‘Nigeria Lost N523 Billion to Gas-flaring in Two Years’

Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said that the Federal Government would set up an independent tracking mechanism to ascertain the actual volume of gas being flared in the country.

‘Local content policy attracts N1.8tr investment’

The Federal Government has lost N523 billion to gas-flaring between 2015 and 2016, data from the Department of Petroleum Resources (DPR) and Nigerian National Petroleum Corporation (NNPC) has shown.

While DPR figures showed $850 million (N306 billion) loss to gas-flaring in 2015, NNPC latest report put losses to gas-flaring in 2016 at N217 billion. According to the NNPC, oil and gas firms flared a total of 244.84 billion standard cubic feet of natural gas in the whole of 2016.

Besides, the country has lost $14.298 billion between April 2008 and October 2016, which the International Oil Companies (IOCs) failed to pay as penalty for gas-flaring.

In a similar vein, the Nigerian Extractive Industries Transparency Initiative (NEITI), in its latest oil and gas audit report, has said that oil firms operating in the country have failed to abide by the regulation stipulating penalty of $3.5 for every 1,000scf of gas flared in the country.
Efforts to get the IOCs to state the reasons for non-payment of penalty were successful as none of them was willing to comment on the issue. But the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said that the Federal Government would set up an independent tracking mechanism to ascertain the actual volume of gas being flared in the country.

He said: “There is an urgency to drive the policy that will enable us get out of gas-flaring. We are putting up an independent tracking mechanism not relying on figures from the IOCs and the DPR to find out really what is the flare volume. My feeling is that there is a lot of management of those figures to suit the cap of the penalties being charged for gas-flaring.”

Also, Deputy Director and Head, Upstream, DPR, Pat Maseli, while speaking at the 10th yearly sub-Saharan Africa oil and gas conference in Houston Texas, said that the high level of gas-flaring had led to a loss of 3,500 megawatts of electricity and about $400 million carbon credit value.

She expressed worries over the scale of gas-flaring in the country. In another development, the Executive Secretary of Nigerian Content Development and Management Board, Simbi Wabote, has said that the content development initiative in the last six years attracted investment of over $5 billion (N1.8 trillion) into the country’s oil and gas sector.

Speaking at the Nigeria content investment forum organised by SweetcrudeReports, in conjunction with the Nigerian Content Development and Monitoring Board and Guardian Newspapers Limited at the sideline of the Offshore Technology Conference in Houston, Texas, Wabote said that the policy had enabled indigenous companies to build capacity of international standards.

He said that gas-flaring has affected the environment and human health, leading to economic loss. Wabote, who disclosed that complete fabrication and manufacturing of equipment for the modular refineries would be done in Nigeria, said that the 100 per cent local fabrication of modular refinery would be done to meet international standard.

The Guardian

NNPC’s $15.8 Billion Absent From Govt. Coffers- NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) says Nigerian National Petroleum Corporation (NNPC) is yet to remit 15.8 billion dollars collected from Nigeria Liquefied Natural Gas (LNG) to the Federation account, in spite of the report submitted to the Federal Government.

Mr Peter Ogbobine, Director Legal, NEITI, told the News Agency of Nigeria (NAN) in Abuja on Tuesday that the figure was the accumulation from 2000 to 2014.

He observed that although NEITI had presented a report to that effect to the Federal government, no action had been taken against NNPC.

“When LNG started operating, it paid dividend to the NNPC but the corporation was claiming that it was supposed to be the owner of the shares in LNG and not the Federal Government.

“When the LNG pays the money to the NNPC, it used some of it to run its operations.

“But we are saying no; that this money, once it is paid to them by LNG, it should go straight to the Federation Account and it has been accumulating over the years.

“We always bring it to the burner anywhere we go, that this money has to be remitted to the federation account,’’ Ogbobine said.

The director, however, called on the Federal Government to compel NNPC to remit the amount into the federation account for the benefit of all Nigerians.

NEITI is set to establish an Open Contracting Data Standard platform for procurement of goods and services, especially in the oil and gas sector.

The initiative also ensures transparency in procurement process through the whole value chain of extractive sector, down to exploration, mining, revenue generated and how it is spent.


