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 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.
As Abuja-Kaduna Train Service Resumes, FG pledges Security of Lives
The federal government of Nigeria has said the Abuja-Kaduna is set for resumption after being suspended for almost two months.
Spokesperson of the Nigerian Railway Corporation (NRC), Yakubu Mahmood said in a statement on Monday that the “decision to resume operations by the government does not mean efforts to secure the safe release of those abducted would be shelved.”
“The government wishes to assure the relatives of the abducted citizens still in captivity that the safe rescue of these passengers is a top priority and not to misconstrue the resumption of train services, like abandonment or nonchalant attitude of the government towards their plight,” the statement reads.
“The federal government will never abdicate its responsibility in rescuing these valuable citizens, however, the government assures of its resolve not to succumb to threats by any faceless group.”
“The resolve to resume train services on the route was reached even as most of the kidnapped passengers are still held captive by abductors,” it added.
Relatives of the abducted passengers had warned the federal government against resuming operations along the route until their loved ones were rescued.
Earlier on Monday, reports have it that one of the kidnap victims of the train attack was freed by bandits on compassionate ground.
Eight passengers died in the attack, while over 60 people still remain with the kidnappers.
Lagos State Bans Okada in Six Local Councils, Nine LCDAs
Lagos State Governor, Babajide Sanwo-Olu has banned the operations of motorcycles, otherwise known as Okada in six local councils and Nine LCDAs. This comes on the heels of the growing menace and nuisance constituted by the motorcyclists.
The directive was issued at a meeting in the State House in Alausa to the Commissioner of Police, Area Commanders, and Divisional Police Officers on Wednesday.
The six local councils listed by the governor are Ikeja, Surulere, Eti-Osa, Lagos Mainland, Lagos Island, and Apapa.
Effective from June 1, 2022, the Governor directed security operatives to enforce the proscription order across the listed councils. According to the Governor, the ban is indefinite and total.
Recall that about a year ago, Investors King reported Lagos Government’s plan to execute a complete ban on okada, Keke, and introduce their own mini-buses. While the introduction of mini-buses might not be the major factor for this ban, the aim still remained the same – to reduce the lawlessness and crime rate across the state.
Sanwo-Olu said the Government took the decision in line with the State’s Transport Sector Reform Law of 2018 to immediately address the chaos and menace created by the operations of Okada in the listed areas.
“After critical review of our restriction on Okada activities in the first six Local Government Areas where we restricted them on February 1, 2020, we have seen that the menace has not abated. We are now directing a total ban on Okada activities across the highways and bridges within these six Local Government and their Local Council Development Areas, effective from June 1, 2022.
“This is a phased ban we are embarking on this period, and we expect that within the short while when this ban will be enforced, Okada riders in other places where their activities are yet to be banned can find something else to do. We have given the notice now and we expect all commercial motorcycles plying the routes in the listed councils and areas to vacate the highways before enforcement begins. The enforcement will be total,” he said.
As a matter of fact, the Governor recommended residents who patronize Okada riders on highways to use the government’s alternative transportation initiatives to organize their journey. He stated that the government has rolled out Last Mile Buses, medium-capacity and high-capacity buses to commuters in the impacted districts.
After Six Years of Promise, Power Generation in Nigeria Hits Low Again
Despite promises made by President Muhammadu Buhari to provide Nigerians with 10,000 Megawatts of electricity in 2016, power generation still stands at 3,871MW.
Investors King gathered that the Transmission Company of Nigeria (TCN) failed to allocate 1,357MW of electricity from a paltry 3, 871MW generated on Sunday to power distribution companies (DisCos).
In a data report generated by Punch from the division of TCN, Nigerian Electricity System Operator, nine DisCos out of 11 were on Sunday allocated a total of 2, 514MW, leaving 1,357 unallocated.
A breakdown of the allocation for Sunday showed that Abuja DisCo received a total of 289.92MW; Benin DisCo, 226.89; Eko DisCo, 377.31MW; while 251.89MW was allocated to Enugu DisCo. Ibadan DisCos got an allocation of 348.73MW while Ikeja DisCo received the highest load of 478.15MW.
Jos DisCos got the lowest allocation of 138.66MW, Kaduna DisCos received 201.68MW, while Kano DisCos got 201.68MW.
In the last two years, Nigeria’s power generation has been on a record low of not up to 4000MW. The DisCos have most times, dragged TCN for weak transmission lines, low allocation, liquidity gap and others. The TCN, on the other hand, sometimes accuses the DisCos of load rejection.
Although the country’s national grid has a 13,014.14MW capacity, the GenCos generate a meagre 7,652.6MW, while TCN has capacity to wheel 8,100MW.
Experts say Nigeria needs at least 30, 000MW electricity for its over 200 million population to reach sufficiency. The national peak forecast is 19,798MW.
The highest generation ever achieved was 5801.6MW, and that was two years ago.
In a relative situation, the Port Harcourt Electricity Distribution (PHED) has decried the incessant attacks on its facilities in the four states under its jurisdiction.
The company said it was bothered by the recent damage of electrical facilities belonging to the Transmission Company of Nigeria in Cross River State. The Head, Corporate Communications, PHED, John Anonyai, in a statement released in Port Harcourt on Tuesday, stated that the damage caused blackouts in some parts of Calabar, the state capital.
The statement read: “The management of the Port Harcourt Electricity Distribution (PHED) Plc uses this medium to express her displeasure over the incessant vandalism of electric power facilities in its franchise, particularly the recent case responsible for the power outage in Cross Rivers State.
“This shameful act of vandalism that has rocked Calabar and its metropolis occurred about a month ago and has completely deprived deserving customers access to electricity services across the state.
“Historically, this is not the first time that heartless vandals are targeting such facilities without fear of being caught or electrocuted despite the heavy radiation of power transmitted from the towers.
“Painfully, for every act of vandalism which interrupts service delivery abruptly, PHED is always held liable with different sides to the story without facts as we currently experience in Calabar over this incident.”
According to Anonyai, residents of Calabar had been enjoying relative supply before the black-out as opposed to the current falsehood peddled by a sect of unknown faces whose plan was to trigger an unwarranted backlash against the company.
“It is pertinent to give a clue that the vandalized facilities at Oku Iboku belong to the Transmission Company of Nigeria.
“This, notwithstanding, as a responsible company that values the needs and comfort of her esteemed customers particularly in times like this, the company has been collaborating with TCN to restore supply.”
“It is no longer business as usual as the company will explore every single regulatory window to ensure collections and will only resort to disconnection where customers have clearly demonstrated recalcitrance by disregard to repeated demand and reminders to pay their bills,” PHED Managing Director/Chief Executive Officer, Dr Henry Ajagbawa said in a statement.
“We therefore appeal to our esteemed customers to ensure they pay their bills as at when due while hands are on deck to ensure continuous supply of uninterrupted power to the people of Cross River State and other franchise areas,” he added.
With almost nine years of privatisation, the Federal Government said it had spent over N2tn on resolving decades of rot in the power.
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