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Posts tagged ‘Patience Jonathan’

President Jonathan Nigeria will soon be liberated •Post civil war reconciliation second to none —Gowon.


AGAINST rising insurgent activities in the North-East, President Goodluck Jonathan, on Sunday, assured that the country will be liberated from its present challenges, as he pointed out that other nations went through even worse situations in their history.

Speaking at an interdenominational service to round off the Centenary celebration of the country, at the National Christian Centre, Abuja, he asked Nigerians to show love, “even where it hurts most,” adding that he was confident that “Nigeria has a bright future that the children will be proud of.”

The president added that “the road has been rough, the challenges real, but with God on our side, the future is sure and Nigeria will surely be liberated by God’s grace.
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“Few days ago, all our leaders gathered and our nation honoured them for their labour of love. I see a new Nigeria filled with love. I see a new Nigeria with determination.

“I appeal to all of us to show love to one another more than ever before, regardless of tribe, religion or race. Let us show love, even when it hurts most.
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“We have our challenges but definitely, we have more opportunities in this country than challenges. Our challenges are very ephemeral. Other countries have passed through even more difficult challenges.”

Jonathan defended the celebration of the centenary, saying if other countries were celebrating less important issues, such as 200 years of ending wars by Sweden, Nigeria had every reason to celebrate and thank God for His mercies upon the country.

In his message on the occasion, the retired Prelate of the Methodist Church of Nigeria, His Eminence, Sunday Ola Makinde, implored the Federal Government  to expose the sources of funds of the Boko Haram insurgents.

“Without enemies within, enemies without cannot strike. Wherever they are, God will expose them, wherever they are, God will wage war against those waging war against Nigeria,” he said.

Also speaking, former head of state, General Yakubu Gowon, noted that the reconciliation achieved after the Nigeria Civil War was second to none.

He thanked all those who laid down their lives to keep Nigeria one, which made it possible for the country to celebrate its centenary.

Notable personalities at the event were the wife of the president, Patience; Chief Ernest Shonekan, Chief Tony Anenih, Honourable Emeka Ihedioha, Governor Theodore Orji of Abia State, service chiefs, among others.

Source: Radio Biafra.

Amaechi, New Rivers CP Ogunsakin Say No To Partisanship.


 

CP Ogunsakin
By SaharaReporters, New York

Newly appointed Rivers State Commissioner, Mr. Tunde Ogunsakin has promised to prosecute the state’s security affairs without bias to either the All Progressives Congress (APC), which Governor Rotimi Amaechi is a member of, or the Peoples Democratic Party (PDP) of President Goodluck Jonathan.

Speaking in Port Harcourt during an official visit to the governor, Ogunsakin assured that he would police the state without bias, as both the president and the governor have their respective roles in ridding the state of crimes.

“The President and Commander-in-Chief of the Armed Forces is the Chief Security Officer of the Federation while the Inspector General of Police is the Chief Law Enforcement Officer of the Federation”, he said.

“Also, in a state, the Executive Governor is the Chief Security Officer and the Commissioner of Police is the Chief Law Enforcement Officer of the State. This relationship is definitely best appreciated when it is harnessed to ensure peace and tranquillity in the state”.

Ogunsakin revealed his intention to collaborate with various communities, non-governmental organisations, and all other stakeholders. The result of this, he enthused, would be an objective, liberal, firm and non-partisan policing of the state.

“I will deploy my expertise to manage the affairs of the Rivers State Police Command in the best possible professional manner”, he assured. “I will strategically marshal a formidable operational plan that will speedily arrest the trend of all forms of criminality, particularly violent crimes in the state”.

Amaechi himself stated the readiness of the state government to cooperate with the Police in restoring law and order. But he noted that this would be impossible were the Police to support either of the two parties battling for the reins of the state in 2015.

“We are willing to cooperate with the Police to restore law and order. The only thing we need is for the Police to have the courage to restore law and order”, he said.

