Business
NNPC denies operating secret account, says fuel subsidy gulps N2.6tn
The Nigerian National Petroleum Company Limited (NNPCL) has not remitted any amount to the federation account since the beginning of this year as the company’s deduction for petrol subsidy rose to N2.565 trillion at the end of August 2022.
A new report by the NNPC revealed this even as the company denied any involvement in the operation of any secret bank account, stating that the Office of the Accountant General of the Federation (OAGF) was aware of its financial transactions.
An analysis of NNPC’s monthly presentation to the Federation Account Allocation Committee (FAAC) at the weekend, further showed that the NNPCL has so far spent N2.565 trillion on the controversial subsidy this year.
Information from the FAAC meeting had earlier revealed that the money available for distribution among the three tiers of government for the month slumped by N280.948 billion to N673.137 billion when put aside the N954.085 shared in July.
Of the amount, the Federal Government received N259.641 billion; the states received N222.949 billion, while the local governments got N164.247 billion.
“The sum of N525,714,373,874.60 being federation account share was used to defray value shortfall/subsidy for the month,” the NNPCL stated in a document quoted by TheCable.
According to the national oil firm, in January, February, March, and April 2022, the petrol subsidy gulped N210.38 billion, N219.78 billion, N245.77 billion and N271.13 billion respectively.
Furthermore, in May, June, and July, the country spent N327.07 billion, N319.18 billion and N448.78 billion respectively before the hugest deduction of N525.71 billion in the latest instance.
The NNPCL also on Saturday said it was not involved in the operation of any secret bank account.
It said that the Office of the Accountant General of the Federation (OAGF) was aware of its financial transactions.
In a thread on its verified Twitter handle last night, signed by the spokesman for the national oil company, Mr Garba Muhammad, the company explained that it was unaware of the existence of any such account.
The House of Representatives a few days ago said it was probing the structure and accountability of the joint venture businesses and Production Sharing Contracts (PSCs) of the NNPCL in the last 32 years.
The lawmakers had alleged that they had uncovered a secret account owned by the NNPCL allegedly in breach of due process.
The report stated that an official of the OAGF, Mr Chize Peters, disclosed to the Abubakar Fulata-led Adhoc committee probing the matter.
The committee was said to have directed the Group Chief Executive Officer of the NNPCL, Mele Kyari, to appear before it to offer explanations on the issue.
But in a series of tweets, the spokesman of NNPCL said, “The NNPCL, directly or through its upstream arm, the National Petroleum Investment Management Services (NAPIMS), does not operate secret accounts at all.
“The joint venture cash call accounts denominated in US Dollars and Nigerian Naira are all domiciled with the Central Bank of Nigeria in line with the Treasury Single Account (TSA) policy.
“The Joint Venture Cash Call (JVCC) NGN and USD accounts were created to cater for the funding of cash calls for the various Joint Ventures managed by NNPCL on behalf of the Federal Government,” the company said.
The statement added that the ‘Joint Venture Proceeds Accounts’ were opened for the individual JVs to implement the self-funding strategy which aims at making them be self-reliant.
“The Office of the Accountant-Gen. of the Federation (OAGF) is fully aware of the JVCC accounts as the OAGF regularly sanctions & approves the updates/change of signatories to the accounts.
The NNPCL has documents where these correspondences with the OAGF were acknowledged.
“The NNPC/NAPIMS books of accounts in respect of the federations upstream petroleum activities are audited annually by independent external auditors,” the national oil company said.
According to the NNPCL, a critical part of the independent statutory audit is sending ‘circularisation’ to banks to confirm balances and bank accounts belonging to NNPC/NAPIMS.
It stressed that Audited Financial Statements (AFS) are submitted to all stakeholders including the National Assembly.
In addition, the company stated that the OAGF conducts periodic (yearly) checks on the activities of NNPC/NAPIMS, maintaining that the activities of the NNPCL and NAPIMS are audited yearly by the Nigerian Extractive Industry Transparency Initiative (NEITI).
“NNPCL has documented evidence of the correspondences between the company and the OAGF before the accounts were opened with the @cenbank, in line with the Treasury Single Account (TSA) policy.
“We also have evidence of reconciliations carried out with the @cenbank for the year ended 31-12-2021 in respect to the JV Cash Call Accounts.
“Thus, with such multiple layers of checks and balances, it is impossible for @nnpclimited to operate secret accounts until the ad hoc Committee, with due respect to its competencies, discovers it.
“If such ‘secret account’ does exist, then @nnpclimited certainly is not aware of, and has absolutely nothing to do with it,” the statement concluded.
Railway
Lagos Rail Mass Transit part of FG free train ride – NRC
Lagos Rail Mass Transit part of FG free train ride – NRC
The Nigerian Railway Corporation (NRC) has disclosed that the Lagos Rail Mass Transit (LRMT) trains are included in the Federal Government’s free train ride initiative for the Christmas and New Year celebrations.
The LRMT, which currently includes the Phase 1 Blue Line Rail and the Phase 1 of the Red Line Rail, operates under the Lagos Metropolitan Area Transport Authority (LAMATA).
This announcement was made by Ben Iloanusi, the Acting Managing Director of the NRC, during an interview on NTA News TV on Friday, following the launch of the initiative earlier that day.
While Iloanusi stated that Phase 1 of both the Blue Line and Red Line Rail projects are part of the program, LAMATA has yet to confirm this inclusion.
