the main reason for that is the increasingly weak state of the Naira and the country’s extreme dependence on products importation. Also unlike the previous subsidy era, where several oil marketers were getting free subsidy refunds for unverified product importation, this subsidy era is witnessing only one importer, the NNPCL, which in effect is the sole receiver of government subsidies.

 

Continue Reading

Banking

CBN Denies Currency Devaluation

Published

on

CBN Pegs Interest Rate at 14%

 

The Central Bank of Nigeria (CBN) has refuted claims of devaluing the.

 

Earlier reports suggested that the CBN had devalued the Naira, lowering its exchange rate from N631 to the dollar, compared to the previous day’s rate of N461.60 at the Importers and Exporters (I&E) window.

 

However, the Central Bank of Nigeria (CBN) released a statement on Thursday through its Acting Head of Corporate Communications, Dr. Isa Abdulmumin, categorizing the report as false information.

 

In the statement titled ‘CBN Has Not Devalued The Naira’, he said the attention of the apex bank was drawn to the news report by an Abuja based newspaper edition of June 1, 2023, titled “CB Devalues Naira To 630/51”.

 

However, the CBN stated categorically that the news report was replete with outright FALSEHOODS and destabilizing innuendos, ‘reflecting potentially willful ignorance of the said medium as to the workings of the Nigerian Foreign Exchange Market.’

 

“For the avoidance of doubt, the exchange rate at the Investors’ & Exporters (I&E) window traded this morning (June 1, 2023) at N465/USS1 and has been stable around this rate for a while.

 

“The public is hereby advised to ignore the news report by Daily Trust in its entirety, as it is speculative and calculated at causing panic in the market,” the CBN spokesman added.

 

He, therefore, advised media practitioners to verify their facts from the Central Bank of Nigeria before publishing in order not to misinform the public.

 

Continue Reading

Banking

BREAKING: CBN Increases Interest Rate By 0.5%

Published

on

CBN Pegs Interest Rate at 14%

 

The interest rate in Nigeria has been raised to 18.5 percent, up by 0.5 percent, from 18 percent where it was pegged in March 2023.

 

The Central Banks of Nigeria’s (CBN) Monetary Policy Committee (MPC) resolved to this effect at its third meeting of 2023 in Abuja, on Wednesday.

 

Governor, CBN, Godwin Emefiele, made the disclosure in the communiqué of the MPC’s meeting,  thereafter.

 

While engaging the media at the end of the two-day meeting, Emefiele, said the committee voted to keep the asymmetric corridor at +100 and -700 basis points around the MPR.

 

In the view of the MPC, rising inflation rate is traceable to the high energy cost and challenges around the supply chain, among others, which lie outside the corridors of the CBN.

 

Emefiele said, “The current trend in price development would continue to be monitored by the bank with greater collaboration with fiscal authority to address the drivers of inflation.”

 

Biztellers reports that the CBN had effected six consecutive interest rate increases, which has seen the rate move from 11.5 percent in March 2022 to 18.5 percent in May 2023.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.