“The Police must do whatever it takes to restore law and order. Don’t support PDP, and don’t also support APC; just support Rivers people. Please don’t obey any illegal order from the Rivers State Government. What we want is a neutral police commissioner who is firm and [who] understands that the state needs to accommodate everybody — not one that loves to be in any of the political parties”.

Amaechi endured a rancorous relationship with former Commissioner of Police, Mr. Mbu Joseph Mubu, who was believed to be working for President Goodluck Jonathan and the PDP, notoriously banning all forms of political rallies in the state and proscribing activities of such pro-Amaechi groups as the Grassroots Development Initiative, Save Rivers Movement, and the Rivers Leadership Advancement Foundation, among many other blatant use of Police apparatus to negate pro-Amaechi individuals and associations.

In Quest Of Foreign Technical Administrators By Nehemiah Ikoba.


That public administrators, in general and sports administrators, in particular, have been found wanting in the discharge of their duties in Nigeria over the years, is a fact that is well established. This gross lack of performance by public officials can be seen as one of the leading reasons why Nigeria continues to decline, development-wise. The sad fact is that most of these officials, who have been handed the administration of Nigeria’s resources, see themselves as fool-proof repository of knowledge, not willing to imbibe new cultures and ways that will produce positive results, still willing to continue in their corrupt tendencies at the expense of the beloved masses of Nigeria.

The media has been awash with news that the Nigerian Football Federation (NFF) is planning to force a foreign technical assistant on Super Eagles tactician, Stephen Keshi, even though Coach Keshi has insisted that he is okay with his present back room staff. According to some media reports, the NFF members have expressed strong worries on the ability of the former Eagles captain to lead the team creditably at the 2014 World Cup, although the coach insists that he can operate at the highest level without any such fresh staff whether foreign or local.

The call became more vocal after the conclusion of the CHAN 2014, where these officials claimed that the Nigerian team lacked technical support, as shown in our performance in the semi-finals against 10-man Ghana and Zimbabwe in the third-place match. They allude that the inability of the Nigerian team to make its numbers count in those two matches were largely due to dearth of tactical inputs that would have led the team to resounding victory on those two occasions.

There were other allegations bordering on Keshi’s team selection and other sundry actions and inactions taken by the technical crew, including the team’s performance during the Confederations Cup in Brazil, last year.

Why is it that foreign assistants are only needed in the coaching front and not in the administrative sphere? Is the NFF claiming that they are performing their duties in the best possible way and moving Nigerian sports forward? The evidence in the public domain, as well as the views of concerned Nigerians is that sports administrators are not doing enough to move our sports to greater heights.

If one is to chronicle the numerous shortcomings of sports administrators in Nigeria, this write-up will be hugely inadequate. It should be noted that some of the actions of these acclaimed all-knowing eggheads of sports in Nigeria, clearly expose them as extremely inefficient, bereft of progressive ideas, highly unappreciative of Nigerian talent, extremely shortsighted and downright selfish.

The NFF has been always finding ways to put the proverbial spanner in the works of the current coach. This was clearly shown during the 2013 African Cup of Nations. These self-professed administrators of our football should try, through their actions, to clear the impression by Nigerians, who view them to be working more often than not, at cross purposes with the development ideals that would catapult the game to dizzying heights.
While not saying that these administrators should not make constructive criticisms, they should be careful, lest our treasure be snatched by those who value it more than we do.

That Keshi is a shrewd tactician is beyond perhaps, the earlier our football administrators give him his due regards, the better for us all. His performance at CAN 2013, where he showed tactical savvy to take Ivory Coast, with their coterie of global stars, and Mali to the cleaners, and won the competition should be brought to the fore. Even his performance during CHAN 2014 after the opening loss to Mali is also commendable.

The uncommon spirit and determination instilled in his wards at half time when they were being pummeled by the Moroccans is also worthy of mention.
It is an insult to insist that Africa’s current best tactician does not know his onions when he said he has no need of a foreign assistant.

