The House of Representatives has resolved to investigate the loss of over $21billion revenues to International Oil Companies (IOC) operating in the country.
The decision followed a motion moved by Sunday Kaltung (PDP, Kaduna) during plenary on Thursday.
While leading the debate on the motion, Mr. Kaltung explained that, “the Deep Offshore and Inland Basin Production Sharing Contracts Act of 1993 (PSC) was enacted in response to the problems posed by the joint venture arrangement as well as the desire of the federal Government to open up the sector to more foreign participation and further benefit the Nigerian economy.
He said that “the said PSC governs the understanding between the Nigerian National Petroleum Corporation (NNPC) and all new participants in the new inland deep and ultra-deep water acreages by which the contractor bears all costs of exploration and production without much cost being reimbursable if no find is made.”
He noted that “the PSC also provided for the recovery of the cost of exploration of crude oil in the event of commercial find, with provisions made for tax oil, cost oil, and profit oil following which the balance, after these (3) deductions are made, is shared between the NNPC and the contractor in an agreed proportion,” adding that the “PSC was amended by deep Offshore and Inland Basin Production Sharing Contracts (Amendment) act of 1999.”
The lawmaker however said that a revelation by the Minister of State for Petroleum Resources, Dr. Ibe Kachiku, on the 13th December, 2017, while briefing State House correspondents after the Federal Executive Council meeting that “Nigeria lost about $21 billion (N7.6trillion) to International Oil Company (IOCs) operating in the country due to non-implementation of the PSC” is disheartening.
He also said that during the same briefing, Kachiku also stated that from 1993 up till date cumulatively, Nigeria had lost the colossal sum of $21Billion because of the Federal Government’s failure to act in the national interest.
According to him, in 2013, there was a notice to oil companies that government would take steps to correct the anomaly but eventually nothing was done, adding that “these act of negligence, omission, incompetency, if not outright collusion and conspiracy with a view, possibly to corruption have been perpetrated over such a long period of time when Nigeria has had well paid legal and technical experts in place.
“Anguished that this is a sad reminder of how the wealth of Nigeria, Africa’s largest oil producer, derived from her God given natural resources ends up in foreign lands while her economy and lot of her citizens continue to dwindle as evidence by, amongst other things, her economic recession and pervasive and acute poverty in the country.
“These reckless incidents that have resulted in massive depletion of both our nation’s resources and the revenue accruing from them have gone on for far too long and that there is a need for this National Assembly to come to Nigeria’s rescue in interest of the common man and take adequate measures to bring them to a halt.”
The House therefore resolved to investigate the operation of the PSC as between the NNPC and the IOCs towards determining the reasons for the loss of the aforesaid $21billion; and determine why the appropriate steps were not taken in the first place or promptly taken over such an inordinately long period to remedy losses and the possibility of recovering the revenue lost.
The House also resolved to require the Minister of Petroleum Resources to provide details of financial transactions between the NNPC and the IOCs during the period when the losses were incurred; and called for a review the PSC of the joint operating agreement and other relevant agreements with a view to regularizing all the anomalies that led to the aforesaid loss of revenue.
Tambuwal, Mark, others collected N17b bribe to pass 2015 Budget – Okonjo-Iweala
Former Minister of Finance, Dr. Ngozi Okonjo-Iwella, has alleged that former President of the Senate, David Mark; former Speaker of the House of Representatives and now Governor of Sokoto State, Alhaji Aminu Tambuwal; and other members of National Assembly collected a N17 billion bribe before the 2015 Budget was passed.
Okonjo-Iweala, who served under former President Olusegun Obasanjo, made the shocking revelation known in her new book: “Fighting Corruption is Dangerous: The Story Behind the Headlines.”
Okonjo-Iwela said this on page 80 of the book as Twitted and pictured by the spokesman of the President Muhammadu Buhari Campaign Organisation, Festus Keyamo (SAN).
The former Minister said the bribe money, which was added into the budget was N20 billion initially, but was reduced to N17 billion.
She added that the N17 billion was padded into budget as election expenses.
She said: “By the time we presented budget on December 16, 2014, the oil prices has further fallen down to $58 per barrel. We were prepared and knew we had to trigger the additional expenditure and revenue measure in 2015 to make the budget work. This would be tough, given that we had entered election year.
“Indeed, legislators initially refused to accept pay cuts to their regular N150 billion budget, despite dwindling revenues. But, eventually agreed to 13 percent cut against backdrop of Ministers accepting voluntary 50 percent to their basic salaries.