Twelve-Man EFCC, NEITI Panel To Find NNPC’s Missing $12.9b

Investigators are battling to locate a $12.9 billion payment to the Nigerian National Petroleum Corporation (NNPC).

The Economic and Financial Crimes Commission (EFCC) and the Nigeria Extractive Industries Transparent Initiative (NEITI) have raised a 12-man panel to trace the cash, which was paid to the oil giant by the Nigerian Liquefied Natural Gas ( NLNG).

Some former ministers and past top officials of NNPC may be invited by the EFCC to shed light on the matter.

The $12.9b, which was remitted to NNPC between 2005 and 2013, was neither paid to the Federal Government nor put into the Federation Account.

A source, who spoke in confidence with our correspondent, said: “Preliminary investigation showed that NNPC officially confirmed the receipt of the $12.9billion. The oil corporation also admitted that it did not remit the funds.”

NEITI will provide records at its disposal.

There is a strong suspicion that the cash might have been used for miscellaneous expenses, including election financing, The Nation learnt.

The source also confirmed that the committee might look into non-remittance of $1.8billion proceeds of divestment from some oil blocks. Only $100million was paid into the Federation Account.

“We have a lot of issues to look into but the $12.9billion is certainly a priority. As at 2012, the NLNG cash paid to NNPC was $11.63billion but further investigation confirmed that it hit $12.9billion by 2013.” The source said, adding:

“This investigation requires multi-agency cooperation. There are areas we will involve the Department of Petroleum Resources (DPR) and the Federal Inland Revenue Service( FIRS).”

Some of the issues were contained in the NEITI 2015 Annual Activity Report, which was obtained last night.

The report said in part: “NEITI audit reports confirmed that the sum of $11.63billion has been received by NNPC but has not been remitted to the Federation Account as required by law.

“These findings have been communicated to the Federal Government.

“NNPC assigned its 55% equity in OMLS 4,26, 30,34, 38, 40,41, 42 between 2010 and 2012 under the SPDC /JV Agreement. The value of divestment was assessed by DPR as $1,847,785,233.97 but only the sum of

$100million was paid in 2014 and the $100million was not paid into the Federation Account but to NNPC/NPDC Special Account.

“The Petroleum Profit Tax (PPT) and Royalty validation carried out in the 2013 Audit Report revealed  total under assessments of the sum of $210.05million for PPT and $456.871million for royalty respectively due to inappropriate application of office variable in the determination of fiscal value for royalty calculation: Realizable Price( RP) or the Official Selling Price (OSP).”

Fresh N2tn Fraud Uncovered In NNPC

The Nigeria oil and gas as well as the solid minerals sectors Nigerian Extractive Industries Transparency Initiative NEITI audit report for 2013 has been published.

The Minister of Solid Minerals and Chairman of the NEITI Board, Kayode Fayemi, said the audit, which focused on all aspects of the extractive industries, showed that total revenue flows into the Federation Account from the oil and gas sector in 2013 was about $58.07 billion.

The figure represented about eight per cent decline when compared to the $62.9 billion realised in 2012.

Mr. Fayemi said the decline was attributed to the drop in oil and gas sales following divestment of federation equity in some oil mining leases, OMLs, crude oil losses as a result of destruction of production facilities, pipelines vandalism and crude oil theft.

Details of the report revealed that the Nigerian National Petroleum Corporation, NNPC and its sub-units during the year either lost or refused to remit a total of N2.23 trillion, consisting
$9.75 billion and N378.67 billion, to the federation account as earnings from various aspects its operations in 2013.

Group, Iwo Monarch Task New NEITI Boss On Sanity In Extractive Industry

he Oluwo of Iwo, Oba Abdul-Rasheed Olawale Akanbi‎ has‎ congratulated the‎ Iwo-born Communication Consultant, ex editor at ThisDay Newspaper and Publisher of Metropole‎, Mr. Waziri Adio,‎ over his appointment as the Executive Secretary of the Nigerian Extractive Industries Transparency Initiative (NEITI) by President Muhammadu Buhari.

This was just a group of professionals from the area, under the aegis of The Vision Group, tasked Adio on service delivery saying this could only stand the new appointee out in the midst of other appointees of the President.

