SERAP sues Tinubu over ‘failure to probe missing $2.1bn, N3.1trn of subsidy payments’ – Newstrends
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SERAP sues Tinubu over ‘failure to probe missing $2.1bn, N3.1trn of subsidy payments’

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President Bola Ahmed-Tinubu with SERAP

SERAP sues Tinubu over ‘failure to probe missing $2.1bn, N3.1trn of subsidy payments’

Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against President Bola Ahmed Tinubu over “the failure to probe the allegations that USD$2.1 billion and N3.1 trillion public funds of oil revenues and budgeted as fuel subsidy payments are missing and unaccounted for between 2016 and 2019.”

The suit followed the grim allegations documented by the Auditor-General of the Federation in the 2016 and 2019 annual reports that the public funds are missing.

In the suit number FHC/L/CS/1107/23 filed last Friday at the Federal High Court in Lagos, SERAP is seeking: “an order of mandamus to direct and compel President Tinubu to promptly probe allegations that USD$2.1 billion and N3.1 trillion public funds are missing and unaccounted for between 2016 and 2019.”

SERAP is also seeking: “an order of mandamus to compel President Tinubu to direct the anti-corruption agencies to promptly probe fuel subsidy payments made by governments since the return of democracy in 1999, name and shame and prosecute suspected perpetrators, and to recover any proceeds of crimes.”

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SERAP is also seeking: “an order of mandamus to direct and compel President Tinubu to use any recovered proceeds of crime as palliatives to address the impact of the subsidy removal on poor Nigerians, and to put in place mechanisms for transparency and accountability in the oil sector.”

In the suit, SERAP is arguing that: “The allegations that US$2.1 billion and N3.1 trillion of public funds are missing and unaccounted amount to a fundamental breach of national anticorruption laws and the country’s international obligations including under the UN Convention against Corruption to which Nigeria is a state party.”

SERAP is also arguing that, “The Tinubu government has constitutional and international legal obligations to get to the bottom of these allegations and ensure accountability for these serious crimes against the Nigerian people.”

According to SERAP, “Directing and compelling President Tinubu to promptly probe, name and shame and bring to justice the perpetrators and to recover any missing public funds would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.”

SERAP is further arguing that, “Allegations of corruption in fuel subsidy payments suggest that the poor have rarely benefited from the use and management of the payments.”

The suit filed on behalf of SERAP by its lawyers, Kolawole Oluwadare, Ms Adelanke Aremo, Ms Valentina Adegoke, and Ayomide Johnson, read in part: “There will be no economic growth or sustainability without accountability for the human rights crimes.”

“Poor and socio-economically vulnerable Nigerians should not be made to continue to pay the price for the stealing of the country’s oil wealth while state and non-state actors pocket public funds.”

“Investigating and prosecuting the allegations, and recovering any missing public funds would serve the public interest, ensure justice and accountability, and end the entrenched impunity of perpetrators.”

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“According to the audited reports between 2016 and 2019 by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation (NNPC) failed to remit N663,896,567,227.58 into the Federation Account. The Auditor-General fears that the money may be missing.”

“The NNPC also reportedly failed to account for the allocation of crude oil to refineries in 2019. 107,239,436.00 barrels of crude oil were lifted as domestic crude without any document. The Auditor-General fears that the crude valued at N55,891,009,960.63 may have been diverted.”

“The NNPC in 2019 also failed to remit N1,955,354,671,268.66 and N55,157,702,848.74 of generated revenues into the Federation Account, contrary to Section 162(1) of the Nigerian Constitution 1999 [as amended]. The Auditor-General fears that the money may have been diverted.”

“The NNPC also failed to account for N4,572,844,962.25 of ‘domestic gas receipts’, thereby ‘reducing the distributable revenue in the Federation account.’ The NNPC also in 2019 failed to account for 22,929.84 litres of PMS pumped from refineries and valued at N7,056,137,180.00.”

“The NNPC also ‘illegally classified’ 239,800 barrels of crude oil valued at N5,498,045,220 as ‘crude oil losses.’”

“The Department of Petroleum Resources (DPR) in 2019 also reportedly failed to remit US$1,278,364,595.49 in revenue to the Federation Account. The money was deducted by the NNPC from the Oil and Gas Royalty assessed by the DPR.”

“The DPR in 2019 also deducted N19,840,081.29 as ‘stamp duty’ payments from contractors and consultants but the DPR instantly paid back the money to the contractors and consultants instead of remitting it to the treasury.”

“The DPR in 2019 also paid N137,225,973.35 to contractors and consultants for various contracts and consultancies but failed to deduct stamp duty.

“The DPR also paid N11,856,088,271.92 as salaries for 2019 but failed to deduct N118,560,882.72 as contribution of 1% Industrial Training Fund (ITF). The DPR in 2019 also failed to transfer US$35,738,342.95 year balance.

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“The DPR in 2018 also withdrew without any explanation US$759,387,755.10 from DPR Signature Bonus Account rather than paid the money into the Federation Account.”

