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NNPC Fraud: CBN Governor Sanusi To Proceed On Post-Retirement Leave In March.

CBN Governor, Sanusi Lamido Sanusi
By SaharaReporters, New York

SaharaReporters has learnt that Nigeria’s Central Bank Governor, Sanusi Lamido Sanusi, will be forced to leave his post in March, 2014, two months before the formal expiration of his tenure. Two sources at the Presidency and a source at the Central Bank told SaharaReporters that Mr. Sanusi has been ordered to proceed on a post-retirement leave in March. All three sources concluded that the early exit for the CBN henchman was occasioned by Mr. Sanusi’s recent leaked letter to President Goodluck Jonathan detailing the theft of close to $50 billion in oil proceeds by the Nigerian National Petroleum Corporation (NNPC). Last week, Mr. Sanusi revised the figure of missing funds down to $12 billion, but the damage to the Jonathan Presidency is considered massive.

SaharaReporters learnt that Mr. Jonathan has concluded plans to speedily replace the CBN governor whom the president believes set out to embarrass his government. “[President] Jonathan thinks that Sanusi Lamido Sanusi has been making erratic pronouncements recently calculated to demean the office of the President,” said a source in the Presidency.

Presidency officials accused the CBN governor of leaking a private letter written to President Jonathan in which Nigeria’s chief banker complained about fraud perpetrated by officials of the NNPC and the Minister of Petroleum Resources, Diezani Alison-Madueke. Ms. Alison-Madueke is extremely close to the president and is believed to be the arrowhead of Mr. Jonathan’s corrupt schemes, especially in the oil sector.

One of the sources at the Presidency told SaharaReporters that, although Mr. Sanusi’s allegations were substantially accurate, the CBN governor was forced to back down from the more damaging aspects of his claims after the president’s associates threatened to make an issue of his reckless spending and philandering. “Once Sanusi found out that the Presidency was determined to deal with him, both through the media and by instigating the EFCC to look into his spending habits, he was willing to retreat and to accept an early departure,” said our source.

Shortly after the CBN governor was effectively blackmailed and brought under control, he appeared before the Nigerian Senate and reversed his position, claiming that the NNPC was only unable to reconcile $12 billion of crude oil sale earnings.

It was shortly after Mr. Sanusi’s Senate appearance that President Jonathan ordered that the CBN governor’s retirement should be fast-tracked. Mr. Sanusi, who is believed to nurse an ambition to become the next Emir of Kano, had publicly stated that he does not intend to stay for another term.

His term as Nigeria’s Central Bank governor is due to expire in May 2014.

NYM Calls For CBN Gov’s Resignation.



Northern Youth Movement For Positive Change has call on the governor of the Central Bank of Nigeria(CBN), Sanusi Lamido Sanusi to resign from his current position as the governor of the apex bank.The group made the call in a statement signed by its coordinator, Mr David Glavda, yesterday in Abuja, saying it is pertinent for Sanusi to resign due to his controversial report on the unremitted oil revenue by the NNPC.“Sanusi has casted a credibility question on himself and the institution he is representing, this presupposes that before he makes any public awareness, he must have evaluated it thoroughly in order not to put the economy in jeopardy or cause the confidence of foreign investors in our economy to be eroded,” the group said.“He has commented on practically everything under the sun, even on issues outside his purview. He certainly does not appreciate the enormity of responsibility bestowed and expected of his office.Sanusi Lamido Sanusi should have cross checked his facts before going public or even writing Mr. President, as the CBN governor,” the group added.It said that Sanusi had unlimited access to the top management of NNPC, adding that it was surprising that rather than double check his information with the relevant government  agencies, he chose to play to the gallery.

Source: Radio Biafra.
By: Murtala Adogi Mohammed

Nigeria “Money No Miss” By Prince Dickson.

By Prince Charles Dickson

‘The longest road you’re going to have to walk is from here to here.