The Vision Group said the extractive industry is crucial to the survival of Nigeria’s economy saying the problems of the industry has been a major factor of the problems facing the economy.

‎In a statement, the Monarch who described Adio as a media guru, praised him for parading very sound and intimidating professional‎ requirement which he said “positioned him as qualified for the job.”‎

Oluwo , in his congratulatory message to Adio which was signed by the Palace Spokesman, Prince Dauda Abimbola, said the new appointee had excelled in his chosen field.

“He parades a record ‎which shows commitment to excellence and scholarship. He is obviously one of those who can inspire our youths to greater things. The President has taken the right decision.

“On behalf of my family and the good people of Iwo land, I congratulate our own Waziri Adio‎ for the new appointment”. The stated

In the same vein, a group of professionals from Iwo, The Vision Group, advised Adio to keep up with the tradition of excellence he is known for in his career as a journalist and communicator.

The Vision Group, in its congratulatory message signed by its conveners, Dr. Rafiu Isamotu and Daud Okanlawon, said Nigeria’s extractive industry is the soul of the country’s economy, lamenting that the corruption that had bedeviled the industry over the years is mind blowing.

“This therefore shows that the appointment Adio has now is crucial to the survival of Nigeria and its economy. Corruption in that industry has brought to this level. NEITI, where Adio is to serve as Executive Secretary, the patriotic task of bringing sanity to that industry. We wish him well in this crucial national assignment.”

Waziri Adio Named Executive Secretary, As NEITI Gets New Board

President Muhammadu Buhari has approved the appointment of a new National Stakeholders Working Group (NSWG) also known as Governing Board for the Nigeria Extractive Industries Transparency Initiative (NEITI).

According to a statement issued by the Director (Press) in the Office of the Secretary to the Government of the Federation (OSGF), Bolaji Adebiyi, the new Governing Board will be inaugurated in due course.

The composition of the new Governing Board include the Honourable Minister of Solid Minerals Development – Chairman, Permanent Secretary, Federal Ministry of Finance – Member, Group Managing Director, Nigeria National Petroleum Corporation (NNPC) – Member.

Others are President, Miners Association of Nigeria – Member, Representative of the Civil Society Organizations (to be elected by the organizations) – Member, President, Nigeria Mining and Geosciences Society – Member, President, Nigeria Union of Petroleum and Natural Gas (NUPENG) – Member, Hannatu Musa Musawa (Journalist), Representative, North-West Geo-Political zone – Member.

Also in the board are – Mr. Lawan Gana Lantaiwa (Consultant), Representative, North-East Geo-Political Zone – Member, Mr. Bernard B. A. Ver (Accountant), Representative, North-Central Geo-Political Zone – Member, Mrs. Anne Adaeze Onyekwena (Representative, South-East Geo-Political Zone) – Member.

Others include – Mr. Emmanuel Chiejina (Lawyer), Representative, South-South Geo-Political Zone – Member, Mr. Gbenga Onayiga (Journalist), Representative, South-West Geo-Political Zone – Member, and Mr. Waziri Onibiyo Adio – Executive Secretary.

Another statement disclosed that President Buhari has also approved the appointment of Mr. Waziri Onibiyo Adio, as the Executive Secretary of NEITI.

Until his appointment, Mr. Adio was a Communication Consultant and Publisher of Metrolope Magazine.

Between 1995 and 2003, he held various editorial positions in Thisday Newspaper and was Special Adviser, Research and Strategy, Office of the Senate President, Federal Republic of Nigeria from August 2003 to October 2004.

He was appointed Communication Specialist by United Nations Development Programme (UNDP) in 2004, a position he held until 2007when he left to serve as Director of Communications, NEITI from May 2007 to June 2008.

Mr. Adio graduated with a BSc. (Mass Communication) from the University of Lagos in 1992, and obtained MSc. (Journalism) Degree from Columbia University, New York, United States in 1999.

He also holds a Masters Degree in Public Administration from the Kennedy School of Government, Harvard University, Massachusetts, US, 2009.

His appointment, the statement said, takes immediate effect.

The Nation