When Keshi was owed his dues for upwards of seven months, did Nigerians request for a foreign administrator to take their jobs from them, even when it was obvious they have been found wanting in the discharge of their duties?
It is the height of extreme myopia for our football administrators to tie Keshi’s stay in the national team to Brazil 2014. We should be able to look beyond that. Such quick fire quest for results in the absence of a robust groundwork has done us greater harm than good. What prevents us from copying the model of Manchester United, who kept faith with their Manager for close to three decades and reaped bountifully? We should emulate such model of stability.

Come what may, if our football administrators make the mistake of sacking Keshi at the conclusion of the World Cup, methinks he will have more willing suitors even within a short time. As the Good Book says: A man’s gift makes room for him and brings him before great men.

We should respect the decisions of our coach and stop interfering unnecessarily.

Nehemiah Ikoba, University of Ilorin, Ilorin. Email: ikobanehemiah@yahoo.com

 

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

Again, A Case of Uncounted Billions By Okey Ndibe.


 

Okey Ndibe
Columnist:

Okey Ndibe

To a first-time visitor, much of Nigeria is likely to appear like the wreckage of a long war, what with its gutted roads, rutted infrastructure, the near-absence of electric power, and the paucity of pipe-borne water. It’s a developmental nightmare, a relic of the misshapen monuments of small-minded men and women, a patchwork of ill-conceived, abandoned projects.

Given Nigeria’s shape—or, more appropriate, its lack of shape—you’d expect a certain sense of urgency about transforming the space. You’d expect politicians and experts to focus at every opportunity on ways of creating a healthcare system worthy of human beings, revitalizing the educational sector, creating jobs for milling youths, providing basic facilities, and changing the moral tone.

Instead, what you find is a deranged obsession with a rat race whose sole goal is the primitive accumulation of riches. The country’s political leaders, who incidentally lead the rat race, seem to miss the point that the winners of such a race remain rats! Yes, a lot of them amass obscene sums of illicit wealth, but lucre merely raises their rating as ridiculous figures. The more they steal, the more they consolidate their contemptible quotient.

But Nigeria’s political “leaders” are far from the only problems. If anything, they seem to reflect a broader cultural malaise. Many Nigerians, one suspects, are hostile to the deep thinking that is a precursor to remarkable transformation. We’d much rather muck around in sectarian, ethnic and partisan baiting. Confronted with evidence of systemic collapse, many of us are content to blame Christians or Muslims, Igbo, Yoruba or Hausa, the North or South. We fail to realize that, where it counts, so-called Christian and so-called Muslim figures collaborate in schemes that impoverish the rest of us; that Igbo, Yoruba and Hausa politicians are not averse to acting together to corner looting opportunities; that men and women from the North and South work together daily to abort Nigeria’s promise.

The reportorial priorities of the Nigerian media mirror, I suggest, Nigerians’ little tolerance for substance. Despite Nigeria’s abysmal condition, it’s hard to see any serious debates in the media. It’s all about PDP this, APC that. Nobody, least of all the two parties’ top officials, can articulate what either party stands for. In lieu of any sustained presentation of ideas for making Nigeria a habitable address, both parties settle for parading personalities. What’s worse, the advertised political henchmen (and women) have pedigrees defined less by ideas than their possession of stupendous wealth.

You’d expect Nigerians to pay attention when somebody who ought to know talks about billions missing from the national treasury. But perish the thought!

Last week, Governor Sanusi Lamido Sanusi of the Central Bank of Nigeria appeared again before the Finance Committee of the Nigerian Senate, and spoke about huge frauds in the oil sector. Mr. Sanusi’s presentation rang with grave claims. Speaking with a directness hardly ever used by any past occupant of his seat, he accused the Nigerian National Petroleum Corporation (NNPC) of failing to account for $20 billion from crude oil exports. According to him, the NNPC sold $67 billion worth of crude oil, but deposited only $47 billion.