Let me first issue a caveat, I am not a finance expert, an economist, or auditor, I am not a banker, I have not held the post of cashier, or treasurer. My mathematics is poor, but I know one plus one is equal to two. I also know money magic when I see one…and my admonition for this week is on some of the magic of money in 2013 in Nigeria.

But first let me tell us this story.

It’s a slow day in little Tensleep, Wyoming. The sun is beating down, and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit…

On this particular day a rich tourist from back east is driving through town. He stops at the motel and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs in order to pick one to spend the night.

As soon as the man walks upstairs, the owner grabs the bill and runs next door to pay his debt to the butcher.

The butcher takes the $100 and runs down the street to retire his debt to the pig farmer. The pig farmer takes the $100 and heads off to pay his bill at the supplier of feed and fuel.

The guy at the Farmer’s Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her “services” on credit.

The hooker (prostitute) rushes to the hotel and pays off her room bill with the hotel owner.

The hotel proprietor then places the $100 back on the counter so the rich traveler will not suspect anything.

At that moment the traveler comes down the stairs, picks up the $100 bill, states that the rooms are not satisfactory, pockets the money, and leaves town.

No one produced anything. No one earned anything.

However, the whole town is now out of debt and now looks to the future with a lot more optimism.

Madam Coordinating Minister for Economic Planning and Finance and de facto president Ngozi Iweala presented some N4.6trillion as budget for 2014 last week. And again as she spoke of job creation, agriculture, housing and had smiles–we look to 2014 with optimism?

That she presented it on behalf of the president is no news, or that there was another hassle before the National Assembly agreed on the oil benchmark for it, is not information to most of us.

That in my generation I am seeing trillions expended, is a little news, I never thought it did be this soon. Add that to the fact that the budget proper would pass somewhere in march/april and disbursement around may/june is now the norm.

This year some parastatals got their budget for this year, in October, some, only last month, and then others still waiting. Don’t ask me how they ran their operations–whichever way, money no miss.

After the initial $49.8 billion alleged missing, Sanusi the CBN chief said he erred, only $12billion was found to have been a ‘shortfall’ in the oil fund remittance. Ngozi Iweala says it is ‘only’ $10.8billion that was yet to be ‘reconciled’. So $1.2billion is the ‘outstanding’, money no miss.

Do we remember the N58billion that was hidden funds diverted by MDAs. Monies that was supposed to be paid into the consolidated revenue fund. It was diverted and hidden, money no miss.

Only few weeks back, between the office of the Secretary to the Government of the Federation and Labaran Maku N100.561billion could not be accounted for. Money no miss.

In fact accountants at the Ministry for Information say they have no records for N4.6billion vote. Records maybe missing, but money no miss.

How about the SURE-P N500billion that went ‘awol’ according to Senate. Well the Senate couldn’t find it, but money no miss.

Have you seen the 50 questions on our economy that Ngozi must answer according to the House of Rep. Member, it is the same questions she’s answered one way or the other, somewhere, at some point. The monies have been shared–money no miss.

The point of my admonition is we cannot afford to be on the same track, where several millions, billions just disappear. Where monies are dispensed and there’s nothing to show for.

In 2013, billions were shared via the federation account and very little to show in development. A small community has a councillor, chairman,  a state legislator, a governor, a senator, a representative, and the president, in some cases, this community may have the honour or a minister for water resources as their daughter. Yet for all the billions, the community has no portable water. Well, they are not complaining, so like Fela put it…money no miss.

We need to get over the Nigeria is broke, Mr. President rang the bell at the New York Exchange argument. All the EFCC is broke, we are not broke stories need to be sorted out.

The strange cases of local government workers’ salaries being owed for months, same as teachers must be treated.

Nigerians need to get tired of seeing their monies in luxury cars and homes, and lifestyles of those who claim to be their leaders. While millions can’t be put in healthcare or for doctors and nurses.

Gov. Rotimi Amaechi could not have put it better, “we steal because people don’t stone us”. I dare add, they steal because we don’t notice that money is missing.

