FG Assures on Readiness for Centenary Celebration

FG Assures on Readiness for Centenary Celebration

• Cttee tours stadium, conference centre

Barely one week to the kick off of the grand finale of Nigeria’s centenary celebration, the Federal Government has expressed its preparedness for a successful anniversary. The Chairman of the Presidential Committee on Organization of the Nigerian Centenary Grand Finale and the Minister of FCT, Senator Bala Mohammed who gave the assurance on Friday expressed satisfaction with the level of readiness of the two key venues for the centenary celebration, the International Conference Centre and the Abuja National Stadium.

He stated this during an inspection of facilities at the two main venues of the activities lined up for the centenary grand finale. The FCT Minister was accompanied during the tour by the Minister of Culture and Tourism, Chief Edem Duke, Minister of Sports, Malam Bolaji Abdullahi and the Minister of State for Works, Alhaji Bashir Yuguda.

The Centenary Committee Chairman emphasized: “From what I have seen so far, I can say so far, so good. We are on course….Concerning the National Stadium here, I can say it is over 85% ready; for the International Conference Centre, we can even hold the event there today.”

At the International Conference Centre during the inspection, workers of construction giants, Julius Berger Nigeria Plc were putting finishing touches on diverse facilities such as the African Hall, main auditorium, the executive halls, the restaurant, the conveniences and the business roundtable halls. At the National Stadium, the Minister and his team inspected the giant concert stage construction at the main bowl, the mini state box, the VIP section, the popular side and the clinic.

The Centenary Committee Chairman and his entourage were conducted round the International Conference by officials of Federal Capital Development Authority (FCDA) and Julius Berger.

At the National Stadium, they were shown round by the Minister of Sports, Mallam Bolaji Abdullahi who is also a member of the Organizing Committee of the Centenary Grand Finale Committee and officials of Message Wise Nigeria Limited the company constructing the concert stage at the stadium.

Highlights of the major activities for centenary grand finale celebration include the International Conference on Human Security, Peace and Development – Agenda for the 21^st Century Africa slated for Thursday 27 February, 2014 at the International Conference Centre, Abuja at 10 am. The Centenary Anniversary Live Concert – A Multimedia Show and Fireworks will take place also on Thursday February 27 at 6 pm in the evening.

On Friday, 28 February, there would be a Special Centenary Jumma’at Thanksgiving Prayer at the National Mosque, Abuja. The same day in the evening, there would be the Centenary Anniversary Presentations and Awards Dinner at the International Conference Centre, Abuja.

The Centenary City Ground Breaking Ceremony is scheduled for Saturday March 1at the Centenary City off the Nnamdi Azikiwe Airport Road, Abuja. A special Church slated for Sunday 2 March at the National Christian Centre would cap the centenary celebrations.

NOSIKE OGBUENYI

SA Media to the FCT Minister

21^st February, 2014.  

THE MINISTER OF FINANCE AND COORDINATING MINISTER OF THE ECONOMY DR.NGOZI OKONJO IWEALA DENIES REPORT FLYING ROUND THAT SHE HAS RESIGNED.

THE MINISTER OF FINANCE AND COORDINATING MINISTER OF THE ECONOMY DR.NGOZI OKONJO IWEALA DENIES REPORT FLYING ROUND THAT SHE HAS RESIGNED.

THE STATEMENT FROM HER OFFICE READ:

Re: Purported Resignation of the Minister of Finance/Coordinating Minister for the Economy

It has come to our attention that a story is circulating online about the purported resignation of the Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala.

For the avoidance of doubt, this story is not true.

The Finance Minister is still in place and assures Nigerians that all will be done to ensure that macro-economic stability is maintained through tight fiscal and Monetary policies.

Signed.

Paul Nwabuikwu
Special Adviser to the Minister of Finance and Coordinating Minister for the Economy

THE SUSPENSION OF THE GOVERNOR OF CENTRAL BANK, MALLAM SANUSI LAMIDO SANUSI.