He told the committee that two companies, Seven Energy and Atlantic Energy (which he said were owned by the same persons), were beneficiaries of a curious deal with the Nigerian Petroleum Development Company (NPDC). The deal enabled the ostensible private investors to pocket billions of dollars that ought to belong to Nigeria, the CBN head asserted. He also spoke about “leakages from the system through opaque and complex Swap transactions between PPMC [Pipeline and Products Marketing Company] and some counter parties.” He added: “The Agreements signed by PPMC contained a troubling clause that permits the destruction of documents after one year.”

These are startling allegations, worthy of particular attention by Nigerians and their media. When I googled Mr. Sanusi’s presentation, I found that it received relatively tepid reportage in Nigerian newspapers. It was played up more by online media, especially those based outside of Nigeria.

Even if Mr. Sanusi were talking nonsense, the proper response would be for reporters versed in oil transactions to thoroughly dissect his presentation and expose his misrepresentations. Besides, President Goodluck Jonathan and his aides ought to debunk Mr. Sanusi’s allegations by providing proof that no money is missing. It’s far from an adequate response to point to the fact that the CBN governor’s figures have shifted since September, 2013. The discrepancies may point, in fact, to the complex, labyrinthine nature of the schemes used to defraud Nigerians.

The role of the media has been shameful—but let’s put it aside for now. How about labor unions, student organizations, and such professional bodies as the Nigerian Bar Association (NBA), the Nigerian Medical Association (NMA), and the Nigerian Guild of Editors? What explains their astonishing silence on the matter? Is Nigeria so affluent—so awash with cash—that $20 billion don’t count?

On the Internet, some anonymous commentators fixated on the fact that Mr. Sanusi, bearer of a disquieting message, is a Muslim and a Northerner. Some accused him of awarding billions of naira worth of contracts to his cronies. Others raised issues about his personal life. Mr. Sanusi’s faith and ethnicity have nothing to do with anything here. If he illegally awarded contracts, he deserves to be called on it—and prosecuted, if he broke the law. If there are lapses in his personal life, they should concern us only if he meddled with public funds. Otherwise, it is up to the stakeholders in his personal life to hold him to account, or choose not to.

If students, lawyers and editors didn’t find the case of the missing billions worthy of a single raised eyebrow, who would blame the rest of the populace for going on, unconcerned? It was as if most of us yawned and quickened our stride to that pepper soup joint! Few, if any, bothered to contemplate all the things that $20 billion could do for Nigeria.

I can’t help contrasting the collective indifference to Mr. Sanusi’s expose with the hysteria over former Vice President Atiku Abubakar’s decision to leave the PDP and enlist in the APC. Nigerian newspapers not only rushed to cover this relative non-event, they have also offered their readers numerous follow-ups.

You’d think that the answer to Nigeria’s crises of underdevelopment lie in Mr. Atiku’s choice to register with a party that has yet to spell out how it differs from the PDP, much less what answers it has for Nigeria’s worsening state.

Please follow me on twitter @ okeyndibe

(okeyndibe@gmail.com)

Source: SAHARA REPORTERS.

Two Missing As Ex-Militant Figure “Ogun Boss” Attacks Bayelsa Community In Police Gunboats.


 

By SaharaReporters, New York

There was pandemonium in Peremabiri, Southern Ijaw Local Government Area of Bayelsa, in the early hours of Saturday as youths from the area resisted a gunboat attack launched by ex-militant leader Monday Paul aka “Ogun Boss”.

Casualty figures remained unknown, but sources in the community said two persons were missing.

SaharaReporters learnt that the ex-militant leader got the Bayelsa Police Commissioner to release three police gunboats as well as police escorts for the operation.

The police command recently lost 11 policemen who were part of 50 policemen deployed to provide cover to an ex-militant.

A source in the community told SaharaReporters by telephone on Saturday morning that the police gunboat approached the coastal community about midnight and commenced shooting to scare residents.

The source stated that the youths of the community quickly mobilized and resisted the three gunboats which fired at the community from the creeks for more than 30 minutes.