“Subsidy records show that N443,940,559,974.80 was paid as total subsidy for 2016 but the money was not budgeted for.  The payments were for outstanding Petroleum Support Fund (PSF) commitments for year 2015. However, there was no payment in 2016. Only outstanding payments for previous years 2014 and 2015 and interest payments were made in 2016.”

“The Auditor-General fears that the oil marketers that received the subsidy payments may not have been ‘eligible to draw from the Petroleum Support Fund as the Petroleum Products Pricing and Regulatory Authority (PPPRA) failed to provide any document on the payments.’”

“N39,141,210,181.74 was also paid from the Federation Account in 2016 to different Oil Marketers in 26 transactions, being Payments of Interest and Foreign Exchange Differential on Subsidy but without any document.”

“The NNPC also made ‘zero profit’ and recorded ‘losses from its joint ventures in 2016. This is contrary to expectations that profits should be made from the joint ventures.’”

“The Ministry of Petroleum Resources, Abuja in 2016 paid N14,490,000.00 for the supply of 3 Nissan Almera Saloon vehicles 1.5 to the Ministry without proper documentation. The purchase of ‘the vehicles were made through direct procurement without competitive bidding by at least three companies, as required by Financial Regulations. There was no advertisement and bidding for this contract.’”

“Although ‘N12,442,500.00 was approved by the Bureau of Public Procurement for the vehicles, the Ministry made an overpayment of N2,047,500.00 to the car company.’”

No date has been fixed for the hearing of the suit.

SERAP sues Tinubu over ‘failure to probe missing $2.1bn, N3.1trn of subsidy payments’

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Yuletide: Travellers want fare discount for road trips

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Yuletide: Travellers want fare discount for road trips

  • Bemoan high fares

Passengers travelling to their country homes for the Christmas and new year day celebrations have urged the Federal Government to extend the free rail services announced early in the week to road transport routes across the country.

Some of the travellers who complained about the high fares called on the Federal Government to restore the 50 percent fare reduction on inter-state luxury bus routes granted to road passengers at this time last year.

The passengers who spoke at various terminals and loading stations of long distance road transport companies in Lagos, were reacting to the upsurge in fares to about N40,000 on luxury buses and N65,000 on mini buses going to the South-East.

Reports from some of the boarding stations revealed that upon hearing the announcement of free train ride, some passengers thronged the loading stations at various points in Lagos to benefit from the gesture, but were disappointed when they were informed that the offer did not cover road transport.

At Terminal 1 in Oshodi, Alafia, Jibowu, Mazamaza, and private stations in the Cele/Ejigbo axis, on Saturday, passengers bemoaned the high cost of travelling on both the big and small buses, disclosing that many people were not travelling because they couldn’t afford “the exorbitant fares the transport firms are collecting.”

Interestingly, a trip on board Toyota Sienna which used to attract slightly higher fare than on a typical mini bus, is the same at N40,500.

One of the passengers told our reporter one if the stations in Cele, “You press people should please tell (President Bola) Tinubu that poor masses cannot afford to go home this Christmas because there is no money in the country.

“(President) Tinubu should please repeat the 50 percent discount on long distance fares which some of us enjoyed last year to travel home.”

At the nearby Young Young Shall Grow station, a passenger who planned to travel to the east recalled how he took advantage of the 50 percent fare discount to travel from Abuja to Onitsha and back in 2023, and wondered why the Federal Government has not considered the re-introduction of the palliative this festive season.

According to the man who gave his name as Chinedu Uzoechina, his intention to travel to Anambra state and back with his wife and five children, has been stalled by the high transport fares being charged at the various terminals.

Uzoechina, who came to book for seats in advance, lamented, “I was hoping that the 50 percent fare discount that followed the increase in fuel pump price would be available this year, but that has not been the case this year. Forty thousand into seven is N280,000 for one-way luxury tickets.

“If you add the cost of coming back, it means I will spend nothing less than N560,000 on transportation alone for seven of us. Where will I get that kind of money? I have called my wife to inform her of the situation here (at the terminals in Cele).

“She is not happy that we are not travelling anymore, but what can I do?”

According to him, the only thing that can make his family travel again is if the Federal Government extends the free train ride offer to long distance road transport routes, like Lagos-east, or reduces the fares in collaboration with the operators.

Like Uzoechina, many other intending travellers were still hopeful that the government wiuld still intervene with a fare discount, even as they disclosed that they would either cancel the trips outrightly or reduce the number of tickets to be bought, if their hopes are dashed.It was learnt that the fares were slightly lower by about N2,000 at Terminal 1 where both big and mini buses have been loading for day and night trips at Oshodi.

Reacting to the passengers’ complaints about high fares at the terminal owned by the Lagos State Government, Damian Ezuma, the manager of Izu Chukwu Transport, blamed the situation on the rising cost of maintaining the buses as well as on the pump price of diesel, which he said, is as high as N2,000 a litre in some parts of the country.