I have purposely left out the millions missing in virtually every state, including Amaechi’s state. I have not touched the pension billions, or the constituency project fraud–allowances, per diems and more that no one has records of. Simply because when the traveler comes down the stairs, picks up the $100 bill, states that the rooms are not satisfactory, pockets the money, and leaves town.

No one produced anything. No one earned anything, its just from here to here, but for how long we will pretend that money no miss–only time will tell.


AMCON Set To Redeem N1Trn Bonds But Critics Say AMCON Remains A Drainpipe.

CBN Gov. Lamido Sanusi Lamido and Mustafa Chike-Obi- Managing Director/CEO, AMCON
By SaharaReporters, New York

The Governor of the Central Bank of Nigeria (CBN), Mr. Sanusi Lamido Sanusi, says the Asset Management Company of Nigeria (AMCON) is set to pay-off N1 trillion of the entire series 1, 2, 3, and 4 bonds held outside of the CBN, on December 30.

According to him, the CBN is already in custody of the said N1 trillion and all those who own a stake in the said series will be paid either by cash or Treasury Bills.

Mr. Sanusi made the declaration in Abuja today during the signing of an agreement between the apex bank and AMCON on the financing of N3.8 trillion worth of bonds over a period of 10 years.

The CBN governor also disclosed that by October 2014, AMCON would have written off another N1 trillion worth of bonds, thus making the CBN the only creditor of AMCON. This, he noted, is a credit positive for Nigeria.

Prior to signing the agreement, which he said was the outcome of bilateral negotiations between the two bodies, Mr. Sanusi gave a background to the establishment of AMCON in 2010, stating that the corporation was instrumental to addressing the banking crisis brewing in Nigeria at the time.

“Without AMCON, we would never have been able to resolve the financial crisis,” he stated.

He therefore expressed appreciation to President Goodluck Jonathan; his predecessor, the late Umaru Yar’Adua; the Minister of Finance, Dr. Ngozi Okonjo-Iweala; and her predecessors, Olusegun Aganga and Mansur Muhtar; as well as other financial advisers, for their cooperation and the roles they played in the establishment and operation of the AMCON project.

Sanusi noted that CBN was aware of the concerns by the Federal Ministry of Finance that the amounts involved in the AMCON project could end up on Government’s balance sheet. He, however, assured that the apex Bank, AMCON and financial institutions were working hard to protect the Government’s balance sheet.

Sanusi also expressed optimism that the collaboration between the Bank and the Federal Ministry of Finance will continue to yield fruitful results.

While thanking the National Assembly for its support in ensuring the passage of the AMCON Bill into law in July 2010, he appealed to the legislators to finalize work on the AMCON Amendment Bill in order to put the agreements reached on AMCON on a firm legal footing.

He equally commended the management team of AMCON, which he described as the best brains put together by he and Mr. Aganga.

The highpoint of the ceremony was the signing of the agreement between the CBN and AMCON.  Mr. Sanusi signed for the CBN while Mr. Mustafa Chike-Obi, the Managing Director/Chief Executive Officer of AMCON, signed for the company.

Despite Mr. Sanusi’s optimism today, AMCON has been serially accused of bailing out economic criminals by accepting assets or collaterals that are well below the values of their debts.

The International Monetary Fund (IMF) also recently recommended that AMCON be scrapped because of the massive corruption perpetrated by the agency.

NNPC snipes CBN over alleged missing $49.8bn.