The source said that the unarmed youths hauled stones at the boats until the gunfire attracted a naval patrol team assigned to protect a Shell flow station in the community.

The intervention of the naval team reportedly led to the arrest of the attacking gunboats and their occupants who were handed over to security agents in Yenagoa, the Bayelsa capital.

A source accused the ex-militant of seeking to foist his men as the leaders of Peremabiri community and to undermine the community’s current leadership with whom he had been having a running battle.

The police in Yenagoa refused to comment on the police commissioner’s  alleged deployment of policemen and three gunboats for “illegal operation.”

Congratulating The New Rivers State Police Commissioner By Niyi Osundare.


Compol Tunde Ogunsakin
By Niyi Osundare

Many Ikere – Ekiti sons and daughters   have greeted with a generous outpouring of congratulatory messages the just-announced posting of Mr. Ogunsakin  as Commissioner of Police to Rivers State.

That’s how it should be.

But many of these messages, in the main, have been full of hackneyed prayers and sentimental greetings. These are not enough.

Let us all wake up to the fact that Mr. Ogunsakin’s posting is not just another routine arrangement. He is being sent to a virtual battleground in a state where a costly but absolutely UNNECESSARY war has been waged for the past many months, a senseless war that has shown no signs of abating.

You don’t require a soothsayer to tell you that, from the way things are going, the fate of Nigeria’s present democracy may well depend upon how  the delicate war in Rivers State is handled. We are seeing in this state the acts of arrant stupidity, intolerance, and misuse of the so-called FEDERAL MIGHT that have been the bane of Nigeria’s several unsuccessful attempts at democracy. Once again, the monster is at our door. But as usual, we do not seem to see it.

People of our land, shine your eyes…

Mr. Tunde Ogunsakin will need all the courage, wisdom, hindsight and foresight he can muster to succeed in his new assignment. He must display a vital measure of that virtue that is in short supply in contemporary Nigeria: INTEGRITY. A healthy dose of the proverbial positive stubbornness and moral nerve that typified Ekiti character in the past will be an absolute must in the new assignment

So, compatriots, I say: mushy felicitations and ethnic back-slapping will not do for the new Rivers Commissioner of Police. He will need the benefit of our wise counsel, honest admonition, candid comments, and objective appraisal. And, yes, our goodwill too – which he cannot afford to take for granted.

So to Mr. Tunde Ogunsakin, our new Commissioner of Police to Rivers State, I say:  please be careful of the incubus called the Nigerian Factor. Never forget to think about life after power/after office. Remember the town from which you come.

May your baton be brave but kind.  May your medals shine without blinding the people. May your gun only respond to the extermination of evil. May you prove a true descendant of AJOLAGUN (the Ikere  Hero who danced through battle and emerged unscathed).

Your Compatriot,

Niyi Osundare

New Orleans,  Feb. 8, 2014.

Source: SAHARA REPORTERS.

How NNPC Illegally Diverted $20 Billion From The Federation Account -CBN Governor Sanusi.


 

CBN Governor, Sanusi Lamido Sanusi
By Sanusi Lamido Sanusi

I am pleased to stand before you and present a summary of my latest submission on this subject. The submission itself is about 20 pages long with 30 Appendices, providing documentary backing for all material statements. The background to this session remains my letter to the President in which I indicated that there was a difference between the value of crude lifted by NNPC between January 2012 and July 2013 and the amount of foreign exchange repatriated into the Federation Account. This difference was placed at almost $50 billion and I respectfully advised the President to order an investigation into a number of areas I suspected were responsible for leakages in oil revenue.

My letter was, sadly, leaked and published in a highly politically-charged atmosphere. The Central Bank was practically accused of involvement in politics and in December it was clear to me that no tempered and positive discussion would take place. In order to calm nerves and avert major crisis I agreed to a joint press conference with Finance Ministry, the Petroleum Ministry and also to present a common front at the National Assembly.

