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CBN reveals $36.3bn spent on petroleum products’ importation in four years  

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6 years ago

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The House of Representatives on Monday rejected the submission of the Nigerian National Petroleum Corporation on the fresh bid to carry out a turnaround maintenance on the country’s four refineries.

A budget of $1.8bn is already set aside for the TAM.

This came as the Central Bank of Nigeria disclosed that between 2013 and 2017, the country spent $36.3bn on the importation of petroleum products.

The country’s total import bill for the period was $119.4bn.

The apex bank made the submission to an ad hoc committee of the House, which is investigating the planned TAM of the refineries.

The committee rejected the NNPC’s submission on the grounds that it was sketchy and did not answer the questions it sought answers to.

The committee, which is chaired by a member of the All Progressives Congress from Kaduna State, Mr. Garba Datti-Muhammad, started a public hearing on the controversial TAM in Abuja on Monday.

The committee demanded detailed information on the spending on the four refineries, particularly on all previous TAM and other repairs, as a basis to justify the fresh $1.8bn plan.

It gave the NNPC 24 hours to provide the information.

This came as the NNPC’s Chief Operating Officer, Refineries and Petrochemicals, Mr. Anibor Kragha, disputed the committee’s position that over $20bn had been spent on TAM since the inception of the refineries by successive governments.

He argued that if the combined cost of building all the refineries was less than $2bn, there was no way the series of TAM done over time would be up to $20bn.

“The figure you have is not true. It is strange how the committee arrived at the $20bn,” Kragha stated.

But, when he was asked to give the accurate figure spent on each of the refineries for maintenance, Kragha could not.

Rather, he informed the lawmakers that the NNPC’s new agenda was not to do a TAM but to carry out a comprehensive rehabilitation of the four refineries.

He claimed that the last time TAM was done on any of the plant was in 2004, adding that the level of delay would require a comprehensive rehabilitation of the plants and not TAM.

Kragha’s disclosure left the members confused, as they grilled him on the difference between TAM and a comprehensive rehabilitation.

Datti-Muhammad said, “The NNPC treats us with contempt and fails to respond to inquiries adequately.

“In our letter to you, we gave you a template on how to provide the information we asked for. But, you gave us a sketchy document, carefully avoiding the real information.”

Another member of the committee, who is the Chairman, House Committee on Public Accounts, Mr. Kingsley Chinda, asked the NNPC to provide the details requested by the committee, whatever name it was called.

“What is important here is the cost of the planned repairs. Is it TAM or comprehensive rehabilitation? What is the cost? Tell us,” Chinda added.

The committee later sent Kragha away, directing him to submit full details of the planned work on the refineries today (Tuesday).

In his submission to the committee on the economic implications of maintaining the refineries, the CBN’s Director of Research, Mr. Ganiyu Amao, told the lawmakers that the country continually depended on fuel importation to service domestic needs because the plants rarely work efficiently.

He stated that the country had to deplete its foreign reserves to pay TAM bills.

Amao stated, “Data from the CBN show that from 2013 to 2017, a total of foreign exchange committed to imports in the country stood at $119.409bn, while the total foreign exchange committed to imports in the oil sector stood at $36.371bn, representing 13.5 per cent of all imports made by the country.

“It greatly exerts serious pressure on our external reserves and depreciates the value of our local currency.”

However, lawmakers said the CBN’s submission still did not directly address the cost implications of the TAM done on the refineries over time, aside from acknowledging that it was a drain on the nation’s economy.

A member of the committee, Mr. Razak Atunwa, said, “The CBN, like the NNPC, has not told the committee anything useful in respect of TAM.

“What we are looking for are payments made in relation to all the TAM done over the years, or any other maintenance done to any of the refineries.”

Chinda made a similar observation, saying, “The CBN too can’t tell us that it does not know the total cost of this particular comprehensive rehabilitation they are talking about.

“The CBN is the banker to the NNPC; you keep the records of their withdrawals.”

The committee directed the CBN, just like it did to the NNPC, to furnish members with information on the TAM today (Tuesday).

The country’s refineries, which are located two in Port Harcourt and one each in Kaduna and Warri, have largely been unable to refine crude for domestic consumption and possible exportation of finished products.

.Punch

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Finance

AISA Has Refunded The Fees Paid By Yahaya Bello To EFCC

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22 hours ago

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April 27, 2024

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The Economic and Financial Crimes Commission (EFCC) says the American International School Abuja (AISA) has refunded the fees paid by the immediate past governor of Kogi state, Yahaya Bello, for his children attending the school.

In response to a letter addressed to the Lagos zonal commander of the EFCC, the school said $845,852 was paid in tuition “since the 7th of September 2021 to date”.

AISA said the sum to be refunded is $760,910 because it had deducted educational services already rendered.

“Please forward to us an official written request, with the authentic banking details of the EFCC, for the refund of the above-mentioned funds as previously indicated as part of your investigation into the alleged money laundering activities by the Bello family.

Since the 7th September 2021 to date, $845,852.84 (Eight Hundred and Forty-Five Thousand, Eight Hundred and Fifty Two US Dollars and eighty four cents) in tuition and other fees has been deposited into our Bank account.