The spat over an alleged missing oil revenue worsened on Friday as the Nigeria National Petroleum Corporation (NNPC) accused the governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, of playing politics with oil revenue, emphasising that no $49.8 billion is missing.The corporation has also clarified that the shortfall admitted at the Federation Account Allocation Committee meeting referred to monthly crude returns rather than the issue of missing money the CBN alleged.Addressing a world press conference in Abuja, the NNPC Group Managing Director, Andrew Yakubu, said Sanusi was playing politics over oil revenue accounts which the CBN on a monthly basis reconciled alongside other agencies like revenue service and petroleum resources department.Expressing surprise at the refusal of the CBN governor to retract the allegation, Yakubu said “if not for politics, there is no reason for the allegation on a matter in which CBN and other agencies sit monthly and on which the bank has never raised any objections.”Yakubu posited that the process for revenue remittance was clear and that the NNPC was not in the business of withholding any crude oil receipts due the Federation Account or any other statutory remittances.“All NNPC crude oil liftings is made up of the following: equity crude; royalty oil; tax oil; volume for third party financing and NPDC equity volume. Proceeds from equity crude was paid to Department of Petroleum Resources, (DPR); the proceeds from tax oil or petroleum profit Tax lifted by NNPC is paid directly into the Federal Inland Revenue Service (FIRS),” the GMD said.Noting that the three accounts are domiciled with the CBN, Yakubu explained that NNPC is by statutory requirement responsible for direct remittances of only one stream of liftings, namely equity crude minus other streams which are the responsibilities of DPR and FIRS.

“The CBN letter claims that for the period 1st January 2012 to 31st July 2013, national crude oil liftings was 1.287 billion barrels. Our records show that the total national crude oil lifting for the same period was actually higher at 1.330 billion barrels. Furthermore, total NNPC liftings during the same period were again higher at 618.552 million barrels as against the 594.024 million barrels stated by CBN,” the NNPC boss said.“We further wish to state that the proceeds from the total NNPC liftings comprising federation equity, royalty oil, tax oil, volume for third party finance and NPDC equity amount to USS67.12 billion as against the $65.33bn that the CBN stated,” he said, adding that “NNPC remitted its portion which is $1b.48bn (27.5 per cent) into the Federation Account being the total proceeds from equity crude and gas sales of which CBN acknowledged receipt of $15.528bn (24 per cent).On the issue of $49.8 billion or 76 per cent of total national liftings and the alleged unremitted funds, Yakubu said that this represents the balance of other streams as stated above which he said are remitted to the various agencies which are statutorily empowered to collect and remit same into the Federation Account.On the allegation that the NNPC owes the Federal Government another $22 billion in unpaid levies to the National Export Supervisory Scheme (NESS), Yakubu noted that “the levies under the NESS are paid to third party inspectors based on services  rendered to the Federal Government.“The current position is that NNPC has paid a total of $114.78 million from inception of NESS in 2009 up to October 2013 as against the total budget of $117.08 million for the same period. These payments have been reconciled with the CBN,” he said.In a related development, the Chairman, Finance Commissioners Forum, Mr Timothy Odah, said the NNPC accepted that it owed the Federation Account.Odah, the Commissioner for Finance in Ebonyi State, made the revelation in Abuja when he briefed newsmen on the outcome of Friday’s monthly Federal Account Allocation Committee (FAAC) meeting.He said the NNPC representative at the meeting admitted that the organisation owed the federation and acknowledged not remitting the exact amount it generated.The governor of CBN wrote a letter to the president, that NNPC failed to remit $49.8 billion to the Federation Account between 2012 to date.Odah, however, according to the News Agency of Nigeria (NAN), said the actual amount of its indebtedness would be determined at the next FAAC meeting.“The NNPC has admitted that truly they owe the Federation Account and by that information, we referred the deliberation on the figure of what they say they owe to the next FAAC meeting.“This is so that the technical committee will be able to examine NNPC accounts before we will be able to publicise or accept the figure they have quoted,” he said.Odah said the NNPC’s acknowledgment of its indebtedness to the Federation Account over revenue it had failed to remit was “important” and described it as a welcome development.“You know previously that it has always been a matter of controversy.“They say they don’t owe and sometimes they will say that it is the Federation Account that owes them, but this time they have accepted that they owe.“Although, the difference between what we claim they owe and what they claim they owe is very marginal,” he said.Odah also said the FAAC technical sub-committee would begin to work on measures to further scrutinise remittances by the NNPC in order to avoid such occurrences in future.

Source: Radio Biafra.

