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EFCC Recovers N13bn Illegal Fuel Subsidy Payments

Published

1 year ago

January 4, 2023

Editor

The Economic and Financial Crimes Commission recovered about N13bn as proceeds of illegal payments made under the subsidy regime between 2017 and 2021

This was based on the National inherent risk assessment of money laundering and terrorist financing in the Nigerian extractive sector document obtained by our correspondent from the website of the Nigeria Financial Intelligence Unit.

The report read in part, “The Economic and Financial Crimes Commission, the agency responsible for the investigation and prosecution of fraudulent subsidies in the oil and gas in Nigeria recovered N12,998,963,178.29 as proceeds of illegal payment made under the subsidy regime between 2017 and 2021.”

A tabular breakdown showed that approximately N4.67bn was recovered in 2017, N4.29bn in 2018, N2.41bn in 2019, N416.51m in 2020 and N1.22bn in 2021.

It was further noted in the report that there were several opportunities for fraudulent activities in the oil and gas sector.

The report added, “Opportunities for fraudulent activities exist in the oil and gas sector from extraction to sales of refined products to consumers. The absence of reliable equipment to measure the volume of crude oil being extracted makes it impossible to estimate the volume of crude oil extracted and even stolen through oil theft and vandalism. Oil theft also occurs in the downstream sector, as petrol pumps are rigged at petrol stations or adulterated.

“Also, to be noted is the sale of petroleum products on the ‘black market’ giving rise to petroleum products being sold at exorbitant prices. Of concern is the emerging trend of filling station attendants acting as money agents, without appropriate customer due diligence carried out. It should be stated, however, that in most cases, the amount sold to an individual is usually not suspicious. However, if left unchecked, this practice could pose a threat to the country.”

It also noted that there had been diversion of petroleum products to non-designated retail outlets, which is a fraudulent practice that leverages on the fuel subsidy regime.

The report added, “Other fraudulent practices include the diversion of petroleum products to non-designated retail outlets to gain undue financial advantage. This practice may be intra- state, inter-state and across the borders of Nigeria to neighbouring countries.

“The Joint Border Exercise in August 2019 with operation code-named ‘Exercise Swift Response’ resulted in large number of seizures of trucks and other vehicles used to smuggle refined products outside the country. This exercise was coordinated by the Office of the National Security Adviser. This is also connected to the subsidy regime as the cost of PMS in Nigeria is significantly lower than in neighbouring countries.

“Another fraudulent practice is the smuggling of petroleum products. The NNPC recorded daily Premium Motor Spirit evacuation spikes in various depots across the country, against government projected volumes of daily consumption. These spikes led to the reactivation of Operation White II – an inter-agency task team comprising the NNPC, stakeholders and LEAs in May 2021.

” It was further reported that these volumes were being smuggled out to neighbouring countries like Benin Republic, Cameroun, Niger republic etc., with higher PMS prices compared to Nigeria. The OPW II team was mandated to curtail the smuggling, diversion and hoarding of PMS to ensure the Nation’s energy security. Intelligence-driven investigations are ongoing.”

In its biannual report known as Africa’s Pulse, which was released in April this year, the World Bank said that increasing fuel subsidy put the Nigerian economy at a high risk as subsidy payments could significantly impact public finance and pose debt sustainability concerns.

In 2021, the Nigerian National Petroleum Corporation said fuel subsidy gulped N1.43tn, although there was no record for under-recovery in January.

The National Assembly approved N4tn as fuel subsidy bill for 2022, which was an increase of 179.72 per cent over the previous year’s subsidy bill.

However, experts have warned the Federal Government that the N4tn fuel subsidy bill would adversely affect the country’s economy.

PUNCH.

News

Soludo Sacks 21 Anambra Transition Committee Chairmen

Published

17 mins ago

May 19, 2024

Editor

Anambra State Governor, Chukwuma Soludo, has sacked all transition committee chairmen across the 21 local government areas of the state.

This is contained in a letter titled ‘Expiration of tenure and handover to Heads of Local Government Administrations (HLGAs),’ dated May 17, 2024, and signed by the state Commissioner for Local Government, Chieftaincy and Community Affairs, Collins Nwabunwanne.