Since December, however, there has been an orchestrated campaign aimed at undermining our credibility and misleading Nigerians into believing that all monies due to the Federation Account have been either remitted or accounted for. I am, therefore, compelled to present to this committee detailed evidence that NNPC has in violation of the law and constitution been diverting money from the Federation Account, and involving itself in activities that warrant full investigation for more serious violations of the law.

I have established, in my presentation, the following:

1. That NNPC, in paying what it calls kerosene subsidy, is confessing to a number of serious infractions. First, I have shown, based on NBS data, that kerosene is not a subsidised product, and, therefore, the so-called subsidy is rent generated for the benefit of those in the kerosene business. Second, I have produced evidence that President Yar’Adua had issued a presidential directive eliminating this subsidy payment as from July, 2009. Third, these huge losses inflicted on the Federation Account have not been appropriated.

The burden of proof on NNPC is to show where they obtained authorization to purchase kerosene at N150/litre from Federation Funds and sell at about N40/litre, knowing fully well that this product sells in the market at N170-N220/litre. At what point was the presidential directive revered? NPA records would suggest that NNPC imports about 4-6 vessels of kerosene a month. Industry sources place the value of each vessel at $30m and the amount of “subsidy” per vessel at $20m. This means, at an average of 5 vessels a month, the Federation Account loses $100m every month to this racket.

2. I have also shown, in my submission, that claims by NNPC of spending the money on PMS subsidy are not credible. I have submitted proof that as from April, 2012, NNPC has consistently rendered returns to FAC indicating that it made no deduction for subsidy. This is after rendering returns on amount deducted monthly for 20 consecutive months to March, 2012. NNPC had previously explained that it had stopped deductions from 2011 and that the N180b taken in Q1:2012 related to fuel imports for Q4:2011. As from 2012, the directive was for NNPC to submit its papers to PPPRA, the relevant government agency set up and given the responsibility for verifying and paying subsidy claims. Having officially reported that it was not making deduction for fuel in 2012 and 2013, it is surprising that the GMD and GED of NNPC would now claim that $8.49b was used to pay for subsidy.

I am convinced that a major source of revenue leakage from the system is NNPC’s unverified claims for subsidy and unilateral deduction from the Federation Account. If we take the PPPRA template, subsidy/litre of PMS is about 1,136litre/MT, the subsidy is around N1.5b. This means that for every $1b claimed by NNPC as subsidy deduction, the corporation is claiming to have imported at least 100 vessels of PMS. In addition to the N180b reported in Q1:2011, NNPC had deducted N845 billion in 2011. According to the Farouk Lawan report, NNPC deduction for PMS subsidy in 2011 alone amounted to N1.7 trillion, if we add claims on Excess crude naira account. Any serious investigation into these matters will require an audit of NNPC’s database which it is statutorily required to keep based on subsidy guidelines. Only verification of the legitimacy of these claims can form the basis for a true reconciliation.

3. Based on NNPC’s disclosure to the effect that it shipped $6b worth of crude oil on behalf of NPDC, I have argued here that at least a part of this amount is due to the Federation Account. This part relates to oil produced from blocks operated under “Strategic Alliance Agreement”. I have given you three legal opinions that unanimously argue that these agreements merely serve to transfer revenue due to the Federation to private hands. I have also shown how, based on these arguments, NNPC has effectively given tax relief and concessions to its business partners.

Also customs duties and levies are treated as “development costs” and recouped from “cost oil” and “cost gas”. These companies recover OPEX and COPEX from production, take 20-70 per cent of the profit and pay no tax, on JVs in which the Federation was previously entitled to 55 per cent of the entire profit oil when Shell was the operator. I have given details of these transactions and my concerns in the paper.

4. Although the above 3 areas exhaust the areas covered in NNPC’s explanations, I have also taken time to submit my analysis of the crude-for-refined-product swap contracts entered into by PPMC. This is because a significant part of the domestic crude taken by NNPC is in these transactions. I have indicated where i believe we are losing money in these transactions.

Reconciliation
 :

Having thus explained my major opinions on NNPC‘s explanations, I will come to the reconciliation.