State Within The State: NNPC As A Metaphor For Impunity By Jaye Gaskia.

All through its history, and throughout all the metamorphosis that it has undergone, the Nigeria National Petroleum Corporation [NNPC] has been a very special, secretive, and opaque golden goose laying the treasured eggs that has oiled successive regimes, and driven the competitive primitive accumulation of capital by Nigeria’s inept, but kleptomaniac ruling class!

But perhaps at no other time in our collective history as a nation, nor in its own specific history has the corporation become as far elevated above the legal, legitimate, constitutional, as it has become in recent years. The NNPC has become such a behemoth, not because of the size of its stock, the reach of its global economic or business domination; but entirely because of its transformation into an effective organised crime enterprise and empire; one within which there is diplomatic immunity for any type of economic criminality and a safe space for the most unthinkable breach of the constitution; as long as the Emperor sitting at the top of the dynastic sleaze and his court are being adequately serviced with the spoils of the monumental pillage of our collective wealth.

The latest in the long list of historic and historical heists perpetrated and perpetuated through the NNPC by any reigning emperor and his court is around the allegation of non remittance of statutory revenue generated through activities of the NNPC into the Federation account! No less an institution than the CBN, through the unusual step of a letter directly addressed to the President is the source of the current allegation. From the CBN, it has been revealed that over a period of 18 months alone [Jan 2012 to July 2013], the NNPC failed to remit a whooping N8tn into the Federation account from the sale of crude oil alone over that period. The NNPC has come out to once again, and as it has become traditional for it, to vociferously deny any such allegations; each time always finding esoteric but spurious explanations for its central role in the grand looting of our treasury!

It must be said at this point that the NNPC is not alone in this institutionalized architecture for grievous, but also serial violation and breach of the constitutionally enacted laws of the Federation of Nigeria.

Early in 2013 we found out through the National Assembly [NASS] that more than 100 MDAs regularly either fail to remit revenue generated to the Federation account, or grossly under report their earnings in order to get away with remittance of only insignificant fractions of the revenue they have generated; in very clear breach of relevant laws. Additionally nearly 200 MDAs regularly fail to file their financial statements with the office of the Auditor General of the Federation!

So as we can see, the NNPC is not the only culprit, but given that it is the golden goose that lays the golden egg, it is by the most significant culprit of this criminality; and by any stretch of the imagination also the agency with the most blatant disregard for constitutionalism in our land.

At other times in the recent past, the NNPC has been implicated in an historically long list of criminal pillages, and the most profound and intense looting of our collective wealth. Every single audit of the NEITI process has directly implicated the corporation in criminal activities including failure to remit appropriate taxes on its activities, as well as the gross under remittance of earned incomes!

In 2012 in the immediate aftermath of the January Uprising, and again in early 2013, it was severally revealed through various probes and investigative panel reports that the NNPC’s utilization of the 445,000 barrels of crude concessionary allocated to it for domestic refining is shrouded in mystery, given that according to its and the government’s own claims the domestic refineries have never operated at more than 50% of installed capacity! Nevertheless the NNPC continues to enjoy this concessionary allocation in totality! Furthermore, the NNPC, it was revealed, regularly deducts money from its revenue before remitting the balance, for fuel subsidy claims that it pays to itself, as well as for fuel subsidy on fuel ostensibly refined at its subsidiaries, the domestic refineries! Let us take a look at one instance early in 2013: The NNPC claimed that its subsidiaries, the refineries were now refining a combined 10 million litres of petrol per day; yet the PPPRA claimed to have no knowledge of the existence nor receipt of these daily quantum of refined fuel,; nor was it aware that this quantity of fuel  refined domestically was in anyway being utilized within the nation’s borders!

