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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.

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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Banks’ Credit to Economy Hits N19.33 Trillion in August

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Godwin Emefile

Deposit Money Banks Credit to Economy Rose to N19.33 Trillion in August

The total credit facility to the economy rose to N19.33 trillion in the month of August.

The Central Bank of Nigeria-led monetary committee disclosed on Tuesday after the nation’s monetary policy committee meeting.

The committee attributed the improvement to the 65 percent loan-to-deposit ratio policy implemented to compel the nation’s deposit money banks to join central bank efforts at growing the real sector of the economy.

Godwin Emefiele, the Governor of the Central Bank of Nigeria, who spoke during the meeting said “The bank’s policy on Loan to Deposit ratio also resulted in a significant growth in credit to various sectors from N15.57tn to N19.33tn between end-May 2019 and end-August 2020, an increase of N3.77tn.

“This growth in credit was mainly to manufacturing (N866.27bn), consumer credit (N527.65bn), oil and gas (N477.65bn), agriculture (N287.11bn) and construction (N270.97bn).”

On monetary aggregates, broad money supply (M3) rose to 6.93 per cent (year-to-date) in August 2020 from 5.23 per cent in July 2020, reflecting the increase in both Net Foreign Assets and Net Domestic Assets.

He said total domestic credit grew by 6.94 percent in August 2020, lower than the 9.43 percent recorded in July 2020.

The committee reduced the nation’s benchmark interest rate by 100 basis points to 11.5 percent, down from the previous 12.5 percent.

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Emerging Cities Take on Established Hubs for Graduates Seeking a Career in Finance

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Graduates Seeking a Career in Finance Prefer Dubai to Start Their Career

Dubai is the number one global destination for graduates who successfully complete the flagship graduate programme at one of the world’s largest independent financial advisory organisations.

On passing the intensive scheme, deVere Group routinely asks graduates in which location within the Group’s global network of offices they would like to start their international financial services career. This year, 36% have responded with Dubai.

The second most popular is London (25%); Hong Kong is third (14 %); Mexico City is fourth (13%) and Moscow is fifth (6%).

The remaining 6% is made up of other destinations including Shanghai, Geneva, Paris, and Abu Dhabi.

deVere Group CEO and founder Nigel Green comments: “This survey highlights that the next generation of financial services professionals are open to look beyond the traditional and more established global financial hubs.

“The order of the top destinations changes with each group of grads we take on, but Dubai, London, and Hong Kong are typically in the top five somewhere.

“This is because, quite understandably, these global hubs of finance, commerce and technology represent centres of enormous possibilities for ambitious individuals about to embark on careers as international wealth-advisory and fintech professionals.

“There are some common traits amongst these cities, including that English is commonly spoken, they are politically and economically stable, there is a high level of internationally-minded high net worth individuals, and by relocating to these places one can usually expect comparatively high financial rewards.”

He continues: “What is different this year is that for the first time emerging financial hub cities are making the top five. Mexico City and Moscow are now actively competing for top talent with well-established international financial centres like Shanghai, Geneva and Tokyo.

“All these global destinations are unique and differ from each other in terms of the lifestyle they offer and in terms of clients’ expectations, economic environments and regulatory conditions.

“With each of the top five cities offering unique opportunities and challenges, each one attracts grads who have often quite markedly different strengths and weaknesses, skill sets and aspirations,” notes Mr Green.

“The results of this survey suggest that despite the pandemic, talented young people seeking a rewarding career are keen to look for opportunities internationally.”

The deVere CEO concludes: “With a globally-focused outlook from the wealth advisers and fintech professionals of the future, we can expect this trend of emerging hub cities to take on stalwart destinations to continue for the foreseeable future.”

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Adesina, Godwin Emefiele, Others to Deliver Keynote Address at ASA 2020

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Akinwumi Adesina

Adesina and Godwin Emefiele to Deliver Keynote Speech at Agriculture Summit Africa (ASA) 2020

The President of the African Development Bank (AfDB), President Dr. Akinwunmi Adesina, is expected to deliver the keynote address at the 2020 Agriculture Summit Africa (ASA) holding this week.

The yearly summit organised by Sterling Bank is titled ‘Fast forward agriculture: Exploiting the Next Revolution’ this year.

According to the organisers, participants were expected to log in online while a few others would be in Lagos and Abuja studios.

In a statement released on Tuesday, Yemi Odubiyi, the Executive Director of Corporate and Investment Banking, Sterling Bank said other dignitaries were expected to deliver goodwill messages at the summit.

Some of the names mentioned were the governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele; Minister of Agriculture and Rural Development, Alhaji Muhammad Sabo Nanono; Cross River State Governor, Prof. Ben Ayade; his Kebbi counterpart, Senator Atiku Bagudu; and the Oniru of Iru Kingdom, Oba Abdulwasiu Omogbolahan Lawal.

Director, Advocacy and Country Alignment Function (ACAF), Director-General’s Office, International Institute of Tropical Agriculture (IITA), Dr. Kwasi Attah-Krah, is expected to deliver another keynote address on the second day.

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