Connect with us

Government

Undeclared Oil Shipment: FG sues Agip, Total For $635m

Published

on

shipment

The Federal Government is demanding $635 million from two multinational oil companies, Agip and Total, for undeclared crude oil shipped out of the country between 2011 and 2014.

Two cases have been filed at the Federal High court in Lagos by senior lawyer and Senior advocate of Nigeria, Professor Fabian Ajogwu, who had handled several cases for the Federal Government on aviation, defence, energy, and financial services.

Hearing will begin next week before Justice Olatoregun Isola.

And there are indications that Ajogwu will also be filing claims against other multinationals, such as Chevron and Exxon-Mobil.

The Nigerian Government in the two cases is claiming $490,517,280 from TOTAL E&P NIGERIA LIMITED and $145,848,102 from NIGERIA AGIP OIL COMPANY LIMITED.

The statements of claim filed before the court are accompanied by the sworn affidavits of three US based professionals.

The Nigerian Government contends that sometime in 2014,it realised a decline in its oil export revenue. This necessitated an intelligent gathering of data, which showed that part of the reasons for the decline was the under-declaration of crude oil shipments made by some major oil and gas companies operating in Nigeria.

Professor David Olowokere, a US citizen who is the lead Analyst at Loumos Group LLC, a technology and oil and gas auditing firm based in United States of America, Jerome Stanley, a counsel in the law firm of Henchy & Hackenberg, a law firm based in United States of America and head of the legal team engaged by Loumo Group LLC, made the court statements.

The third deponent is Michael Kanko a citizen and resident of the State of Arizona United States of America, who is the founder and the current Chief Executive Officer of Trade Data Services Company.

A forensic analysis of export records from Nigeria and the import records from respective ports of entry at the United States of America used by Agip and Total showed discrepancies.

The volume of crude Oil declared to have been exported from Nigeria, was less than what was declared to have been imported into United States of America via the same shipment by the same vessel on the same bill of lading.

Some other shipments were not declared by the defendants to the requisite authorities, particularly the pre-shipment inspection agents. In some instances, the crude oil shipments were completely undeclared.

The plaintiff (Nigerian Government ) alleged further that all crude oil and gas shipments /exports from Nigeria are required to be declared and inspected by pre -shipment Agents appointed by the Central Bank of Nigeria of revenue due from the crude oil shipments.

The inspection records are to be deposited with ministry of finance Nigeria .

The Nigerian Government averred that high-technology information technology system including satellite tracking systems were deployed by consultants in gathering the various validated information establishing the shortfalls in the export declarations and the import declaration in the country of destination.

Court documents showed that 57 million barrels of Nigeria crude oil was illegally exported by TOTAL E&P NIGERIA LIMITED, NIGERIA AGIP OIL COMPANY, CHEVRON and other companies and sold to buyers in the United States of America between January 2011 and December 2014. The revenue due to Nigeria as a result of this under-declaration and non-declaration is $12,722,600,327($12.7billionDollars) which translates to N2,493,629,664,092(2.5Trillion Naira) at an official rate of 197 Naira to one US Dollar

In one of the instances cited, TOTAL E&P NIGERIA LIMITED shipped crude oil using a vessel by name TRIATHLON to Tostsa Total oil Trading SA of San Felipe Plaza-Suite 2100,5847 SAN FELIPE, 770557-HOUSTON United States at the port of Philadelphia, Pennsylvania, United States of America with a bill of lading number TCVMTRIATIA 1388. The shipment was not declared to the relevant authorities resulting in the shortfall of 968,784 barrels of crude oil in the value of $106,566240 as revenue to the Government,

Another under-declared crude oil was estimated at 491,850 barrels with a value of $54,103,500. It was shipped aboard a vessel named NORTH STAR and sold to BP Products North America of 501 Westlake Park Boulvard, Houston, TX 77079 United States, at port of Texas City, with bill of lading DROESVD23091101.

