Posted By: GEORGE OJI

…says increment to avert future scarcity

The Senate has added N108bn to the N413bn contained in the supplementary appropriation request sent to it by President Muhamadu Buhari for approval for the payment of outstanding fuel subsidy to oil marketers.FUEL-SCARCITY

The addition, which was proposed by the Senate Appropriation Committee yesterday, is to cover fuel subsidy for the last quarter of this year.

This new addition has therefore brought the total outstanding fuel subsidy requirement to N521bn. The lawmakers explained that the new addition was not part of the N413bn requested for by the President. Read More →



From Juliana Taiwo-Obalonye, Abuja


•Says Diezani’s travail, tip of iceberg

Edo State Governor Adams Oshiomhole yesterday disclosed in Abuja how former president Goodluck Jonathan spent N3.5 trillion funds of Pension Commission (Pencom) and Ministry of Finance on recurrent expenditure.
The governor also said despite the media hype by the former administration that it rebased the economy, the impact was not felt by Nigerians.Adams-Oshiomhole
He said he was not surprised by the current travails of former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke in the United Kingdom insisting the nation’s economy was badly managed over the years.
Oshiomhole spoke with State House correspondents after meeting with President Muhammadu Buhari in Aso Rock, Abuja:
“I don’t think anybody should be surprised (about the former minister’s travails) because the most favourable commentator on the Nigerian condition, both the economy, the polity and society, everybody agree that our economy was badly mismanaged over the past several years. I have not seen one commentator that disagrees. Read More →




The Senate Committees on Petroleum Resources (Upstream and Downstream) have summoned Finance Minister, Dr Ngozi Okonjo-Iweala and Petroleum Minister, Diezani Alison-Madueke, to appear before them on Monday over lingering fuel scarcity.Kerosene-Queue

According to a statement by the Chairmen of the committees, Sen. Paulker Emmanuel (PDP-Bayelsa Central) Upstream and Sen. Magnus Abe (PDP-Rivers South-East) Downstream, the Group Managing Director, Nigerian National Petroleum Corporation, Managing Director, Petroleum Pricing and Regulatory Agency and the Director, Department of Petroleum Resources were also summoned.

The others were representatives of the Major Oil Marketers Association of Nigeria, Independent Petroleum Marketers Association of Nigeria and the National Association of Road Transport Owners. Read More →



 

ABUJA – The Minister of Power, Prof. Chinedu Nebo, said that the Federal government has the capacity to deliver 5,500 megawatts of electricity to Nigerians regularly if there was adequate gas supply.
Nebo said this when he fielded questions from State House correspondents after the meeting of the Board of the Niger Delta Power Holding Company (NDPHC) in Abuja.nebo
According to him, the benefits of the power projects were denied the citizens by the activities of pipeline vandals
“With regard to our generation today, I would like to make a differentiation between installed capacity and available capacity.
“Because of the projects that have commissioned, we have a capacity now to deliver minimum of 5,500mw with gas because when I talk about availability, we are also talking about gas. Read More →



Okechukwu Nnodim and Ifeanyi Onuba


Petrol scarcity in Abuja and neighbouring states of Kaduna and Nasarawa has continued despite assurances by the Federal Government that the issue is being addressed.Fuel-scarcity-hits-Lagos-worsens-in-Abuja

The scarcity worsened on Monday as hundreds of motorists queued for long hours to buy the product at the few filling stations that sold petrol.

Hawkers of petrol in jerry cans cashed in on the scarcity and sold the product at exorbitant rates to motorists and other users. Read More →



by Agency Reporter

 


A total of $183m (N28.73bn) in signature bonuses paid by oil companies to the federation is missing, according to a confidential report seen by Reuters.

Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke | credits:

A team headed by the former Chairman, Economic and Financial Crimes Commission, Mallam Nuhu Ribadu, produced the 146-page study based on the Ministry of Petroleum Resources’ request. It covers the year 2002 to 2012.

The report said that Ministers of Petroleum Resources between 2008 and 2011 handed out seven discretionary oil licences, but that $183m in signature bonuses was missing from the deals.

Three of the oil licences were awarded since the current minister, Mrs. Diezani Alison-Madueke, took up her position in 2010, according to the report.

“I have not given any discretionary awards during this administration,” Alison-Madueke told Reuters, although she added that the President had the right to do so instead of using bids if he saw fit.

“That is entirely up to him,” she said.

Nigeria is Africa’s largest crude oil exporter, shipping more than two million barrels per day, and is also home to the world’s ninth biggest gas reserves and one of its largest Liquefied Natural Gas export terminals.

The report provides new details on the nation’s long history of corruption in the oil sector, which has enriched its elite and provided the oil majors with hefty profits, while two thirds of the people live in poverty.

Alison-Madueke, told Reuters on Tuesday that she received the report last month but that it was a draft and the government was still supposed to give input.

The one seen by Reuters was labelled “Final Report.”

The report concluded that oil majors, Shell, Total and Eni, made bumper profits from cut-price gas, while oil ministers handed out licences at their own discretion. This, while not illegal, did not follow best practice of using open bids.

Hundreds of millions of dollars in signature bonuses on those deals were also missing, it said.

“We have not seen this report and are, therefore, unable to comment on the content, but we will study it if and when it is published,” a Shell spokesman said.

The report alleges international oil traders sometimes buy crude without any formal contracts, and the state oil firm, the Nigerian National Petroleum Corporation, had short-changed the Nigerian treasury billions over the last 10 years by selling crude oil and gas to itself below market rates.

There was no suggestion that the oil majors or traders had done anything illegal, but the report highlighted a lack of transparency in their dealings in a nation rife with graft.