READ ALSO:
- Nigeria denies alleged plot to destabilise Niger Republic
- Navy arrests 19 Nigerians attempting to reach Europe by hiding on ship
- Troops arrest four Ambazonian rebels in Taraba
Iloanusi outlined the other routes benefiting from the scheme, which include the Lagos-Ibadan Train Service, Kaduna-Abuja Train Service, Warri-Itakpe Train Service, Port Harcourt-Aba Train Service, and the Bola Ahmed Tinubu Mass Transit in Lagos. Notably, little was previously known about the Bola Ahmed Tinubu Mass Transit service until this disclosure.
“Let me mention the routes where this free train service is happening. We have the Lagos-Ibadan Train Service, we have the Kaduna-Abuja Train Service, we have the Warri-Itakpe Train Service, we have the Lagos Rail Mass Transit trains, we have the Port Harcourt-Aba Train Service, and we have what we call the Bola Ahmed Tinubu Mass Transit, which is also in Lagos,” he stated.
Iloanusi provided operational updates, stating that passengers nationwide can access free tickets online or, for those unable to do so, at train stations where they will be profiled and validated.
He noted that passengers using NRC-managed services (excluding the Lagos Rail Mass Transit) should reserve tickets via the official website, www.nrc.gov.ng, with a valid ID required. He also advised travelers to plan, arrive on time, and bring valid identification.
Lagos Rail Mass Transit part of FG free train ride – NRC
Business
NNPC denies claim of Port Harcourt refinery shutdown
NNPC denies claim of Port Harcourt refinery shutdown
The Nigerian National Petroleum Company Limited (NNPCL) has denied claims in media reports that the newly refurbished Port Harcourt refinery has shut down.
The national oil company denied the claim in a press release issued by its Chief Corporate Communications Officer, Olufemi Soneye, on Saturday.
Soneye said the claim was false and urged Nigerians to disregard it. He stressed that the Port-Harcourt Refinery is fully operational.
READ ALSO:
- Like Ibadan, stampede claim 10 lives for Abuja Catholic church, 17 in Anambra
- Marketers react after NNPCL slashes petrol price to N899 per litre
- Electricity: We installed 184,507 meters, issued 50 licences in Q3, says FG
The statement read, “The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd.) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.
“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.”
He noted that preparation for the day’s loading operation is currently ongoing, and added that claims of the shutdown are “figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”
NNPC denies claim of Port Harcourt refinery shutdown
Business
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
The Central Bank of Nigeria (CBN) has granted Bureau de Change (BDC) operators temporary permission to purchase up to $25,000 weekly in foreign exchange (FX) from the Nigerian Foreign Exchange Market (NFEM).
This move, detailed in a circular dated December 19, 2024, is designed to meet seasonal retail demand for FX during the holiday period.
The circular was signed by T.G. Allu, on behalf of the Acting Director of the Trade and Exchange Department.
The arrangement will be in effect from December 19, 2024, to January 30, 2025.
Under the directive, BDCs may purchase FX from a single Authorized Dealer of their choice, provided they fully fund their accounts before accessing the market.
Transactions to occur at the prevailing NFEM rate
The transactions will occur at the prevailing NFEM rate, and BDCs are required to adhere to a maximum 1% spread when pricing FX for retail end-users.
READ ALSO:
- Badenoch’s negative portrayal of Nigeria Police unfair-PCRC
- Bitcoin price crashes to $95,000 as market continues to react to Federal rate cuts
- Bauchi high court dismisses blasphemy, cybercrime charges against Rhoda Jatau
All transactions conducted under this scheme must be reported to the CBN’s Trade and Exchange Department.
The circular read in part:
“In order to meet expected seasonal demand for foreign exchange, the CBN is allowing a temporary access for all existing BDCs to the NFEM for the purchase of FX from Authorised Dealers, subject to a weekly cap of USD 25,000.00 (Twenty-five thousand dollars only).
This window will be open between December 19, 2024 to January 30, 2025.
“BDC operators can purchase FX under this arrangement from only one Authorized Dealer of their choice and will be required to fully fund their account before accessing the market at the prevailing NFEM rate. All transactions with BDCs should be reported to the Trade and Exchange department, and a maximum spread of 1% is allowed on the pricing offered by BDCs to retail end-users.”
The CBN assured the general public that PTA (Personal Travel Allowance) and BTA (Business Travel Allowance) remain available through banks for legitimate travel and business needs.”
These transactions are to be conducted at “market-determined exchange rates” within the NFEM framework.
This initiative reflects the CBN’s strategy to stabilize the FX market and manage seasonal surges in demand.
CBN permits BDCs to buy up to $25,000 FX weekly from NFEM
-
Railway17 hours agoLagos Rail Mass Transit part of FG free train ride – NRC
-
metro2 days agoCourt stops customs from seizing imported rice in open market
-
metro3 days agoFG transfers electricity market regulatory oversight in Lagos to LASERC
-
metro2 days agoIbadan stampede: Tinubu orders probe as death toll hits 40
-
metro2 days agoAfe Babalola: Court grants Dele Farotimi bail, barred from media interviews
-
metro18 hours agoNIMC warns against extortion, reaffirms free NIN enrollment
-
metro1 day agoIbadan stampede: Ooni reacts after arrest of ex-wife
-
News2 days agoAdebayo Ogunlesi, 2 other Nigerians make Forbes 50 wealthiest Black Americans list 2024