Yet in spite of this outlandish claim by the NNPC, denied by the PPPRA, the Federal Ministry of Finance reports that we have curtailed fraudulent importation of refined fuel by bringing down the daily consumption rate of petrol from the unprecedented and criminally inflated high of the 60 million litres per day in 2011 to an average of 40 million litres per day in 2012 and 38 million litres per day in 2013. The question to ask is where is NNPC’s phantom 10 million litres per day production of refined petrol? And a further question to ask? What is the current average level of capacity utilization of the four moribund domestic refineries? Whatever the percentage or figure is; 40%, 50%, or 60%, what in quantitative terms does this translate into with respect to daily production rate of petrol? Where is this daily quantity utilized? What impact has it had on reducing the daily quantity of imported refined petrol?

Now let us leave the realm of the seemingly legal or illegal for a moment, and explore the world of the extralegal , the context of organized crime corporations. Under the watchful gaze of the NNPC, we witnessed and continue to witness not only the unprecedented spike in the illegal fuel subsidy theft regime from the average of roughly N500bn per annum to the astronomical figure of N2.7tn in 2011; but we have also witnessed, and continue to witness the equally epochal spike in the quantum and scale of crude oil theft, as well as the consequential damage to the environment. So from a daily crude oil theft rate of 50,000 to 100,000 barrels per day of crude oil, we have now reached the Olympian heights where the daily theft rate hovers around 400,000 barrels of crude per day; And this only since the outsourcing  of Oil Pipeline surveillance and Maritime security, through juicy contracts annually worth over N30bn to armed merchants who just recently masqueraded as ‘armed militants’ with a cause!

And what has been the unacknowledged implication of this grand theft, protected and promoted, it seems by certain institutions of the state as well as certain very highly located personnel [elected and appointed] of the state? The loss of between $14bn and $18bn in annual revenue to crude oil thieves and their protected organized crime syndicates; But also a colossal and sustained devastation of the environment arising from the equivalent of a daily crude oil spillage rate of 40,000 barrels of crude per day, if we estimate a 10% rate of oil spillage from the grand daily crude oil theft rate of 400,000 barrels per day given the circumstances under which the theft is taking place!

So where has all of this left us? It has brought us to this historic juncture where the scale and scope of corruption has become such that it has become like an albatross weighing down and round the neck of our national economy; and impeding our national development, making it nearly impossible to undertake any sustained process towards combating the poverty and misery that have become the lived reality of more than 112 million Nigerians. It is why infrastructures cannot be built, why basic services cannot be provided, why we have an 18 million housing unit deficit, why unemployment grew from 8% to 24%, and youth unemployment to 50% in a period of 10 years.

What is the annual budget of the Federal Ministry of Agriculture [Less than N90bn] for example? What is the annual budget of Ekiti, or Osun, or Taraba, or Cross River states for example? Less than N120bn! Yet by some calculations, we lost N5.2tn to corruption and leakages in just 2 years [June 2010 to July 2012]; that is at an average Monthly Theft Rate of just over N220bn! This monthly theft rate is more than twice the grossly inflated contract for the Lokoja – Abuja Expressway construction; it is more than the N200bn deposit paid by the FGN as first installment for infrastructural overhaul of public universities!

The N8tn that is the subject of the claims and counter claims between the NNPC and CBN, both agencies of the same Federal Government; will cover for at least 7 annual Capital Votes of the annual Federal Budget; that is 7 years worth of public investment in infrastructural development!

What manner of blind, visionless, greedy, self-centered, and ruinously gluttonous ruling class is this? We continue to permit the overlordship of the treacherous, light fingered, and inept thieving treasury looting ruling class, only to our peril!

The Time To Act In Our Own Interests Is Now; Not Tomorrow, Not Next Year, Not during the 2015 General Elections; for at the precipitous rate at which this ruling class is steering our ship of state; it is debatable if our society can survive their calamitous greed!

It is our Country, Let Us Take Concrete and Immediate Steps To Take It Back From their Death Grip!

Follow me on Twitter: @jayegaskia & @[DPSR]protesttopower; Interact with me on FaceBook: Jaye Gaskia & Take Back Nigeria.


The views expressed in this article are the author’s own and do not necessarily reflect the editorial policy of SaharaReporters

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