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Why NNPCL Didn’t Publish 2022 Audit Report — Kyari

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The Group Chief Executive Officer of Nigerian National Petroleum Corporation Limited, Mele Kyari, has explained why the company failed to release its Audited Financial Statement for 2022.

According to Kyari, the financial report was not released because the NNPCL did not have a substantive board of directors as of June 2023 when the report was ready.

A statement by the NNCL Chief Corporate Communications Officer, Olufemi Soneye, on Saturday evening, quoted Kyari as speaking during a meeting with the Deputy Executive Director, Extractive Industries Transparency Initiative, Mr Bady Baldé on Thursday.

Kyari had said that “NNPCL would have released its Audited Financial Statement for 2022 since June 2023 but could not do so because it had no substantive Board of Directors at that time, adding that the AFS will be published on the company’s website in the next few days”.

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The statement added that Kyari “expressed disappointment with the Nigeria Extractive Industries Transparency Initiative for going public with its report that NNPC Ltd failed to remit some monies into the Federation Account instead of seeking clarification on any perceived gap in its assessment.”

The NNPCL boss was said to have explained at the meeting that the company “was holding no public funds back and that what NEITI reported as non-remittance was what was due to the company as payment for taking the burden of fuel subsidy on behalf of the Federal Government”.

Soneye informed that the EITI boss scored the NNPCL high in its latest global assessment, adding the delegation’s visit was to communicate the group’s findings in its recent global assessment to the company. said NNPC Ltd. fared very well among companies in the same category.

Baldé had added that “only Equinox of Norway fared better than NNPC Ltd. in the assessment”.

He was said to have noted that there was still room for NNPCL to improve, stressing that compliance with global EITI standards will help boost the company’s credibility.

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The EITI boss had also urged NNPC Ltd. to remain engaged to play an active role in its Nigerian unit, the Nigeria Extractive Industries Transparency Initiative (NEITI).

On his part, the Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, called for the reconstitution of the NNPC/NEITI Joint Committee on Reconciliation, stressing that the committee could help in straightening out any grey areas.

The PUNCH had reported that NEITI in September 2023 said the NNPCL did not pay approximately N2.8 trillion in taxes to the Federal Government in 2022.

In its 2021 Oil and Gas Industry Report’, NEITI stated that of about N3.5tn ($8.25bn at N448/$1 exchange rate in 2022) owed the Nigerian Upstream Petroleum Regulatory Commission during the period under review, NNPCL was owing more than 80 percent (N2.8tn) of the outstanding tax collectible revenues.

According to the report, the unremitted sum consisted of about $279m earned by the Federation from trial marketing under First Exploration and Production Joint Venture; $8m from Oil Mining License 116 operated by a subsidiary of NNPCL, the Nigerian Petroleum Development Company; $871m unremitted domestic crude oil sales, and about $46m unremitted balance from the domestic gas proceeds account as of December 31, 2021.

 

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Residents Displaced As Rainstorms Wreck Havoc In Edo Community

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Lampese community in Akoko-Edo Local Government Area of Edo State has been ravaged by rainstorms.

The incident was said to have occurred Friday as a result of a heavy downpour which affected many houses including the electricity transformer.

An eyewitness account described the incident as very unfortunate following the level of devastation.

Residents of the community have therefore called on the state and local governments and all concerned authorities to come to their rescue with a view to proffering urgent solutions and resettling displaced residents.

READ ALSO: PHOTOS: Properties Worth Millions Destroyed As Fire Razes Shops In Benin

Reacting to the situation, the local government council chairman, Tajudeen Suleman, who said he was far away in Enugu State for an official engagement, disclosed that he has mobilised the council officials to the scene for an on-the-spot assessment immediately he got the news, promising to visit victims as soon as he returns today.

He also said he was in touch with the state deputy governor, Marvellous Omobayo and the State Emergency Management Agency (SEMA) on moves to fast track the process of resettling affected persons.

