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Report on $22bn, N481.75bn Unremitted Funds for 2015, NEITI Clarifies

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  • Report on $22bn, N481.75bn Unremitted Funds for 2015, NEITI Clarifies

The Nigerian Extractive Industries Transparency Initiative has clarified that the sums of $22.06bn and N481.75bn listed as yet to be remitted to the Federation Account by the Nigerian National Petroleum Corporation and its subsidiary, Nigerian Petroleum Development Company, and other companies in the oil and gas sector were as of 2015.

According to NEITI, between that time and now, some reconciliation has taken place and some remittances would have taken place, adding that its 2015 and 2016 report due for release in December this year would provide a proper update on the actual figures outstanding, if any.

Consultants to NEITI had circulated the ‘Summary of unremitted revenue, losses and irreconcilable differences from operations and transactions in the oil and gas sector’ at a national conference on remedial issues held in Abuja on Monday.

The document, however, did not specify the period the summary covered or if any reconciliation had taken place on the figures.

It simply stated that the NNPC alone had yet to remit total revenues of $19.04bn and N424.57bn.

Providing a breakdown of the unremitted revenues by the other firms, the report stated that oil and gas producing companies were still withholding $152.69m and N5.2bn; companies involved in offshore processing contracts, $498.6m; and the NPDC, $2.38bn and N51.95bn.

The NEITI report stated that the total losses to the federation arising from crude oil production, processing and transportation were $3.04bn and N60.99bn.

It noted that irreconcilable differences arising from the allocation, sale and remittance of proceeds from domestic crude allocated to the NNPC amounted to N317.48bn.

The total liability by companies involved in Offshore Processing Arrangements was put at $498.6m, as NEITI explained that the debt was due to under delivery of imported fuel by the participating companies.

It listed some of the companies involved, the transaction and period to include the NNPC-SIR, OPA, between 2010 and 2014, with an outstanding liability of $20.34m; NNPC-Trafigura, SWAP, 2010-2014, with liability of $2.52m; NNPC-AITEO, OPA, 2015, with $104.46m liability; and NNPC-Duke Oil, Stop-Gap OPA, 2015, $11.99m liability.

NEITI later clarified in a statement that the non-remittance of revenue by the NNPC and others did not take place under the President Muhammadu Buhari administration, which stopped it.

The agency said in the statement by its Director of Communications and Advocacy, Dr Ogbonnaya Orji, “For the avoidance of doubt, NEITI wishes to state that the document covered the period 1999 to 2015. The unremitted amounts mentioned largely related to NLNG dividends paid for the period between 2000 and 2015 and money due from 12 assets divested to the NPDC between 2011 and 2013.

“Apart from these being legacy issues, at no point did NEITI mention money missing from the Federation Account. NEITI hereby reiterates the need for the media and other stakeholders to seek clarification when they are not clear, and resist the urge to politicise the work of the agency.

The Executive Secretary, NEITI, Waziri Adio, according to the statement, told the participants that the objective of the conference was to bring the issues to the attention of relevant covered agencies and NEITI partners for a coordinated approach for the benefit of the country.

He traced the history of the remedial issues since 1999 to NEITI’s last report in 2015 and expressed regret that many of the issues have become recurring decimals in successive NEITI reports.

In his contribution, the Managing Director, NNPC Capital, Mr Godwin Okonkwo, who represented the Group Managing Director, Dr Maikanti Baru, explained that many of the issues being raised by NEITI had either been resolved or in the process of being resolved.

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.

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Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

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Heirs Life Assurance- Investors King

Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

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Banking Sector

Safaricom, Access Holdings Forge Partnership to Revolutionize Remittance Corridor in Africa

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Access bank

Safaricom, the leading telecommunications company in Kenya, has entered into a strategic partnership with Access Holdings, spearheaded by Aigboje Aig-Imoukhuede.

The collaboration aims to revolutionize the remittance corridor between East and West Africa, marking a significant step towards enhancing financial inclusion and empowering millions of individuals across the continent.

The partnership comes on the heels of Access Holdings’ recent acquisition of the National Bank of Kenya Limited, signaling the company’s ambitious expansion into the East African market.

Leveraging Safaricom’s extensive network and expertise in mobile money through M-Pesa, which currently dominates the mobile money market in Kenya, the alliance seeks to create seamless and efficient channels for remittance transactions.

Aigboje Aig-Imoukhuede, the driving force behind Access Holdings, expressed enthusiasm about the collaboration, highlighting its potential to transcend traditional boundaries and foster greater economic connectivity between East and West Africa.

He highlighted the fusion of collective expertise and resources between the two entities, underlining their shared commitment to driving financial inclusion and empowerment across the continent.

The partnership holds promise for addressing the challenges faced by millions of Africans in accessing affordable and reliable remittance services.

By connecting more than 60 million customers and 5 million businesses across eight countries, the collaboration aims to facilitate over $1 billion in daily transaction value, significantly boosting the flow of remittances within and outside Africa.

With the first phase of the collaboration focusing on key markets such as Nigeria, Kenya, Ghana, and Tanzania, stakeholders anticipate a transformative impact on the remittance landscape, paving the way for greater intracontinental trade and economic integration in line with the objectives of initiatives like the African Continental Free Trade Area (AfCFTA).

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Banking Sector

EFCC Urged to Repatriate Recoveries to NDIC for Depositors’ Relief

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The Nigeria Deposit Insurance Corporation (NDIC) has made a fervent plea to the Economic and Financial Crimes Commission (EFCC) to expedite the repatriation of recovered funds to its coffers to facilitate the timely reimbursement of depositors affected by bank failures.

During a recent meeting between the Managing Director of NDIC, Bello Hassan, and the Executive Chairman of the EFCC, Ola Olukoyede, at the NDIC headquarters in Abuja, Hassan stressed the importance of enhanced collaboration between the two agencies in recovering depositors’ funds lost due to bank failures.

Hassan emphasized that the return of recoveries made by the EFCC on behalf of the NDIC would significantly contribute to the prompt reimbursement of affected depositors.

He commended the EFCC for its unwavering efforts in combating corruption and financial crimes, highlighting its crucial role as a key member of the Taskforce on Implementation of the Failed Banks Act chaired by the NDIC.

The NDIC boss also highlighted the existing partnership between the two organizations, which led to the establishment of the NDIC Help Desk at the EFCC in 2022.

He disclosed that several high-profile cases referred to the EFCC were currently under investigation.

In response, Olukoyede reiterated the EFCC’s commitment to collaborating closely with the NDIC to combat financial crimes and safeguard the integrity of the Nigerian banking sector.

He pledged to intensify efforts to repatriate recovered funds promptly, acknowledging the interconnectedness between criminal activities and bank failures.

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