Connect with us

Economy

NNPC, Banks Deny Concealing FG’s $793.2m

Published

on

NNPC - Investors King
  • NNPC, Banks Deny Concealing FG’s $793.2m

The Nigerian National Petroleum Corporation on Friday reacted to reports that it colluded with some banks to prevent the remittance of $793.2m into the Treasury Single Account as directed by the Federal Government.

Its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, in a statement issued in Abuja, stated that the allegation was not only misplaced but equally misleading.

The Federal High Court in Lagos had on Thursday ordered seven commercial banks to temporarily remit a total of $793.2m allegedly hidden by them for the oil firm and its subsidiary in contravention of the Federal Government’s Treasury Single Account policy.

According to the court, the concerned banks are United Bank for Africa Plc, Diamond Bank Plc, Skye Bank Plc, First Bank Limited, Fidelity Bank Plc, Keystone Bank Limited and Sterling Bank Plc.

But Ughamadu said the corporation had earlier taken steps to inform the Presidency, Office of the Accountant-General of the Federation and the Central Bank of Nigeria on the existence of the said accounts prior to the creation of the TSA.

The NNPC said it would be totally out of place to move the funds to the government’s asset recovery account as reported, noting that it was unreasonable and sheer waste of funds to pay any agent five per cent whistle-blowing fee for the phantom recovery of genuine funds belonging to it and which had been disclosed to the Presidency, CBN and other relevant stakeholders.

Providing further breakdown on the lodgements, the NNPC said the amount included $174.4m domiciled at Diamond Bank, $40.7m in Skye Bank and $16.7m in Keystone Bank, bringing the total to $231.8m.

It stated that in line with the directive of the Presidency, the CBN was supervising the remittance of these funds to the TSA and it had made great strides in this regard.

The NNPC noted that as an entity with fiduciary responsibility to the government and people of the country, its commitment to transparency and accountability remained unwavering.

Meanwhile, the United Bank for Africa Plc said on Friday that it had fully remitted all the NNPC/Nigerian Liquefied Natural Gas Limited dollar deposits since August 24, 2016.

The pan-African lender stated that none of such funds was currently in its books, noting that the CBN had in a memo published in its website cleared it.

UBA, in a statement by the Head, Marketing and Corporate Communications, Bola Atta, said, “We wish to state categorically that UBA has fully remitted all NNPC/NLNG dollar deposits since August 24, 2016. We hereby emphasise that none of such funds is currently in the bank’s books. Our action was further corroborated by a clearance memo published by the CBN on its website on same date.”

This came just as Skye Bank Plc denied concealing funds meant to be transferred to the TSA.

Skye Bank, in a statement on Friday by the Head, Strategic Brand Management and Communications, Mr. Nduneche Ezurike, said, “It was alleged that the sum of N41m is illegally kept in a NAPIMS fixed deposit account with Skye Bank in collusion with government officials. The management of Skye Bank hereby states that it neither colluded nor unilaterally hid the reported sum or any other funds in its custody.

“On the contrary, the said funds are held with the full knowledge of the relevant agencies of the government, including the Central Bank of Nigeria, the DSS, the National Assembly and the Inspector General of Police’s Special Investigation Panel, with whom we have engaged extensively over same.”

The lender informed all its stakeholders that it would not conduct itself in breach of the laws or policies of the government, including the TSA policy.

Sterling Bank and Fidelity Bank had on Thursday denied the allegation, while First Bank, Keystone Bank and Diamond Bank have yet to issue official responses.

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

Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

Published

on

Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

Continue Reading

Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

Published

on

Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

Continue Reading

Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

Published

on

Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending