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NEITI Seeks Probe of $15.8bn NLNG Dividends

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NEITI
  • NEITI Seeks Probe of $15.8bn NLNG Dividends

The Nigeria Extractive Industries Transparency Initiative has called on the Federal Government to commission an independent investigation into the status and utilisation of all dividends and loan repayments by the Nigeria Liquefied Natural Gas Limited to the Nigerian National Petroleum Corporation.

NEITI’s Executive Secretary, Mr. Waziri Adio, made the call in Abuja while speaking on the agency’s policy brief that examined unremitted funds, economic recovery and oil sector reforms.

In the policy brief, NEITI stated, “Since the federation’s shareholding in the NLNG is held through the NNPC, dividends are paid to the NNPC, which should remit same to the federation. However, until 2015, the NNPC failed to remit the interests and dividends from the NLNG to the Federation Account.”

Reacting to this, Adio stated that the total outstanding dividends and loan repayments by the NLNG to the NNPC but not remitted to the Federation Account stood at over $15.8bn.

Providing a breakdown of the payments from 2000 to 2014, he stated that the NLNG dividends, interests and loan repayments to the corporation in 2000 was $211,341,000; 2001, $322,077,000; 2002, $226,562,000; 2003, $436,272,000; 2004, $280,095,000; 2005, $207,282,000; 2006, $332,980,000; 2007, $842,957,000; and 2008, $2,613,170,000.

Others are $879,839,000 for 2009; 2010, $1,427,512,000; 2011, $2,537,503,000; 2012, $2,795,531,000; 2013, $1,289,592,000; and 2014, $1,420,000,000.

“The total sum is therefore $15,822,713,000,” Adio said.

He noted that the payments were traced to the NNPC accounts by NEITI independent auditors but observed that there was no trace of remittance of the money to the Federation Account as required by Sections 80(1) and 162 (1) of the Constitution.

On domestic crude allocation and management, Adio expressed concerns that earnings from daily allocation of 445,000 barrels for domestic use had not been properly accounted for.

He said, “First, the refineries have been operating at below full capacity for a long time and currently process less than 100,000 barrels per day. Between January 2015 and September 2016, the NNPC lifted a total of 245.4 million barrels of crude oil for domestic use. Out of this total, only 24.7 million barrels were delivered to the refineries.

“This represents a mere 10.06 per cent of the total crude oil lifted for domestic use for that period. The remainder of this allocation was exported through a variety of channels; 64.8 million barrels or 26.4 per cent were exported directly; 97.6 million barrels or 39.77 per cent were sold under the offshore processing agreements; and 58.29 million barrels or 23.75 per cent were sold under the direct sales-direct purchase scheme.”

He stated that concerns raised in NEITI’s audits and by other stakeholders about the inefficiency of these arrangements, especially the OPA, led to its discontinuation in April 2016.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Ndubuisi Ekekwe Moves to Deepen Capabilities Through Free Weekly Business Lessons

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Ndubuisi Ekekwe

In a bid to deepen business and individual capabilities across the African continent, Prof. Ndubuisi Ekekwe, Founder of Fasmicro and the Lead faculty, Tekedia Institute, on Sunday said he will commence free business lessons to enhance accumulation of capabilities.

In a message forwarded to all members of the platform, Tekedia.com, Prof. Ekekwe, explained that when businesses accumulate capabilities, they move upstream and create new competitive tentacles which eventually form the foundation of their growth.

More so, because of the capabilities, they protect their market shares through strategic moats against competitors and new entrants,” he stated.

Prof. Ekekwe plans to send out two business lessons per week to engage Tekedia’s growing community on the mechanics of business systems. “Each piece would be prepared to pass across a business lesson.”

Prof. Ndubuisi Ekekwe writes regularly in the Harvard Business Review and has spoken at global events — explaining and teaching the mechanics of business systems and nation-building.

To start receiving his free business lessons sign up here.

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FG Introduces NEXIT Portal for Npower Batch A and B Beneficiaries

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The Federal Government has introduced a new online portal for exited Npower beneficiaries of batch A and B.

According to the Minister for Humanitarian Affairs, Sadiya Farouq, the portal was launched in collaboration with the Central Bank of Nigeria (CBN) to enable exited Npower beneficiaries apply for available federal government empowerment options.

This was disclosed in a statement issued by Nneka Anibeze, the media aide to the minister, on Friday.

The ministry said the NEXIT portal will be used to determine the suitability of exited beneficiaries for various CBN-affiliated programmes.

She explained that selection will be based on the conditions and criteria set by the apex bank.

Ms Farouq, therefore, urged interested exited Npower beneficiaries to log on to the NEXIT portal and provide the required additional information for possible placements into central bank’s intervention options.

The Minister expressed her deep appreciation to the CBN Governor Mr Godwin Emefiele CON for his support adding that the Ministry of Humanitarian Affairs remained committed to the vision of Mr President to lift 100 million Nigerians out of poverty in the next 10 years.

“Minister Umar Farouq pledged the Ministry’s willingness to collaborate with relevant agencies of government and other stakeholders towards the realization of that vision and congratulated the exited beneficiaries while wishing them well in their future endeavours.

“The Federal Government of Nigeria is very proud of the milestones you have achieved during your period of service to the nation. As we prepare to exit into prospective endeavours.”

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Ellah Lakes Partner Ondo State Government to Develop Oil Palm, Cassava in the State

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The management of Ellah Lakes Plc said it has partnered with Ondo State Government to develop and manage 5000 hectares of land for the purpose of cultivating oil palm and cassava in Ondo State, Nigeria.

The company stated in a statement signed by Kenechi Ezezika, Company Secretary, Ellah Lakes Plc.

Speaking on the development, the Chief Executive Officer, Chuka Mordi said: “This is a significant landmark for the Company in the development of our landbank, & we are very excited to be working with ODSG.

I am delighted that we are fulfilling our strategic objective of progressively expanding our land bank & diversifying our portfolio and production base. I am also glad to say that the intercropping programme in Edo State is progressing steadily & we have achieved our first milestone of 100Hectares of Cassava with the participation of personnel of the Agricultural Development Program (ADP), in Edo State”.

The Special Adviser on Development & Investment to the Ondo State Governor/ Chief Executive Officer of Ondo State Development and Investment Promotion Agency (ONDIPA), Mr. Akinboye Oyewumi, who also spoke on the development said: “We are pleased with this collaboration with Ellah Lakes Plc., and we look forward to a mutually beneficial, valuable and fruitful venture.”

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