“In a tough session with the National Assembly ad-hoc committee on budget (made up chairs of Finance committee and Appropriation Committee of both chambers and other leaders of National Assembly), an additional N20 billion was reintroduced as election expenses for the National Assembly members.
“We insisted that the amount should be dropped because it nullified the 13 percent cut to their statutory budget, but managed N20 billion figure by only N3 billion to N17. This become the price to have 2015 budget passed.”
But it was not clear as at the time of filling this report whether all members of the National Assembly benefited from the N17 billion budget padding.
Birnin-Gwari: Again 42 passengers kidnapped
In a daring and consistent operation along Birnin-Gwari-Kaduna Highway, armed bandits have kidnapped 42 passengers en-route to Kano within 24 hours.
A leader of National Union of Road Transport Workers in Birnin-Gwari, who pleaded anonymity, told PRNigeria that the incidents occurred tetween evening of Tuesday and Wednesday morning.
The union leader said: “At least 42 passengers have been kidnapped along Birnin-Gwari and Kaduna Highway between yesterday evening and this morning.
“This Wednesday morning around 8am, the armed bandit intercepted three vehicles conveying 21 people from Birnin-Gwari, Kuriga and Kagara and abducted them into the bush.
“Meanwhile, yesterday evening around 5.15pm, another 21 people inside commercial VW golf (saloon) cars were also kidnapped.
“Some of the drivers of the vehicles who escaped on sighting the kidnappers narrated their ordeal to us.
“Majority of the passengers, including women and children, were travelling to Kano when the kidnappings occurred.”
PRNigeria has gathered that relevant security agencies have been informed of the development and action is being taking to rescue the victims and apprehend the kidnappers.
Recall that PRNigeria had reported activities of armed bandits operating along Birnin-Gwari-Kaduna Highway, where they recently kidnapped 107 passengers, which prompted the Chief of Army Staff, Lieutenant General Tukur Yusuf Buratai, to charge troops to end the wanton killings and destruction of property in the axis in three weeks.
Concerned with the incessant kidnapping and killing, the National Union of Road Transport Workers in the area cautioned its members from plying the route pending deployment of troop and other security agencies.
An official of the NURTW told PRNigeria that most of the kidnapped victims were passengers travelling between the Northern and Southern parts of the country.
Lagos to subsidize staff housing for civil servants, says HoS
The Lagos State Head of Service, Folashade Adesoye has said that steps are currently being taken to ensure that the Rent-To-Own Scheme of the State Government eases the accommodation problem confronting employees in the Civil Service.
Adesoye disclosed this on Tuesday at the ongoing annual Ministerial Press Briefing to mark the third anniversary of Governor Akinwunmi Ambode’s administration held at Bagauda Kaltho Press Centre in Alausa
She stated that efforts are in top gear to review the Staff Quarters Manual to further strengthen the basis of the relationship between the Government and occupiers of the Staff Quarters.
Adesoye gave assurance that her office will not rest on its oars until affordable housing units are provided for members of staff, just as she expressed optimism that the Rent-To-Own Scheme would create a veritable platform for Public Servants to benefit maximally from this mortgage scheme at a subsidised rate.
Speaking further, the HOS stated that the budgetary provision for Housing Loan for civil servants in the State has increased from N50 Million N100, saying that the development lays credence to the State government’s commitment to staff welfare.
“Within the period under review, 280 Public Servants from various MDAs benefitted from a total sum of N95,033,564.14 as housing loan,” she said.
The HOS stated that the government has a total housing stock of 1,121 Housing units spread across the State as staff quarters, stating that the units have served as an avenue through which the government ameliorates accommodation issues for its workforce.
She disclosed that the State government through the Office of Transformation, Creativity and Innovation, OTCI, has completed the design of an advocacy programme aimed at enlightening Public Servants on the need for a change from a “Fixed” to a “Growth” Mindset, stressing that governance in Lagos State has been characterised by promises fulfilled, anchored through a vibrant and purposeful Public Service.
“I take pride in stating that our Public Servants are competent professionals who are committed to the tenets of Service delivery. We boast of loyal, dedicated, and effective Officials across the broad spectrum of our employees from the Management Staff to the Cleaners, Drivers and Office Attendants. Let me, therefore, use this forum to celebrate the diligent Public Servants of Lagos State for their readiness to embrace change as we consolidate on our efforts to becoming a Smart City.” Adesoye stated.