On two different occasions 768,990 barrels of crude oil, valued at $84,588,910 was loaded on a vessel named AUTHENTIC. It was Shipped to Socap international limited of Cannon’s court, 22 Victoria Street, Hamilton, HM12.Bermuda at the port of Chester Pennsylvanian, United States bill of lading ALMYSVDM17041101 and17041102

The Nigerian government seeks an order of the court compelling Total E&P Nigeria Limited to pay into the FEDERAL GOVERNMENT OF NIGERIA account with the Central Bank of Nigeria, $245,258,640 being the total value of the missing revenues from the shortfall /under-declared/undeclared crude oil shipments of the Federal Government of Nigeria.

Government also wants the oil firm pay General damages of $245,258,640 and Interest on the said sum at the rate of 21 percent per annum until the entire sum is liquidated.

The case has been adjourned till next week for hearing .

In a separate suit, the Federal Government of Nigeria alleges that NIGERIA AGIP OIL COMPANY LIMITED on 16 June 2014 lifted crude oil on board the vessel named VALUE. The firm shipped the cargo to Philadelphia Energy Solutions of 1735 Market street Philadelphia, PA USA at the port of Wilmington, Delaware, United States of America with Bill of lading number SEUK9HA21304143.

Government claims that the shipment was not declared to relevant authorities resulting in the shortfall of 175,334 barrels of crude oil in the value of $38,573,561as revenue to Federal Government of Nigeria.

On 27 June,2011,Nigerian Agip Oil Company limited lifted crude oil on board a vessel named COSMIC and shipped same to ENI TRADING & SHIPPING B.V. of Strawinskylaan 1641-Tower C/16 1077C XX. Again, government claims that the shipment was not declared to the relevant authorities resulting in a shortfall of 467,614 barrels of crude oil in the value of $107,274,990 as revenue to the Federal Government

Despite letters written by the legal representative of the Federal Government for payment of the shortfall, the company had failed to make any payments to the Federal Government.

The Federal Government of Nigeria now claims against Nigeria Agip Oil company limited:

*An order compelling the company to pay into Federal Government of Nigeria ‘so account with central bank of Nigeria the total sum of $145,848,551being the total value of the missing revenues from the shortfall/under declared/undeclared crude oil of the Federal Government

*Interest at the rate of 21 per cent per annum until the entire sum is liquidated.

*General damages in the sum of $145,848,551.and the cost of this legal action.

There are imminent claims against other Oil exploration companies including Chevron.

 

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Government

NIMC Announces Launch of Three National ID Cards to Boost Identity Management

Published

on

The National Identity Management Commission (NIMC) has unveiled plans to launch three new national identity cards.

These cards are aimed at providing improved access to government services and bolstering identification systems across Nigeria.

The three new national identity cards, as disclosed by Ayodele Babalola, the Technical Adviser, Media, and Communications to the Director-General of NIMC, will include a bank-enabled National ID card, a social intervention card, and an optional ECOWAS National Biometric Identity Card.

Babalola explained that these cards are tailored to meet the diverse needs of Nigerian citizens while fostering greater participation in nation-building initiatives.

In an interview, Babalola outlined the timeline for the rollout of these cards, indicating that Nigerians can expect to start receiving them within one or two months of the launch, pending approval from the Presidency.

The bank-enabled National ID card, designed to cater to the middle and upper segments of the population, will offer seamless access to banking services within the specified timeframe.

Also, the National Safety Net Card will serve as a crucial tool for authentication and secure platform provision for government services such as palliatives, with a focus on the 25 million vulnerable Nigerians supported by current government intervention programs.

This initiative aims to streamline the distribution process and ensure efficient delivery of social services to those in need.

Furthermore, the ECOWAS National Biometric Identity Card will provide an optional identity verification solution, facilitating cross-border interactions and promoting regional integration within the Economic Community of West African States (ECOWAS).

The announcement comes on the heels of NIMC’s collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS) to develop a multipurpose national identity card equipped with payment capabilities for various social and financial services.

This collaborative effort underscores the commitment of key stakeholders to foster innovation, cost-effectiveness, and competitiveness in service delivery.

Babalola stated that the new identity cards aim to address the need for physical identification, empower citizens, and promote financial inclusion for marginalized populations. With a target of providing these cards to approximately 104 million eligible applicants on the national identification number database by the end of December 2023, NIMC is poised to revolutionize the identity management landscape in Nigeria.

The implementation of these programs aligns with broader efforts to drive digital transformation and improve access to essential services for all Nigerians.