SENATE MINORITY LEADER, SENATOR GEORGE AKUME CONDEMNS THE SUSPENSION OF THE GOVERNOR OF CENTRAL BANK, MALLAM SANUSI LAMIDO SANUSI.

The nation has yet again been confronted with another act by the President, which is inimical to good governance and the rule of law with the illegal suspension from office of the Governor of Central Bank, Mallam Sanusi Lamido Sanusi.

While one may not question the prerogative of Mr. President to hire and fire, such actions must be guided by strict observance to laid down processes and in the overriding national interest.

The suspension of the CBN Governor has raised more questions than it addresses the issue of good governance, accountability and the fight against corruption, especially, coming at a time when there are unresolved issues in the petroleum industry, which is known locally and internationally as a cesspool of corruption.

The whistle blower who should know it all is being illegally and unconstitutionally suspended to safeguard and protect the perpetrators of corruption in the petroleum industry.

Now that the President has acted illegally and unconstitutionally, he should also now act legally and constitutionally by firing the Petroleum Minister and the top management of the NNPC to restore confidence in the sector.

The President has serially violated the Nigerian Constitution, which he swore to uphold. The consequences of these are grievous. The suspension of the CBN Governor by the President is not only an abuse of power but also a gross violation of the Central Bank Act, 2007. Under the provisions of Section 11(2)(f) of the CBN Act, the President can only remove the CBN Governor where his request is supported by two-thirds majority of the Senate of the Federal Republic of Nigeria.

We condemn in very strong terms this very unfortunate, unjustified, unwarranted and illegal removal of the Governor of Central Bank, Mallam Sanusi Lamido Sanusi under the guise of suspension. The President must stop the persistent violation of Nigerian Laws and impunity in governance. We call for the immediate reinstatement of the Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi.

Meanwhile, our lawyers are scrutinizing breaches and flagrant violations of our laws by Mr. President for appropriate and necessary action.  

Sen. George Akume

Senate Minority Leader

Newly commissioned FCT SURE-P/AICL taxis on display at the Eagle Square, Abuja

Alleged Unremitted Oil Revenue: Attorney General Clears NNPC

Alleged Unremitted Oil Revenue: Attorney General Clears NNPC

·       Says NNPC can Defray Cost of Production from Crude Proceeds

·       Endorses Transfer of Operatorship of Oil Blocks to NPDC

 

The Attorney General of the Federation and Minister of Justice, Mohammed Bello Adoke, has said that the Nigerian National Petroleum Corporation, NNPC, can legitimately transfer its participating interest in oil mining leases (OML) to its wholly owned subsidiary, the Nigerian Petroleum Development Company,NPDC.

The AGF provided the legal position during the investigative hearing of the Senate Committee on Finance on the alleged unremitted $49.8bn oil revenue in respect of the status of $6bn NPDC gross revenue which the suspended CBN Governor, Mallam Sanusi Lamido Sanusi, had alleged should have been remitted to the Federation Account by NNPC.

Mr. Adoke informed that it is instructive to note that by virtue of paragraph 14 to 16 of the First Schedule of the Petroleum Act, CAP.P.10 Laws of the Federation of Nigeria, LFN, 2004 (NNPC Act) and Regulation 4 of the Petroleum (Drilling and Productions) Regulations 1969 as amended, a holder of an OML or Oil Prospecting License (OPL) can assign its interest provided the consent of the Minister of Petroleum Resources is obtained.

“Furthermore, section 6(1)(C) of the NNPC Act empowers the NNPC to establish and maintain subsidiaries for the discharge of its functions. The NPDC was thus incorporated as a limited liability upstream company of NNPC to carry out its upstream operations as envisaged by the law,” Adoke submitted.

He added that it is pertinent to note that the transfer of the participating interests in the OMLs in question, relates to a joint venture arrangement between NNPC, on the one hand and Shell Petroleum Development Company of Nigeria ltd, Nigerian Agip Oil Company Ltd (AGIP) and Total E & P (Nigeria) Limited on the other hand.