The order takes effect from Monday, May 20, 2024.

The letter read, “Following the expiration of your tenure as Transition Committee Chairman, you are hereby directed to handover the affairs of your Local Government Council to the Head of Local Government Administration (HLGA), in your respective Local Government Councils.

“This directive takes effect from Monday, 20th day of May, 2024. Thank you for your service to the state.

“All replies to be addressed to the Honourable Commissioner.”

The PUNCH reports that the last time LG elections were held in Anambra State was towards the end of former Governor Peter Obi-led administration in 2014.

Since then, the local governments have been run by caretaker committee chairmen.

It was 10 years in January 2024 since the elections were last held, after the administrations of another former governor, Willie Obiano, and incumbent, Soludo.

During a forum organised by the International Peace and Civic Responsibility Centre in collaboration with the African Centre for Leadership and Development in December 2023, stakeholders including monarchs, clerics and residents, urged Soludo to conduct elections in the 21 LGs in the state, adding that governance is suffering at the grassroots due to the non-elected officials.

Meanwhile, Soludo had, during the 2021 governorship campaign and even at his swearing-in as the state governor on March 17, 2022, assured all that he would conduct LG elections within six months in office.

News

Economic Hardship: Pastor Suspends Collection Of Offerings Church[VIDEO]

Published

2 hours ago

May 19, 2024

Editor

A pastor in Lagos state has caught the eyes of Nigerians after announcing the suspension of offering collection in his church.

In a trending video, the pastor could be seen telling his church members that henceforth, offerings will no longer be collected because of the situation of the country.

He stated that in these times that people spend more money to buy petrol and pay more for transportation, it would be unfair to collect offerings from them.

He said until the petrol price is reduced, his church will not collect money from its congregation. He called on all pastors to stop collecting offerings from their congregation.

Watch the video below:

News

Shettima Launches NEDC’s School Enrollment Drive Programme

Published

16 hours ago

May 18, 2024

Editor

Vice President Kashim Shettima has launched the Accelerated Senior Secondary School Education Programme (ASSEP) initiated by the North-East Development Commission (NEDC) in collaboration with the office of the VP to enhance child enrollment drive in schools within the North-East sub-region.

Speaking during the launching of the programme in Bauchi on Saturday, the VP said that consequences of the nation’s action and inaction were evident in all indices used to assess development.

He said while primary education provides a foundation, secondary education is a bridge, adding that the Northeast sub-region has been the victim of inability to enforce a uniform policy to drive school and the persistent cultural perversion to formal education in the country.

“We in the Northeast occupy a quantum of position in ranking of essential services. Education being a key sector of this country, this is especially pronounced in the post primary education, while the Northeast secondary school enrollment drive stands at 19 percent, far below the nation’s 39 percent,” he said.

Earlier, the Managing Director of NEDC, Mohammed Alkali, said that the primary education completion level of 85 per cent in the Northeast is among the best in Nigeria, but secondary school enrolment is a mere 15 per cent, the second worst nationally.

According to him, due to the challenges in the post-primary education segment, JAMB UTME applications and admissions into tertiary institutions in 2019 were the lowest for the Northeast compared to other regions.

He added that, nationally, the Northeast has the lowest number of teachers and the highest percentage 55 per cent of those available are without literacy skills.

The MD also revealed that the challenges in the post-primary education segment include weak quality indices and a wide demand-supply gap driven by economic and cultural factors.

“The Accelerated Senior Secondary Education Programme seeks to boost the post primary education rating across the North East region through improved enrolment into tertiary institutions.

“It’s also to improve skills development as well as the elevation of teacher quality. It would pay special focus on Science, Technology, Engineering, Mathematics and communication.

“These would foster creativity and critical thinking; motivates and inspires young people to generate new technologies and ideas to learn from inquiry-based tasks,” he said.

Alkali also explained that the programme would also raise awareness about after-school possibilities and the potential for diligent students to become successful and prominent contributors to the North East region and Nigeria at large.

He expressed gratitude to the Federal Government especially, the Vice President for the deep interest and commitment to human development in the North-East.