“It is a draft,” Alison-Madueke said. “There will be some areas where the government … may have a slightly different opinion … (and) will put its point of view to the committee.”

She said she expected the final report to be with President Goodluck Jonathan within two weeks.

Ribadu’s probe was among several set up following a week of nationwide strikes against a rise in fuel prices in January, which morphed into a campaign against oil corruption.

Billions of dollars of revenue was missing in unpaid debts from signature bonuses and royalties, the report found.

Nigeria LNG, a company jointly owned by the NNPC, Shell, Total and Eni, had paid the country for gas at cut-down prices before exporting it to international markets, the report said.

Total and Eni declined to comment because they invest in but do not operate Nigeria LNG, the role played by Shell.

“The estimated cumulative of the deficit between value obtainable on the international market and what is currently being obtained from NLNG, over the 10-year period, amounts to approximately $29bn,” the report said.

It also said foreign oil firms had outstanding debts.

Addax, now a unit of China’s state-owned Sinopec, owes Nigeria $1.5bn in unpaid royalties, part of a $3bn black hole of unpaid bonuses and royalties owed by oil firms.

Addax did not respond to requests for comment, but the report noted it disputed owing the signature bonuses.

Shell owes the Federal Government N137.57bn for gas sold from its Bonga deep offshore field, the report said, while oil majors owed $58m between them for gas flaring penalties. They were also not adhering to newer higher fines.

The probe also said Nigeria was the only nation to sell all its crude through international oil traders rather than directly to refineries, adding that such trades were often opaque.

It said some international oil traders who were not “on the approved master list of customers” had been sold crude oil “without a formal contract” so little could be obtained about the details of these deals, which could be worth hundreds of millions of dollars.

“This logically will serve to reduce margins obtainable on sale of crude oil,” the report said.

But Alison-Madueke disputed this, saying there were no informal contracts and there was “an official tender put out every year,” which could be seen by the public in newspapers.

The state oil firm gets an allocation of 445,000 barrels per day of crude oil to refine locally, but it has been selling itself this oil at cut-down prices, a practice which cost Nigeria $5bn in potential revenue between 2002 and 2011, the report said.

“NNPC buys at international rates,” Alison-Madueke retorted.

The report said the NNPC made N86.6bn over the 10-year period by using overly generous exchange rates in its declarations to the government. There was no sign of the money.

Among the report’s recommendations were that parts of NNPC be reorganised or scrapped, an independent review of the use of traders be set up and a transparency law be passed requiring oil companies to disclose all payments made to Nigeria.

United States regulators put new rules in place in August that will require US-listed oil and gas companies to disclose payments they make to foreign governments like Nigeria.

 



By Henry Umoru

 


Sambo to purchase foodstuff with N112.5m
ABUJA — STATE House Headquarters will in 2013 spend N327,154,931 on refreshment and meals and N406, 738,969 to purchase food stuff, just as Vice President Namadi Sambo would spend N112,500,000 to purchase food for the 2013 fiscal year.According to the 2013 budget details, to fuel generators in the State House headquarters, the Presidency will spend N72,510,832 while N553, 056,411 will be for honorarium and sitting allowance.

The total allocation to the Presidency stands at N35,545,673,132, with total personnel put at N11,476,593,929; total overhead is N11,569,079,204, with total recurrent put at N23,045,673,132 and total capital stands at N12,500,000,000.

According to the budget breakdown, Vice President Sambo will spend N123,405,499 on refreshment and N7,020,750 to purchase cooking gas, just as State House headquarters plans to spend N14,471,035,290, with N1,510,196,776 on personnel; N7,476,942,494 as overhead, while total recurrent stands at N8,987,137,260 and total capital is N5,483,896,030.

The State House headquarters also plans to spend N195,066,223 on welfare packages and N6,400,000 for cooking gas.

From left: Vice President Namadi Sambo; Secretary General of International Telecommunication Union, ITU, Dr. Hamadoun Toure and Mr. Navin Kapila, Non Executive Director, Telkom South Africa, after Sambo’s presentation at the ongoing ITU World 2012, where he represented President Goodluck Jonathan.

According to the budget breakdown, the Economic and Financial Crimes Commission, EFCC, which plans to spend N9,328,155,023 in the year 2013, will purchase a land for N2,000,000,000, while its uniforms and other clothing will gulp N24,160,048; maintenance of generators will cost N8,629,595, clearing and fumigation will cost N5,370,011; Honorarium and sitting allowance will take N17,087,106 and to fuel vehicles, the Commission plans to spend N31,976,146 while fuelling generators will cost N74,341,739.

Also in the 2013 budget breakdown, the Minister of Petroleum Resources, Mrs Diezani Alison- Madueke, plans to spend N60,834,291,536 this year, just as water pollution prevention and control would gulp N1,200,731,099, with N22,525,507 for the fuelling of generators and N25,036,076 to maintain the generators.

According to the breakdown, the Ministry of Petroleum Resources will spend N50,583,648,005 as personnel cost, N1,850,643,531 as overhead, N52,334,291,536 for recurrent and N8,500,000,000 as total capital.

Also, the Minister of Niger Delta, Elder Godsday Orubebe, plans to spend N26,226,833 on refreshment and meals while security will gulp N305,000,889, just as the total allocation to the ministry for the year 2013 stands at N63,392,377,074, with N913,207,171 for personnel cost, overhead cost is N1,475,169,903; total recurrent is N2,392,377,074 and N61,000,000 as total capital estimate.

The ministry also plans to spend N24,955,661 to fuel vehicles, N21,015,293 to fuel generators and honorarium and sitting allowance will be N44,363,766.