On whether all revenues derived by the NNPC from upstream operations including those under which OMLs in the JV operations are payable to the Federation Account, Adoke posited that NNPC is generally under an obligation to remit its revenue from the upstream petroleum operations into the federation account.

According to him, this is however dependent on the definition of ‘revenue’ within the meaning and intendment of section 162 (10) (c) of the constitution of the Constitution of the Federal Republic of Nigeria 1999 (Constitution) saying that the NNPC can by virtue of section 7(4) of the NNPC Act defray all expenses incurred in the course of its business in the upstream operations.

The AGF stated that the NNPC is required to pay into the Federation Account the ‘net revenue’ as opposed to the ‘gross revenue’.

“Iam therefore of the respectful view that only the net revenue from the upstream petroleum operations of the NPDC should be paid into the federation account by the NNPC. This is more so as the federating units do not contribute to the funding of upstream petroleum operations of the NNPC and its subsidiary,” he affirmed.

The AGF and Minister of Justice requested for more time to give his legal opinion on whether due process was followed by the NPDC in engaging Strategic Partners for the funding and operation of the oil blocks assigned to it by NNPC.

It would be recalled that upon the conclusion of the work of the Inter-Agency Committee which reconciled the outstanding $10.8bn last week and cleared NNPC of the allegation of withholding money meant for the Federation Account, the Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala requested the Senate Committee on Finance to seek for legal interpretation of the status of NPDC and whether all its revenues are payable to the Federation Account  as well the legality of the Strategic Partnership it entered into with some private companies. 

 

Dr. Omar Farouk Ibrahim

Acting Group General Manager

Group Public Affairs Division,

NNPC, Abuja.

20^th February, 2014.  

FOREIGN PASSENGERS HAIL THE HONESTY OF AVIATION SECURITY STAFF

FOREIGN PASSENGERS HAIL THE HONESTY OF AVIATION SECURITY STAFF

 

A passenger, Mr. Thomas Joseph McGorry, a Briton, has praised the honesty of Aviation Security personnel at the Murtala Muhammed Airport, Ikeja for handing over his lost purse to him, with all the money intact, following his arrival from the UK. Mr. Thomas said he never believed such positive development could happen in Nigeria therefore, full of praise for the Federal Airports Authority of Nigeria.

 

The joy of McGorry, was visible when he was informed of the recovery of his missing purse at the airport, on February 13, 2014. A Good Samaritan found the purse at the arrival hall near the bureau de change office and alerted AVSEC officials after the arrival passengers had departed the airport.

 

The purse contained various foreign currencies including £820, €175 and N250. It also included his international passport. The office of the Criminal Investigation Bureau (CIB) of AVSEC contacted McGorry, who was more than relieved to be given his missing purse.

 

This is the second time, in less than six months, that FAAN has returned missing items at the airport, including money, to its rightful owners.

 

 

Yakubu Dati

GM, Corporate Communications

HAWKERS CLEARED AT MMA ACCESS PLAZA

HAWKERS CLEARED AT MMA ACCESS PLAZA

In a renewed effort to ensure a safe and secure environment at the Murtala Muhammed Airport, Ikeja, the Aviation Security Directorate of the Federal Airports Authority of Nigeria (FAAN) has stepped up its crack down on hawkers in and around the airport.

One of such crackdowns took place at the MMA Access Plaza on Tuesday, February 18^th, 2014 when hawkers were arrested and handed over to the Police for prosecution.

Until the resent raid, the Access Plaza was regularly besieged by hawkers, resulting in constant traffic gridlock on the airport access road, especially at periods!

Following the operation, sanity has returned to the area as vehicular movement at the Access Plaza is now seamless.

We also wish to inform the general public that the increasing incidence of traffic congestion on the MMA internal road has been traced to the ever increasing volume of vehicular traffic on the access road, which provides an easier access from Ikeja to other areas of the state including; Mafoluku, Ajao Estate, Isolo, Mile II, Apapa and Badagry.

