• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
AFRIPOL

AFRIPOL

en English
ar Arabiczh-CN Chinese (Simplified)nl Dutchen Englishfr Frenchde Germanit Italianpt Portugueseru Russianes Spanish
  • Home
  • About Us
  • Mission Statement
  • Articles
  • Book Review
  • Archive
  • Contact Us

Okonjo-Iweala summons NNPC over unremitted $8.476b

July 30, 2013 by Admin Leave a Comment

Written by John Ofikhenua – The Nation

Mrs Okonjo-Iweala Photograph: Ramin Talaie/EPA

Okonjo-Iweala summons NNPC over unremitted $8.476b NLNG dividends

NEITI unveils $1.7b exchange rate difference, N175.9b discrepancies

The Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala yesterday summoned the Nigeria National Petroleum Corporation (NNPC) Group Managing Director (GMD), Andrew Yakubu, for the corporation’s refusal to remit a total of $8.476billion as reported by the previous Nigeria Extractive Industries Transparency Initiative (NEITI) audit.

She said the NNPC received $4.84billion as dividends and repayment from the Nigerian Liquiedfied Natural Gas (NLNG), which it was yet to remit to the Federation Account. Besides, the report revealed that the corporation received another $3.99billion without remitting it to the Federation Account.

The minister spoke at the public presentation of the the NEITI 2009-2011 oil and gas physical and audit report in Abuja. She asked the GMD to see her for private discussions on the financial issues. Okonjo-Iweala noted that after a robust discussion with the NNPC boss, she , as the Minister of Finance could afford to depend on the remittance for additional revenue.

Her words: “GMD, you are welcome back. I missed you because I was citing some of the words from NEITI and I said some of us are assembled here (the right people) because they pointed out some remittances from NLNG, amounting to over $8billion for a period of time-2006-2009, which we need to discuss.

“As the Minister of Finance, I don’t want it on the floor here. We need a very robust conversation about this money because I can depend on it as a Minister of Finance that this is additional revenue. “ The minister also drew attention of the stakeholders at the event to the issue of exchange rate.

She said that the areas of discussion with the corporation, included the exchange rate differences, which were not resolved in the declaration of revenue by NNPC. The NEITI chairman, Mr. Ledum Mittee said the NEITI report observed poor inventory management, which accounted for the difficulty in determining balances for imported products.

The report, said Mittee, noted, “NEITI also discovered a lingering worrisome situation where there is no agreed pricing methodology between NNPC and the companies for determination of fiscal values for royalty and PPT computations.

“In addition, the MoU for joint venture partners JV’s which expired in 2008 is yet to be renewed, yet the companies covered by JV are still using the expired MoU in their transactions with Nigeria, resulting in a difference between NNPC and covered entities positions over $1.7billion between 2009-2011, which are reported by the auditors as revenue losses to the Federation.”

On decline of the government crude oil productions, crude liftings and revenue accruable to the Federation, the report identified that there was inadequate funding of the JV operations.

It also noted that all refineries are operating below their name plate capacities resulting in a situation where 80 per cent of crude oil allocated to local refineries is exported for off-shore processing, crude oil and product exchange.

Andrew Yakubu Group Managing Director – NNPC

The chairman explained, “the report has negative consequences on revenue accruable to the Federation Account. According to the report, “the combined loss to Nigeria in the Offshore Processing, Crude and Products Exchange within the period under review was over $866million.”

NEITI disclosed that Nigeria made total subsidy payments of N3trillion to importers of refined petroleum products.

It said: “This is made up of N1.4trillion fuel subsidy claims by the NNPC for the period 2009-2011 and a total of N1.60trillion paid to other marketers during the same period. The report observed that the disparity between subsidy claims paid from the Federation Account and that made by the Petroleum Products Pricing Regulatory Agency (PPPRA) was N175.9billion during the same period.”

Mr Mittee however said Nigeria recorded a total crude oil production of over 2.5billion barrels, an increase of 4.8 per cent over 2006-2008.

Meanwhile, the Group Managing Director of the NNPC has reiterated the commitment of the Corporation to work with the NEITI in the pursuit of its mandate in ensuring transparency and accountability in the oil and gas industry and the entire extractive industry in general.

John Ofikhenua –  The Nation

Filed Under: Strategic Research & Analysis

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

More to See

PhotoNews: Giannis opens luring Greek restaurant in Milwaukee, USA

September 21, 2023 By AFRIPOL

US court grants Atiku’s request and orders the release of Tinubu’s academic records

September 20, 2023 By AFRIPOL

RSS AllAfrica News: Latest

  • South Africa: Business Leaders Join Principals in Plan to Transform South Africa's Ailing Education System
    [Daily Maverick] The Execs Back to School programme goes beyond physical improvements and providing resources to schools, it seeks to instil a mindset of continuous improvement and growth within the education system.
  • Kenya: We Will Not Privatise the Port of Mombasa, President Ruto Affirms
    [Capital FM] Nairobi -- President William Ruto has affirmed that the government is not planning to privatise the Port of Mombasa amid claims from a section of opposition leaders.
  • Angola: Diamond Industry Expects Poor Results in 2023
    [ANGOP] Luanda -- Angola expects poor financial results in the diamond sector this year, because production is not being sold as it should be, the chairman of the Board of Directors of Endiama, José Ganga Júnior, said on Friday.
  • South Africa: Transnet CEO Portia Derby Resigns
    [allAfrica] Cape Town -- Transnet CEO Portia Derby who was appointed to the embattled state-owned entity three years ago, resigned on Friday, September 29, 2023.
  • Nigeria: Groups Urge Govt to Implement Its Women Empowerment Policy
    [Premium Times] The group urged the president to consider the implementation of the policy as a national strategy to "unlock the potential" of Nigerian women and ensure national growth and development.
  • Nigeria: Naira Appreciates At Forex Markets
    [Premium Times] The naira strengthened marginally against the dollar at the official market to close at N755.27/$1 on Friday

Tags

Achebe Africa Anambra Boko Haram Buhari CBN Corona Virus Egypt Igbo IMF Inflation Jonathan Kenya Nigeria Okonjo Iweala Peter Obi Sanusi Senate Soludo South Africa Soyinka United States
  • Facebook
  • Instagram
  • Twitter
  • YouTube

Archives

Footer

Africa Political and Economic Strategic Center, AFRIPOL is foremost a public policy center whose fundamental objective is to broaden the parameters of public policy debates in Africa. To advocate, promote and encourage free enterprise, democracy, sustainable green environment, human rights, conflict resolutions, transparency and probity in Africa.

Recent

  • Atiku And Tinubu Are Going Down And Dragging The Country With Them – Constance Ikokwu
  • Nigerian President’s CSU Diploma Is A Fake  by J. COYDEN PALMER
  • Listen to what Imo Governor Uzodinma is telling the youths !
  • Ireland Gymnastics issues official apology for Black gymnast racism over medal passing over
  • Chiney Ogwumike: Nigerian American WNBA player named to President Biden’s council on African diplomacy

Search

Tags

Achebe Africa Anambra Boko Haram Buhari CBN Corona Virus Egypt Igbo IMF Inflation Jonathan Kenya Nigeria Okonjo Iweala Peter Obi Sanusi Senate Soludo South Africa Soyinka United States

Copyright © 2023 · AFRIPOL