Babalola highlighted the multifaceted benefits of the new identity cards, including their potential to uplift millions out of poverty by facilitating access to government social programs and financial services.

While the launch date is set tentatively for May pending presidential approval, NIMC remains committed to finalizing the necessary details to ensure a smooth rollout of the new identity cards.

The introduction of these cards represents a significant step forward in NIMC’s mission to provide secure and reliable identity solutions that empower individuals and contribute to the socio-economic development of Nigeria.

Efforts to reach Kayode Adegoke, the Head of Corporate Communications at NIMC, for further insights on the initiative were unsuccessful at the time of reporting.

As Nigeria gears up for the launch of these innovative identity cards, stakeholders express optimism about the potential positive impact on identity management, financial inclusion, and socio-economic development across the country.

Continue Reading

Government

Nigeria Launches New National ID Card to Enhance Access to Social and Financial Services

Published

on

National-eID-card

The Federal Government of Nigeria has announced the launch of a National Identity Card with integrated payment and social service functionalities.

This initiative, spearheaded by the National Identity Management Commission (NIMC) in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), aims to provide Nigerians with a single, multifunctional card that combines identification, payment, and access to various government and private sector services.

The new National ID card backed by the NIMC Act No. 23 of 2007 is poised to become the country’s default identity card, serving as a tangible proof of identity for citizens and legal residents alike.

With features aligned with International Civil Aviation Organization (ICAO) standards, including a Machine-readable Zone (MRZ) and biometric authentication capabilities, the card offers robust security and verification mechanisms.

One of the most significant aspects of the new ID card is its payment functionality. Cardholders will have the ability to link their cards to bank accounts, enabling them to conduct debit and prepaid transactions seamlessly.

This feature is expected to enhance financial inclusion efforts, particularly for the unbanked and underbanked populations in Nigeria.

Also, the card will grant holders access to a wide range of government interventions programs, including travel, health insurance, microloans, agriculture initiatives, food subsidies, transport benefits, and energy subsidies.

By consolidating these services onto a single platform, the government aims to streamline administrative processes and improve service delivery efficiency.

To ensure widespread accessibility, the NIMC has outlined various channels for obtaining the new ID card, including online applications, commercial banks, participating agencies, and NIMC offices nationwide.

Continue Reading

Government

New York City Hit by 4.8 Magnitude Earthquake

Published

on

christian dior

New York City, famously known as the “city that never sleeps” was hit by a 4.8 magnitude earthquake.

The tremors reverberated through the towering skyscrapers and bustling suburbs as it sent shockwaves across the densely populated metropolitan area and left residents feeling shaken.

The earthquake, with its epicenter approximately 45 miles west of New York City and 50 miles north of Philadelphia, caught many off guard.

Reports indicate that over 42 million people across the Northeast region may have felt the midmorning quake with reports coming in from as far as Baltimore to Boston and beyond.

The impact of the earthquake was not confined to mere tremors; it resulted in significant damage to several multifamily homes in Newark, New Jersey, displacing nearly 30 residents.

Officials immediately sprang into action, conducting checks on bridges and other major infrastructure to assess any potential structural damage.

Flights were diverted or delayed, Amtrak slowed trains throughout the busy Northeast Corridor, and a Philadelphia-area commuter rail line suspended service as a precautionary measure.

The experience was unsettling for many New Yorkers, with some likening it to the sensation of an explosion or construction accident.

Shawn Clark, an attorney working on the 26th floor of a midtown Manhattan office, described it as “pretty weird and scary,” echoing the sentiments of many who felt the earth move beneath them.

Aftershocks were reported hours later in a central New Jersey township, causing additional concern and producing reports of damage and items falling off shelves, according to Hunterdon County Public Safety Director Brayden Fahey.

The disruption caused by the earthquake extended beyond immediate safety concerns. Cellphone circuits were overloaded as people tried to reach loved ones, and phones blared with earthquake-related notifications during the New York Philharmonic’s morning performance, adding an unexpected twist to the day’s events.

Even as the seismic event rattled New York City, residents and officials alike drew comparisons to past earthquakes, particularly the memorable tremor of August 23, 2011. Registering a magnitude of 5.8, it was the strongest quake to hit the East Coast since World War II, leaving lasting impressions on those who experienced it.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending