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Ministry officials to refund N718m for improperly awarded contracts

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A Senate panel has revealed how the Ministry of Petroleum Resources paid N718 million through its tenders board to 11 corporate organisations for different services rendered without documents.

The discovery was as a result of the 2015 Auditor General Report submitted to the Senate Committee on Public Account chaired by Senator Matthew Urhoghide.

The Senate panel has recommended a refund of N718.9 million to the Federation Account by the government officials involved in the award of the contracts.

The panel’s findings showed that the contract was awarded in 2014 when the former Head of Service, Danladi Kifasi, was the Permanent Secretary of Ministry of Petroleum Resources.

Companies listed to have benefited from the consultancies are Amho Nigeria Ltd (Contract for consultancy service on critical stakeholders workshop on Liquefied Petroleum Gas (LPG) Policy Initiative at cost of N97.9million, Mimo Industrial Ltd (Contract for Consultancy Service on Project management for Liquefied Petroleum Gas (LPG) Policy Framework Development) at cost of N99.4 million, Peds Global Ventures (Contract for consultancy service on surveillance and monitoring of environmental restoration) at cost of N79.4 million, Crown-Tech Services Ltd ( Contract for consultancy service on capacity building for engineers to acquire tools surveillance and monitoring of environmental restoration) at cost of N82.2 million, DayLight Engeering Nigeria Ltd, (Contract for consultancy service on survey of oil and gas production and utilization in Nigeria) at cost of N48.1 million and Redbrick Consultants Ltd (Course fees oil and gas) at contract sum of N26.6 million.

It also revealed that about five consultancy contracts were awarded on July 14, 2014 while project on training was given out on October 17, 2014 and the payment was made in the 2015 budget.

The Auditor General of the Federation, in its report, stated that no further documents regarding payments were produced despite repeated request, adding the ministry failed to produce documents explaining and supporting the genuineness of the payments.

The query read, “An expenditure entry to N718.9 million was made in the cashbook as payment to 11 corporate bodies for different services rendered.

“Surprisingly, no further documents regarding this payment were produced for audit review despite repeated request, contrary to Financial Regulation 110 which states that ‘Auditor-General or his representative shall at all reasonable times have free access to books of accounts files, safes, security documents and other records and information relating to the account of all federal ministries /extra-ministerial offices and other arms of government or units.’

“Expenditure of this magnitude without documents explaining and supporting the genuineness of these payments cannot be accepted as legitimate charges against public funds.

“The permanent secretary has been requested to produce all documents recover and pay to treasury the sum of N718.9 million being expenditure un-accounted for and furnish recovery particulars for verification. “

The Ministry of Petroleum in its written submission presented by the Permanent Secretary, Bitrus Bako Nabasu, however said, “Relevant documents were attached to facilitate raising of payment vouchers and the total amount paid to contractors was N494.1 million.”

But the Chairman of the committee, Senator Urhoghide, and representative of Auditor General of the Federation, Eyitayo Agesin, said that documents attached to the vouchers were not enough to justify payment expenditure of that magnitude.

Meanwhile, the Senate Panel on Public Account has sustained a query of mismanagement of about N20 million against the Federal Ministry of Finance.

The lawmakers decided to sustain the query after the ministry ignored series of invitations extended to it by the Auditor General of the Federation with no response.

The chairman of the committee wondered how the ministry could be avoiding invitations to give account on the money spent, adding that the committee had sent invitations to the ministry on the issue with no response.

He said the committee had no other option than to sustain the Auditor General query against the ministry.

The query read, “A contract worth N2,477,900.00 was awarded by the ministry. It was observed that the contractor submitted a quotation before the invitation to bid for the contract was approved. This is contrary to the contract process when a bidding invitation is first sent to the contractor before the quotation. Also, the contractor’s tax clearance certificate was not provided by the contractor.

“The permanent secretary has been requested to explain these lapses.

“A sum of N2,768,760.54 which is equivalent of $13,919.00 was overpaid as estacode allowances to some staff of the ministry on foreign tours. This overpayment was done as a result of transit days which were included in their estacode allowances.

“However, this is contrary to Sections 130106 – 130108 of the Public Service Rules which stipulates that such allowances are granted to enable staff pay for lodging and feeding expenses during official hours duly approved by the approving authority.

“The permanent secretary has been requested to compel all the staff involved in the irregularity to refund the excess estacode allowances to the sub-treasury and forward the receipt to my office for confirmation.

“A total amount of N16,858,800.00 cash advances granted to some staff of the ministry between October and December, 2015 were not retired, contrary to Financial Regulation 420.

“The permanent secretary has been asked to compel the affected staff to retire the cash advances without further delay or deduct the amounts from the involved staff’s salary en-bloc and furnish my office with the retirement or deduction particulars for verification.”

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Aviation

Fani-Kayode Counters Keyamo, Defends Atiku Over Nigeria Airways Collapse

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Fani-Kayode Condemns Fresh Killing of Two Nigerians in South Africa

Fani-Kayode Counters Keyamo, Defends Atiku Over Nigeria Airways Collapse

 

Former Minister of Aviation, Femi Fani-Kayode, has challenged the criticism of former Vice-President Atiku Abubakar by the Minister of Aviation and Aerospace Development, Festus Keyamo, over the liquidation of Nigeria Airways and the non-payment of pension arrears owed to its former workers.

Fani-Kayode, who served as Minister of Aviation in 2006, argued that the defunct national carrier’s collapse resulted from years of mismanagement, corruption, mounting debts and operational failures that predated the return of former President Olusegun Obasanjo to democratic rule in 1999.

He made the remarks in a response to Keyamo’s statement on October 14, 2026, in which the aviation minister accused Atiku of hypocrisy over the airline’s liquidation in 2004 and the subsequent failure to pay its former employees their pensions and gratuities.

Keyamo had said President Bola Tinubu approved and released ₦36 billion to settle outstanding pension liabilities owed to former Nigeria Airways workers, adding that beneficiaries had begun receiving payment alerts.

In his response, Fani-Kayode acknowledged the Tinubu administration’s efforts to settle the outstanding liabilities but maintained that the history of the airline’s collapse required a broader examination of events preceding its liquidation.

According to him, Nigeria Airways was already in a critical state before Obasanjo returned to office in 1999.

Fani-Kayode recalled that when Obasanjo left office as military head of state in 1979, Nigeria Airways had 32 functional aircraft, experienced pilots and crew members, a competent management team and an accountable board of directors.

He said the airline was then regarded as a source of national pride but had deteriorated considerably over the following two decades.

By the time Obasanjo returned as elected president in 1999, Fani-Kayode claimed, only one aircraft remained, and it was not operational. He attributed the airline’s deterioration to years of alleged corruption, poor management and the disappearance of company assets.

He maintained that the liquidation process, which was completed in 2004, followed years of financial insolvency, operational collapse and unsuccessful attempts to rescue the airline.

Fani-Kayode also cited the withdrawal of the International Finance Corporation from privatisation-related efforts as part of the difficulties encountered in attempts to revive the company.

He said Obasanjo’s administration had little choice but to liquidate the airline rather than continue committing public funds to an organisation he described as having become practically irredeemable.

The former minister, however, acknowledged that the liquidation left thousands of former employees and their families facing prolonged financial hardship because their pension entitlements remained unpaid.

Recounting his own involvement in the matter, Fani-Kayode said a committee chaired by the then Head of the Civil Service of the Federation, Yayale Ahmed, recommended the release of funds to pay the pensioners.

He said that, as aviation minister in 2006, he presented a memorandum to the Federal Executive Council seeking approval for the payment of the outstanding entitlements and argued that settling the liabilities was the right thing to do.

However, according to him, the proposal was rejected after some members of the cabinet opposed it on the grounds that former management teams and boards of Nigeria Airways had contributed to the airline’s destruction.

Fani-Kayode said he disagreed with that position but acknowledged that those who supported payment were outnumbered during the deliberations.

He added that the issue was revisited under the late President Umaru Musa Yar’Adua, whose administration paid a substantial number of the pensioners. The administration of former President Muhammadu Buhari also made further payments, he said.

Commending Keyamo for the latest intervention, Fani-Kayode said he was pleased that the remaining pension liabilities had finally been addressed, while expressing regret that the payments had taken so many years.

He described the suffering endured by the former workers as immense and reiterated that paying their entitlements had always been the appropriate course of action.

On Atiku’s role in the Federal Executive Council deliberations, Fani-Kayode said he knew the position the former vice-president had taken during the debate but declined to disclose it publicly.

He argued that the eventual decision was a collective responsibility of the administration, adding that members of the government had to share the consequences of the outcome.

Fani-Kayode’s intervention has added another dimension to the political disagreement surrounding Nigeria Airways’ collapse, the handling of its former workers’ pension entitlements and the responsibilities of successive administrations.

While Keyamo credited the Tinubu administration with clearing the outstanding pension arrears, Fani-Kayode’s account focused on the airline’s long decline, the difficulties surrounding earlier efforts to pay its former employees and the involvement of successive governments in addressing the liabilities.

 

The dispute has also renewed attention on the fate of former Nigeria Airways workers, many of whom endured years of uncertainty while awaiting their retirement benefits.

 

Fani-Kayode Counters Keyamo, Defends Atiku Over Nigeria Airways Collapse

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OMAA Unveils Three CNG, Electric Buses, Offers 48-Month Vehicle Finance

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OMAA Unveils Three CNG, Electric Buses, Offers 48-Month Vehicle Finance

 

…Introduces ₦890,000 monthly payment plan as Nigerian mobility firm marks sixth anniversary

Nigerian vehicle and energy company, OMAA, has unveiled three passenger vehicle models in compressed natural gas (CNG) and battery-electric variants, alongside a financing scheme offering repayment periods of up to 48 months to help transport operators and corporate organisations expand their fleets.

The new models — OMAA U3 minibus, K7 bus and V12 high-capacity city bus — are designed to serve different segments of the passenger transport market, from urban shuttles and institutional transport to large-scale mass transit operations.

The announcement, which coincides with the company’s sixth anniversary, also marks the introduction of OMAA Finance, a programme developed in partnership with Nigerian financial institutions to ease the burden of upfront vehicle acquisition costs.

Under the scheme, advertised monthly payments start from ₦890,000 for the OMAA U3 minibus, with an initial deposit of 10%. Financing terms, however, will depend on eligibility requirements, repayment tenure and the customer’s equity contribution.

The company has also opened pre-orders for the three models, giving prospective buyers the option of choosing between CNG and battery-electric powertrains according to their routes, operating costs and access to the necessary energy infrastructure.

Speaking on the development, OMAA’s Managing Director, Chinedu Oguegbu, said the launch reflected the company’s commitment to local automotive manufacturing and the expansion of cleaner, more affordable transport solutions.

“Six years ago, we set out to demonstrate that commercial vehicles could be assembled in Nigeria and powered by cleaner, more affordable energy. Today, the introduction of the OMAA U3, K7 and V12 in both CNG and electric variants, alongside our vehicle financing programme, represents another significant step towards that vision,” Oguegbu said.

He explained that the company’s objective extended beyond supplying vehicles to helping operators manage running costs, access after-sales support and build sustainable transport businesses.

“By combining locally supported servicing, parts availability and structured financing, we are creating opportunities for schools, hospitals, corporate organisations and mass transit operators to expand their fleets with greater confidence,” he added.

Three models target different market segments

The new lineup covers a broad range of passenger transportation needs.

The OMAA U3 is a 12-to-15-seater minibus designed for urban and intercity transport operators, institutional shuttle services and businesses requiring compact passenger vehicles.

The K7, with a capacity of 23 to 30 passengers, targets staff transportation, school bus services, corporate fleets and medium-capacity passenger routes.

The V12, the largest of the three models, is configured to accommodate between 43 and 70 passengers. It is designed for mass transit operators and businesses serving routes with high passenger demand.

All three models are offered in CNG and battery-electric configurations, allowing fleet owners to evaluate alternative powertrains based on fuel or electricity costs, vehicle utilisation, maintenance requirements and access to refuelling or charging facilities.

The dual-powertrain strategy comes as transport operators increasingly explore ways to manage energy expenses and improve the economics of commercial vehicle operations.

 

Special-purpose vehicles broaden applications

Beyond passenger buses, OMAA is offering special-purpose vehicle configurations based on the same platforms.

The options include cargo vans, ambulances, VIP transport vehicles and airport shuttles, extending the potential applications of the company’s vehicle range to logistics, healthcare, corporate mobility and airport transportation.

The use of common vehicle platforms could also help fleet owners streamline maintenance, spare-parts management and technical training, particularly where organisations operate different vehicle configurations.

 

Finance scheme targets high acquisition costs

OMAA Finance is a central component of the company’s strategy to lower the barriers to commercial vehicle ownership.

By spreading acquisition costs over repayment periods of up to four years, the programme is intended to help operators preserve working capital while expanding or renewing their fleets.

The advertised starting monthly payment of ₦890,000 for the U3, subject to a 10% initial deposit, provides an entry point for prospective buyers. The actual cost of financing will depend on the applicable terms, including the vehicle price, deposit, interest and other charges, where applicable.

The company is also promoting a total cost of ownership (TCO) approach, which considers not only the purchase price but also energy consumption, servicing, spare parts and other expenses incurred throughout a vehicle’s operating life.

According to OMAA, the combination of structured financing, local servicing support and spare-parts availability is intended to help customers plan operating expenses and make more informed fleet investment decisions.

However, the potential savings will vary according to the vehicle selected, financing conditions, energy prices, mileage, maintenance costs and the availability of suitable CNG refuelling or electric charging infrastructure.

 

Six years of operations

Headquartered in Umunya, Anambra State, with offices in Lagos, Abuja and Accra, OMAA operates in Nigeria and Ghana, serving fleet operators, institutions and businesses.

The latest launch builds on the company’s six-year operating history and its efforts to combine local vehicle assembly, alternative energy solutions and financing options in the commercial mobility market.

For transport operators contending with rising operating expenses and the high cost of fleet expansion, the new models and financing arrangements offer additional options for acquiring passenger vehicles.

The initiative’s long-term impact, however, will depend on the vehicles’ performance under local operating conditions, the accessibility and affordability of financing, reliable after-sales support and the availability of the infrastructure required to sustain CNG and electric mobility.

With the latest unveiling, OMAA is seeking to position itself beyond vehicle supply, offering an integrated commercial mobility proposition that combines vehicle acquisition, alternative energy choices, maintenance support and financing.

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FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

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FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

The Federal Government has stepped up efforts to strengthen Nigeria’s automotive industry and promote more affordable transportation through collaboration with local vehicle manufacturers, following visits to two manufacturing facilities in Anambra State.

Board members of the National Automotive Design and Development Council (NADDC) inspected the facilities of Innoson Vehicle Manufacturing (IVM) in Nnewi and Kojo Motors Auto Assembly in Umunya to assess their production capacity, identify operational challenges and explore ways to support indigenous manufacturers.

The visit comes amid the Federal Government’s drive to expand the use of compressed natural gas (CNG) and electric vehicles as alternatives to petrol-powered transportation, with the aim of reducing operating costs and making public transport more affordable.

The manufacturers welcomed the government’s new policy directing ministries, departments and agencies (MDAs) to patronise locally manufactured vehicles, saying it could increase demand for their products and strengthen domestic production.

Secretary to the Government of the Federation, George Akume, had issued a circular directing government establishments to purchase vehicles from local manufacturers.

Managing Director of Innoson Vehicle Manufacturing, Chief Innocent Chukwuma, said he was encouraged by the government’s emphasis on CNG, describing the fuel as an important option for sustaining Nigeria’s automotive industry amid rising petrol and diesel costs.

Chukwuma disclosed that the company had dedicated its newest large-scale facility to producing CNG-powered trucks and electric vehicles.

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He said wider adoption of CNG could help lower transportation and operating costs while supporting local industrial growth and creating employment opportunities.

The industrialist also called for stronger backward integration in the automotive sector, arguing that manufacturers should focus on producing components that Nigeria has the capacity to manufacture competitively.

At the Umunya facility, the executive director of Kojo Motors, Chinedu Oguegbo, said the company was concentrating on commercial vehicles designed for Nigeria’s transport needs.

He said the company had begun benefiting from the government’s local vehicle procurement policy but had faced challenges arising from the sharp depreciation of the naira and exchange-rate fluctuations.

Oguegbo added that the company was developing its natural gas facility, which he expected to become operational in the future. He also expressed optimism that the company’s Omma Bus brand could eventually be exported to international markets.

NADDC Director-General Oluwemimo Joseph said the inspection was intended to give the council first-hand knowledge of the challenges confronting local vehicle manufacturers.

He explained that the council was reviewing existing policies and working on proposed legislation to improve the operating environment for the industry.

According to him, information gathered during the visits would help the council develop measures to address manufacturers’ concerns and identify vehicle components that could be produced locally.

Joseph said Nigeria had numerous small and medium-sized enterprises capable of supplying components to the automotive industry, adding that stronger partnerships could create new business opportunities and reduce dependence on imported parts.

He also acknowledged concerns about the effect of imported used vehicles on local manufacturers, noting that the council was considering measures to address the competitive disadvantages faced by domestic producers.

NADDC Chairman, Chief Emma Eneukwu, said the council was advocating legislation to protect local vehicle manufacturers from the influx of imported used cars.

He argued that local producers needed a more supportive policy environment to compete effectively and expand production.

The Federal Government’s broader CNG and electric mobility programme is designed to reduce transport costs by encouraging the deployment of vehicles powered by alternative energy sources. However, the impact on passenger fares will depend on the availability of vehicles, refuelling infrastructure, operating costs and the extent to which transport operators pass savings on to commuters.

The Anambra visits form part of efforts to strengthen local manufacturing, encourage investment and improve the availability of vehicles for Nigeria’s public transportation system. While the collaboration could support cheaper transport over time, the visits did not announce a specific new fare reduction or implementation timetable.

 

FG Moves to Expand CNG Vehicle Production, Targets Cheaper Transport Fares

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