“It is not our fault. The cost of maintenance is so high that it is only by the grace of God that some of transport companies still manage to keep their buses on the road these days. Do you know that one big bus tyre costs between N250,000 and N500,000, depending on the quality and brand?” Ezuma argued.

He confirmed that many intending travellers who heard about the free train services offer by the Federal Government have been coming to the terminal make enquiries on whether long distance-plying buses are part of the gesture and whether last season’s fare discount applies this year.

Many of them leave the terminal disappointed and deciding not to travel anymore, but opting instead to wait for a possible fare palliative from the government.

Also commenting on the reason for the high fares, a manager at Chisco Transport’s head office in Lagos explained that the unfavourable naira-dollar exchange rate has impacted on the prices of replacement parts and maintenance costs generally.

But a major factor is the fact that during the peak festive season, buses are usually full when leaving major cities like Lagos and Abuja, but are almost empty in their return journeys.

So some operators slightly adjust their fares upward to cover the losses incurred during return trips.

In 2023, the special fare discount by government through the luxury bus owners took effect on December 21, and lasted till the second week of January, 2024.

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Navy arrests 19 Nigerians attempting to reach Europe by hiding on ship

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Navy arrests 19 Nigerians attempting to reach Europe by hiding on ship

The Nigerian Navy Ship (NNS) BEECROFT has successfully apprehended 19 individuals attempting to stow away on Europe-bound vessels.

In a statement issued on Saturday in Lagos, the ship’s Information Officer, Lt. Hussaini Ibrahim, disclosed that 15 stowaways were intercepted on Dec. 19 aboard the European-bound Moto Tanker (MT) KRITI RUBY. Another four were caught on Dec. 21 aboard MT MCC YANBU.

“Preliminary investigation revealed that the stowaways boarded the vessels at night and concealed themselves in the rudder compartment while attempting to illegally migrate to Europe,” Ibrahim stated.

The Navy’s Quick Response Team (QRT), operating from ATLAS COVE and using the Falcon Eye Alignment under the Nigerian Navy Maritime Domain Awareness Facility, facilitated the interception of the 15 individuals near the Lagos fairway buoy.

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Ibrahim further explained that credible intelligence led to the interception of the additional four stowaways by Navy personnel deployed on escort duties aboard the vessel.

“The prompt response of the QRT saved the stowaways from exposure to life-threatening situations during the long voyage,” he added.

The first group of 15 individuals has been handed over to the Nigeria Immigration Service, Lagos State Port/Marine Command, Apapa, for further investigation and necessary action. The remaining four suspects will also be transferred in due course.

“The presence of stowaways poses serious security threats to maritime operations, including risks of smuggling, piracy, drug and human trafficking, among other maritime crimes,” Ibrahim noted.

He emphasized that under the leadership of Chief of Naval Staff Vice Adm. Emmanuel Ogalla, NNS BEECROFT will continue maintaining security along Lagos waterways and surrounding creeks to support safe maritime activities and economic growth.

 

Navy arrests 19 Nigerians attempting to reach Europe by hiding on ship

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Troops arrest four Ambazonian rebels in Taraba

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Nigerian military troops

Troops arrest four Ambazonian rebels in Taraba

Troops of the 6 Brigade Nigerian Army/Sector 3 of the Operation Whirl Stroke (OPWS), have arrested four suspected members of Ambazonian rebels in Taraba.

The News Agency of Nigeria (NAN) reports that Ambazonia is a rebel group operating in neighbouring Cameroon Republic.

A statement on Saturday in Jalingo by Capt. Olubodunde Oni, Acting Assistant Director Army Public Relations, said the suspects were arrested at a hotel in Takum town.

The statement said that acting on credible intelligence, the suspects were tracked and apprehended.

According to the statement, during initial interrogation, the suspects confessed to being part of the rebel group involved in arms proliferation in exchange for cocoa with their Nigerian collaborators.

It said that four mobile handsets were recovered from the suspects now in detention undergoing further investigation.

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The statement also said that in another operation following actionable intelligence, troops deployed at Natilde community in Bantaji District of Wukari Local Government Area intercepted a truck with registration number WKR 66 BB, transporting 19 pieces of stolen pipelines belonging to the Nigerian National Petroleum Corporation Limited (NNPCL).

It said that further collaborative efforts with the Nigeria Security and Civil Defence Corps (NSCDC) in Wukari Division led to the recovery of an additional 11 pipes, bringing the total to 30.

“The recovered items have been handed over to the NSCDC Wukari Division for further investigation and necessary action.

“The 6 Brigade Nigerian Army will remain resolute in its commitment to safeguarding lives and property while ensuring the security of critical national infrastructure.

“We urge members of the public to continue providing timely and credible information to security agencies to enhance our collective efforts in maintaining peace and security,” the statement added.

 

Troops arrest four Ambazonian rebels in Taraba

(NAN)

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