The Authority appeals to users of the access road to minimise the time spent at the newly automated access plaza by paying the charges promptly, apart from ensuring that they have the exact amount for that charges, to ensure free flow of traffic on the internal road at all times.

Yakubu Dati

GM (Corporate Communications)

FCT Permanent Secretary, Engr. John Chukwu (fnse) (2^ndfrom right) exchanging pleasantries with the Managing Director of Aso Broadcasting Corporation, Alhaji Abbas Hassan, while Mrs. Nana Buhari and the Deputy Director, ( Finance), Ishaq Ismaila watch with keen, during the monthly meeting with FCTA and FCDA Directors at the FCDA Board Room, Abuja…Wednesday. 

Nigeria female U17 defeats Nasarawa Amazons in Abuja Friendly

.......Departs to Faro for Training tour, Friday

With less than a month to the female U-17 World cup in Costa Rica, Nigeria U17 women has intensified preparations with a 2-0 victory over the country’s women league champions, Nasarawa United, in a friendly match in Abuja.

Goals from Uche Kanu and Onyebuchi Goodness in separate halves, handed the Faro-bound girls the victory in the tie, played at the FIFA Goal Project Centre on Wednesday.

The coach Bala Nkiyu led wards through Uche Kanu grabbed the lead in the 7^th minute and later saw several attempts on goal off target in the first half with Aminat, Chiwnedu both recording a miss.

However, Nasarawa Amazons failed to find a breakthrough for an equalizer as the resilient Nigeria flamingoes sealed up its defense line.  Unfortunately, the HamzaAbdullahi led women lost hope when Onyebuchi Goodness fired home to make it 2-0 for the Flamingoes.

Interestingly, the 2-0 victory over the Amazons became the second victory for the Flamingoes after an earlier 2-1 victory in Lafia during their Federation tour.

Meanwhile, a 34-man delegation of the Nigeria cadet women team made up 25 players and 9 officials are expected to leave the country for a training tour in Faro, Portugal on Friday.

Jennifer Ifeoma Okoye,
Media Officer,

Flamingoes -Nigeria U17 women

NFF condoles Aisha Falode

NFF condoles Aisha Falode

The Nigeria Football Federation on Wednesday condoled Member of theCAF Media Committee, Aisha Falode, on the death of her son, TobaFalode.
News of the unfortunate incident made the rounds on Monday, and it waslearnt that the young man died at the weekend.
The screen diva, a former Chairperson of the NFF Media and PublicityCommittee, has been a telling figure in Nigeria sports journalism andsports administration for decades, through her rare passion,diligence, keen attention to details and sense of duty.
NFF President Aminu Maigari was dumbstruck when he learnt of the sadnews. "This is a tragedy. It is very, very sad to hear of the death ofsuch a young, charming and ambitious young man.
"We feel very much for Aisha Falode and deeply mourn with her at thisperiod. It must be so devastating to lose such a promising son at thatyoung age."

Ademola OlajireAssistant Director (Communications)Nigeria Football Federation

Maigari to host Hayatou in Cairo

Maigari to host Hayatou in Cairo

President of Nigeria Football Federation, Alhaji Aminu Maigari, will
be a special guest of CAF President, Alhaji (Dr.) Issa Hayatou in
Cairo, Egypt on Friday.

The CAF President has invited Maigari and presidents of four other
federations whose teams would be representing Africa at this summer's
World Cup finals to a special meeting in the Egyptian capital.

It is expected that the former 400m champion of Cameroon would seek to
sound out Maigari and the FA Presidents of Algeria, Cameroon, Ghana
and Cote d'Ivoire on their teams' preparations for the biggest
showpiece in football, happening in Brazil between 12th June - 13th
July. Africa's football supremo is also likely to impress it on the FA
chiefs on the need to adequately prepare their teams to make the
continent proud in South America.

No African team has made it to the semi finals of the FIFA World Cup
in the past 19 editions, with only eight countries having lifted the
trophy - Brazil, Italy, Germany, Uruguay, Argentina, England, France
and Spain.