NNPC itself has submitted that it lifted $67b worth of Crude between January 2012 and July 2013. Of this, we have been able to agree that the following amounts have been remitted to the Federation Account:

1. $14 billion as equity crude

2. $15 billion as payment to FIRS by IOCs. They paid in crude which was lifted by NNPC on behalf of FIRS. There was nothing in our records linking the two transactions.

3. $2 billion Royalty payment to DPR by IOCs under similar arrangements as in (2) above.

4. $16 billion out of the 428b taken as Domestic Crude Paid in Naira, not dollar.

The following items are outstanding and need to be proven by NNPC:

1. $12 billion out of domestic crude sales yet to be remitted. NNPC has already disclosed N180 billion as subsidy payment in Q1.2012. If PPPRA confirms this number, we will adjust the balance accordingly. As for the balance of $10.8 billion, NNPC has publicly disclosed that 80 per cent applied to petrol and kerosene subsidy. We have already explained why this explanation is untenable and NNPC needs to provide the relevant proofs.

2. $6 billion shipped on behalf of NNPC. We have explained why some this belongs to the Federation and the need to investigate and audit the SAAS to recover amounts unconstitutionally diverted.

3. $2 billion “third-party” financing” we have not been given any documents explaining or proving this along with other claims around pipeline repairs, maintenance, strategic reserves etc.

There was no appropriation for these expenses and NNPC also needs to substantiate them.

In summary, it is established that of the $67 billion crude shipped by NNPC between January 2012 and July 2013, $47 billion was remitted to the Federation Account. It is now up to NNPC, given all the issues raised, to produce the proof that the $20billion unremitted either did not belong to the Federation or was legally and constitutionally spent. There is no dispute that $20 billion out of $67 billion has not been paid into any account with the CBN.

Our recommendation remains that this matter requires thorough independent investigation, as simple explanation will not suffice.

I concluded my submission with recommendation for the future, to protect the economy from these unsustainable losses.

I would like to make the following recommendations going forward:

Recommendations :

NNPC should stop collecting 440,000bbl daily as “Domestic Crude”. The amount of crude should be reduced to the refining capacity of its refineries based on a signed refining contract that clearly states what products are to be delivered for each barrel. Sale proceeds net of recognised processing costs are to go to the Federation Account;

All Crude for Product Swaps should be terminated and crude should be exported and sold at market price.

Where NNPC needs to generate cash flow to fund PMS imports, it can “borrow” crude, on the approval of the Finance Minister, for 90 – 120 days. This crude is to be valued at the ruling market price. NNPC may sell the crude, import PMS and sell through its outlets. It should claim subsidy from PPPRA like every other marketer and present all required documents. Thereafter, NNPC should pay back the full value of crude lifted to the Federation Account and retain the profit. Where NNPC delays payment, the amount outstanding should attract interest at commercial rates until payment.

All the SAAs entered into by NPDC should be investigated for constitutionality. The production numbers, Opex and Capex, and profit shares should be audited. The tax arrangements entered into with these parties should be reviewed and all revenues due to the Federation collected. If possible the SAAs should be terminated. Certainly, NNPC should be prohibited from entering into any SAAs in the future.

NNPC to account for subsidies claimed in 2010-13 by producing documentary proof of legitimacy.

As for what action needs to be taken on what has happened in the past, we express no opinion. The decision on what to do in this case rests entirely with the Government. My task is limited to raising an alarm over what I think is a development that is harmful to the economy, and establishing that the alarm was neither spurious nor baseless. I still insist that an investigation is needed to establish the extent of the losses and the nature of offence committed.

I believe I have placed enough information before this committee to make the point. The amount in 19 months may be $12 billion or $19 billion or $21 billion, we do not know at this point but if we extend the period the amount will increase anyway, since this has been going on for a long time. The first priority is to stop it. It is unsustainable, and it will ultimately, if not stopped, bring the entire economy to its knees.

Source: SAHARA REPORTERS.

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