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Lawyer Drags NERC, AGF, Minister Of Power To Court Over Electricity Tariff Hike

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A Senior Advocate of Nigeria (SAN), Joe Agi, has taken legal action against the National Electricity Regulatory Commission (NERC) and Abuja Electricity Distribution (AEDC) for allegedly raising his electricity tariff by 230 per cent.

The case is currently being heard by Justice Inyang Ekwo of the Federal High Court in Abuja, where Agi is seeking the protection of his fundamental rights.

In his application, the senior lawyer asks the court to declare that the new tariffs and the hours of supply violate the Electricity Act of 2023 and Section 42 of the 1999 Constitution.

The applications list NERC, the Minister of Power, Adebayo Adelabu; the Attorney-General of the Federation (AGF), Lateef Fagbemi, and AEDC as the first to fourth respondents, respectively.

READ ALSO: Customer Drags NERC, AGF To Court Over Electricity Tariff Hike, Classification

In the attached affidavit submitted with the lawsuit, the attorney stated that he purchased 682kwh of utility from the AEDC on both March 23 and April 3, for a total of N50,000.

Furthermore, Agi declared that on April 6, he made another N50,000 utility purchase, but this time the value of the purchase was reduced to 206.7kwh.

He expressed his concern regarding this unexpected change but later discovered that the NERC and AEDC had implemented a system known as “bands” in the country. Under this system, NERC issued the April 2024 Supplementary Order to the Multi-Year Tariff Order 2024.

“That from the tariffs shared, the 1st and 4th respondents (NERC and AEDC) increased my tariffs by 230%, whereas others had theirs increased by 236%,177% and some others 0% in Nigeria.

READ ALSO: Electricity Workers Fault Tariff Hike, Threaten Strike

“The tariffs are discriminatory and the hours of supply are discriminatory between consumers and consumer categories and should be cancelled,” the SAN prayed the court.

Agi criticized the statement made by NERC’s chairman, Musiliu Oseni, on April 1st, where he stated that “only 15% of the electricity consumers in the country who consume 40% of the nation’s electricity are the ones affected.”

In Agi’s view, this directive creates a distinction between the 15% and the remaining 85% of consumers in Nigeria, which he considers discriminatory.

He argued that the use of US Dollars to determine tariffs in Nigeria is unnecessary and goes against public policy.

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Consequently, the applicant requested “a declaration that the NERC Supplementary Order to the MYTO 2024 is discriminatory, unconstitutional, and a clear violation of the applicant’s right to freedom from discrimination as guaranteed under Section 116 (2) (e) of the Electricity Act, 2023, and Section 42 of the 1999 Constitution (As Amended).”

He also stated that it violates the African Charter on Human and Peoples Right (Ratification and Enforcement) Act Cap A9 Vol. 1LEN 2004.

Agi also requested the court to declare that the use of the United States of American dollar exchange rate to determine the cost of tariffs in Nigeria is illegal, unconstitutional, and against public policy. Additionally, he sought an order to invalidate the NERC Supplementary Order to the MYTO 2024, as it is discriminatory and a clear violation of his right to freedom from discrimination as protected by the law.

However, no hearing date has been scheduled for this matter.

Recall that on April 3, NERC increased the electricity tariff for customers in the Band A category, who receive 20 hours of power supply daily, from N66/kWh to N225/kWh.

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JUST IN: Gas Explosion Rocks Abeokuta

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Panic gripped residents of Ita-Oshin area of Abeokuta, Ogun State capital, when a gas tanker explosion left a trail of devastation, claiming four lives and about six vehicles were burnt.

It gathered that the explosion, occurred following an accident involving the gas tanker, when it was trying to manoeuvre along the road railings.

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It was further gathered that emergency response teams, including personnel from the Federal Road Safety Corps, Ogun State Fire Service swiftly mobilized to the scene to evacuate the remains of the victims and contain the inferno.

Among the vehicles consumed by the inferno were taxis, a private car, and a truck, with the impact extending to nearby shops and houses.

While security and safety officials present at the scene are yet to provide a comprehensive statement regarding the incident, eyewitnesses, who spoke under the condition of anonymity, said some casualties had already been rushed to the hospital by the response teams.

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