Only Cameroon, in Italy in 1990, and Senegal, in Korea/Japan in 2002,
have flown Africa's flag into the last eight of the FIFA World Cup,
with Cameroon narrowly beaten by England in 1990 and Senegal
eliminated by Turkey in Japan 12 years later.

Nigeria, champions of Africa, play two-time winners Argentina,
Bosnia-Hercegovina and Iran in Group F, with Algeria up against
Belgium, Russia and Korea Republic in Group H and Ghana to face
Germany, Portugal and USA in Group G.

Cameroon tackle Brazil, Croatia and Mexico in Group A and Cote
d'Ivoire are up against Colombia, Greece and Japan in Group C.

President Jonathan to storm Brazil for World Cup

PRESS RELEASE

President Jonathan to storm Brazil for World Cup

Nigeria's leader, President Goodluck Ebele Jonathan, GCFR will be in
Brazil this summer to support the Super Eagles in their quest to lift
the prestigeous FIFA World Cup trophy, as 'Nigeria's Official Number
One Supporter.'

Speaking at a colourful ceremony inside the Presidential Villa, Abuja
on Wednesday morning, where he was decorated as Grand Patron of
Nigeria Football Supporters Club, President Jonathan also hailed the
efforts of the National Sports Commission, Nigeria Football Federation
and Nigeria Football Supporters Club in the numerous successes that
Nigeria National Teams have achieved in the recent past.

Dedicating the honour to all Members of the Federal Executive Council
and Nigerians of goodwill at home and in diaspora, the President also
pledged that his administration will continue to give maximum support
and assistance to all Nigerian sportsmen and women to bring glory to
the country.

It will be recalled that since President Jonathan came into office,
Nigeria Football Federation has brought immense honour and glory to
Nigeria through the National Teams, with a total of 10 trophies in the
cabinet. These trophies include the 2013 FIFA U-17 World Cup, 2013
Africa Cup of Nations, 2011 African Youth Championship, 2010 African
Women Championship,  trophies from prestigeous international
friendlies against Argentina, Catalonia and South Africa, and three
editions of COPA Lagos International Beach Soccer competition. The
Super Eagles have also qualified for this year's FIFA World Cup
finals, with the Falconets and Flamingoes through to take part in this
year's FIFA U-20 Women's World Cup and FIFA U-17 Women's World Cup
respectively.

"The Year 2014 is a very important one for our nation, as we have the
FIFA World Cup and the Commonwealth Games ahead of us. The Federal
Government will not relent in giving support to all our athletes in
all sports to excel. I am indeed honoured to be officially recognised
as Nigeria's Number One Supporter. I have always been a keen supporter
of all our National Teams."

Speaking at the ceremony, President -General of the Nigeria Football
Supporters Club, Dr. Rafiu Oladipo hailed the President's keen
interest and personal motivation of all the National Teams, which has
resulted in tremendous successes over the years..

President of Nigeria Football Federation, Alhaji Aminu Maigari joined
Vice President Namadi Sambo, Minister of Sports, Alhaji Bolaji
Abdullahi, Director General of NSC, Hon. Gbenga Elegbeleye and Dr.
Oladipo in decorating President Jonathan with the ceremonial dress,
medallions, muffler, Staff of Office and trophy.


Ademola Olajire
Assistant Director (Communications)
Nigeria Football Federation

AT Social Media Week,Terra Kulture,Omojuwa ,Supergirl and the guy are speaking in code.Want everyone to meet them... http://fb.me/1diX8WiRj 

Press Release

POWER RESTORED AFTER  OUTAGE AT MMIA

Power supply has been restored at the international terminal of the Murtala Muhammed Airport, Ikeja after a brief outage that affected some sections of the terminal today, February 18, 2014.

The power outage which mostly affected the 'D' and ‘E’ Wing of the terminal was caused by the on-going construction which affected an underground armoured cable fault, leading to the outage.

This did not adversely affect operations at the terminal but some services were temporarily shut down to enable our engineers effect repairs to the damaged cables.

FAAN regrets any inconvenience the power outage caused airline passengers and operators at the terminal.

 

Yakubu Dati

GM Corporate Communications

Press Release

Why Kerosene is sold Beyond Official Price-NNPC

·       Implores Consumers to Switch to Cooking Gas

·       Reassures adequate Supply of PMS in Lagos, Environs

The Management of the Nigerian National Petroleum Corporation, NNPC, has said that diversion of kerosene to neighbouring countries, industrial use, aviation fuel, sharp practices by middlemen and pipeline vandalism are reasons why kerosene is not readily available for domestic consumption.

Group Managing Director of the Corporation Engr. Andrew Yakubu made this disclosure Tuesday during the two-day investigative public hearing on supply, distribution, expenditure and subsidy on kerosene.

Engr. Yakubu maintained that due to a number of issues ranging from incessant pipeline vandalism and diversion of the product to road construction, the product which is meant for the masses is not readily available.

“There are quite a number of competing demands for kerosene and until these are addressed by other relevant agencies, the issue of kerosene not being readily available for domestic use will continue to reoccur every now and then. The way out is for this committee to collaborate with the NNPC to encourage the sale of liquefied petroleum gas otherwise known as cooking gas,” Engr. Yakubu quipped.

He informed that already the NNPC has stepped up the supply of LPG from 65,000 metric tonnes in 2011 to 250,000 metric tonnes in 2013 stressing that the target is to grow the consumption of the product to 500,000 metric tonnes by the end of 2014.

The NNPC helmsman stated that the increase in the consumption of cooking gas will go a long way to reduce the dependence on kerosene which will in turn help in the redistribution of kerosene to those who may still want to consume it.

Responding to a question on whether kerosene subsidy is still in place, the NNPC GMD said that was exactly what he met when he assumed office in June 2012 adding that kerosene subsidy is funded by unrealizable revenue flow. “The NNPC takes crude at international price and sells it at the domestic market at regulated price of N50 per liter,” he stated.

 Answering a question on what the NNPC is doing to stop kerosene diversion, the NNPC helmsman said that the Corporation does not have the power to police marketers and sanction them adding that there are statutory bodies with the responsibility.   

Commenting on the legality of kerosene subsidy, the NNPC Company Secretary, Anthony Madichie citing Petroleum Act section 6 subsection 1 said only the Minister of Petroleum Resources has the authority to fix petroleum product prices stressing that if a presidential directive is given and not gazetted, such directive will not be effective.

In his submission to the committee, the Managing Director of the Pipelines and Products Marketing Company, PPMC, a subsidiary of the NNPC, Prince Haruna Momoh informed that kerosene is sourced for the Nigerian market through importation and domestic refining adding that Dual Purpose Kerosene is sold to coastal marketers, Major Marketers Association of Nigeria, MOMAN, Depot and Petroleum Products Marketers Association, DAPPMA and NNPC Retail.

“I can confirm to this committee the statistics for the supply of DPK is as follows. In 2010, NNPC supplied 2,515,582.44 metric tonnes of DPK, in 2011, NNPC 1,922,263.56 metric tonnes, in 2012, NNPC supplied 2,622,843.20 metric tonnes and in 2013, NNPC supplied 2,671,747.97 metric tonnes making a total of 9,732,437.17 metric tonnes,” Prince Momoh revealed.

In his keynote address, the Speaker of the House of Representatives, Hon. Aminu Tambuwal represented by the Deputy Speaker, Hon. Emeka Ihedioha said the investigative hearing is aimed at finding a lasting solution to kerosene scarcity in the country.

Presiding over the investigative hearing, the Chairman of the House of Representatives Committee on Downstream, Hon. Dakuku Peterside said the hearing was not to witch hunt any agency but to work out modalities to ensure that kerosene is bought at the official pump price by the masses

 

 

 

 

Dr. Omar Farouk Ibrahim

Acting Group General Manager

Group Public Affairs Division,

NNPC, Abuja.

Breaking News-Petroleum Minister Says No Gazette on Withdrawal of Kerosene Subsidy

Press Release

·         Petroleum Minister Says No Gazette on Withdrawal of Kerosene Subsidy

·         Seeks Court Interpretation on Legality of NNPC deductions on DPK

It was an anticlimax Thursday on the controversy over the alleged unremitted $49.8 billion, as the Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi, finally accepted the certified claims of NNPC presented by the Inter-Agency Committee on reconciliation that certified the claims of the Corporation.

Speaking during the public hearing between the Senate Committee on Finance and the Inter-Agency Committee in Abuja, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, said the Ministry was on the same page with the Inter-Agency submission.

“The work of reconciling the alleged missing $10.8bn has been done by the Petroleum Products Pricing Regulatory Agency and the Department of Petroleum Resources and of course in tandem with the NNPC and all these agencies have cleared the Corporation on the issues at stake,” Mrs. Alison-Madueke informed.

She said that there was a presidential directive that kerosene subsidy should be withdrawn but that the directive was not gazetted, stressing that the inter-ministerial committee then comprising of the Minister of Finance and Minister of Petroleum Resources in 2009 directed a stay of execution of the kerosene subsidy withdrawal.

The Minister posited that should kerosene subsidy be withdrawn today, the price of kerosene will triple and that would cause pains on the Nigerian masses. “Kerosene today is imported at N150 per liter and sold at N50 per liter and this has been on for years. It will be very simple for NNPC to withdraw subsidy and if this is done, it will cause pains on the masses”.

She called for the legal interpretations of the NNPC Act in respect of the first line charge of the Corporation to decide the legality of its current status in respect of kerosene subsidy deductions and the status of the Nigerian Petroleum Development Company, NPDC the upstream subsidiary company of the NNPC.

Presenting NNPC’s position to the Committee, the Group Managing Director of NNPC, Engr. Andrew Yakubu, stated that the Corporation presented convincing proofs to the inter-agency committee on crude oil and products losses, national strategic reserve, pipeline maintenance and management and the cost incurred on petroleum products subsidy. It was the incontrovertible nature of the proofs that informed the decision of the Committee to accept NNPC’s submission, he said.

“In spite of the nonpayment of subsidy, NNPC continued to sustain petroleum products supply, even when other marketers refused to participate. This development led to the accumulation of $8.76 billion as unpaid subsidy due to NNPC for petroleum product supplied during the period under review.  This amount is comprised of US$5.25 billion for Premium Motor Spirit (petrol) and US$3.51billion for Dual Purpose Kerosene (kerosene)  and has been reconciled and signed-off by statutory agencies (PPPRA, DPR and NNPC) as outlined in Appendix III, Schedule 3”, Yakubu stated.

 

Engr. Yakubu said the Corporation has incurred huge costs in ensuring adequate and steady supply of petroleum products in Nigeria resulting from the purchase of crude oil at international prices while selling petroleum products at regulated rates, non-payment of subsidy claims for petroleum products supplied to Nigerian domestic market and crude oil and petroleum products losses due to syndicated theft and vandalism.

He called for the payment of outstanding subsidy due to NNPC, formal approval for the reimbursement of cost of holding strategic petroleum product stock, reimbursement of crude oil and petroleum products losses and sustenance of the recent momentum to end pipeline vandalism, crude oil and products theft.

In his submission, the Chairman of the Senate Committee on Finance, Senator Ahmed Makarfi said the PPPRA has certified the subsidy claims of NNPC, noting that the Minister of Finance who had agreed with the certification had suggested that a professional audit firm be engaged to do a forensic audit of the claims. This, according to the Minister is ``because of the extraordinary times in which we are in.’’ A forensic audit will give more weight to the findings of the reconciliation committee.

On the legality of deductions at source and the status of NPDC Senator Makarfi informed that the Attorney General of the Federation has been invited to give an opinion at the next sitting of the Committee, scheduled for Thursday next week.

 

 

 

Dr. Omar Farouk Ibrahim

Acting Group General Manager

Group Public Affairs Division,

NNPC, Abuja.

13^th February, 2014.