We have calculated the net amount to be transferred and refunded to the State, after deducting the educational services rendered as $760,910.84. (Seven Hundred and Sixty Thousand, Nine Hundred and Ten US Dollars and Eighty Four cents).

No further additional fees are expected in respect of tuition as the students’ fees have now been settled until they graduate from ASIA.”

In a chat with The Cable, the spokesperson of the EFCC, Dele Oyewale, confirmed that the school has refunded the money.

‘’The money has been paid into public account,” Dele Oyewale was quoted as saying

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Finance

Godwin Emefiele Disobeyed Direction Of Law With Intent To Harm The Public, He Printed ₦684.5M Using ₦18.9B Says EFCC in fresh charge

Published

5 days ago

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April 23, 2024

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The Economic and Financial Crimes Commission has filed a fresh charge at the High Court of the Federal Capital Territory against the embattled former governor of the Central Bank of Nigeria, Godwin Emefiele.

EFCC in the charge accused Emefiele of approving the printing of N684,590,000 at the rate of N18.96 billion.

EFCC also alleged that Emefiele broke the law with intent to harm the public during his implementation of the naira swap policy of the administration of former President Muhammadu Buhari.

The anti-graft agency also accused Emefiele of unlawfully approving the withdrawal of N124.8 billion from the Consolidated Revenue Fund of the Federation.

EFCC’s top prosecutor, Rotimi Oyedepo, SAN revealed that Emefiele will be arraigned on a new four-count charge before Justice Hamza Muazu

Counts one to four of the charge, read,

“STATEMENT OF OFFENCE: Public Servant disobeying direction of law with intent to cause injury to the public contrary to and punishable under Section 123 of the Penal Code Law, Cap. 89 Laws of the Federation, 1990.

“PARTICULARS OF THE OFFENCE: That you GODWIN IFEANYI EMEFIELE between the 19th day of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the CBN Act, 2007, by approving the printing of N375,520,000.00 pieces of colour swapped N1, 000, at the total cost of N11,052, 068,062 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.”

This and three other charges were stated against him. They read;

“COUNT 2: “That you, GODWIN IFEANYI EMEFIELE, between the 19th of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the Central Bank of Nigeria Act, 2007, by approving the printing of 172,000,000 pieces of colour swapped N500 (Five Hundred Naira) Notes, at the total cost of N4, 471,066,040 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.

“COUNT 3: “That you GODWIN IFEANYI EMEFIELE between the 19th day of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the CBN Act, 2007, by approving the printing of 137,070,000 pieces of colour swapped N200 (Two Hundred Naira) Note, at the total cost of N3, 441, 005, 280 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.”

“COUNT 4: “That you, GODWIN IFEANYI EMEFIELE, on or about the 7th day of October 2020, in Abuja, within the jurisdiction of this Honorable Court, knowingly disobeyed the direction of Section 80 of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended), by approving the withdrawal of the total sum of N124, 860, 227, 865.16 from the Consolidated Revenue Fund of the Federation in a manner not prescribed by the National Assembly, which conduct of yours caused injury to the public and you thereby committed an offence.”

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Transport

Federal Government To Launch Out 2700 CNG Buses, Tricycles Ahead Of First anniversary Of Tinubu’s Administration

Published

6 days ago

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April 22, 2024

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The Presidency on Sunday said it was ready to launch about 2,700 CNG-powered buses and tricycles before May 29 when President Bola Tinubu turns one year in office.

“All is now ready for delivery of the first set of critical assets for deployment and launch of the CNG initiative ahead of the first anniversary of the Tinubu administration on May 29.”

It said the Federal Government is set to deliver 100 conversion workshops and 60 refuelling sites spread across 18 states before the end of 2024.

The Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, revealed this in a statement he signed Sunday titled ‘Presidential CNG initiative set for rollout.’

“From the end of May, Nigeria will take some baby steps to join such nations that already have large fleets of CNG vehicles.

The CNG tricycle
The CNG buses

“All is now ready for delivery of the first set of critical assets for deployment and launch of the CNG initiative ahead of the first anniversary of the Tinubu administration on May 29.

“About 2,500 of the tricycles will be ready before May 29, 2024…working towards delivering 200 units before the first anniversary of the Tinubu administration,” said the Presidency.

He also said that over 600 buses are targeted for production in the first phase which will be accomplished in 2024.

In October 2023, about five months after the removal of the petrol subsidy, President Tinubu launched the Presidential CNG Initiative to deliver cheaper, safer and more climate-friendly energy.

The CNG Initiative was designed to deliver compressed natural gas, especially for mass transit.

The Federal Government earmarked N100bn (part of the N500bn palliative budget) to purchase 5500 CNG vehicles (buses and tricycles), 100 Electric buses and over 20,000 CNG conversion kits, with plans to develop CNG refilling stations and electric charging stations nationwide.

The FG had said the initiative would ease the burden of the increased pump price on the masses.More information added that the creation of a new plant on the Lagos-Ibadan Expressway that will assemble the tricycles while Brilliant EV will assemble electric vehicles when it receives the Semi Knocked Down components.

The Presidency explained further, “The SKD parts manufactured by the Chinese company LUOJIA in partnership with its local partner to support the consortium of local suppliers of CNG tricycles are set for shipment to Nigeria and expected to arrive early in May.

It is expected that before 2027, There’ll be a considerable wave of these buses and tricycles in use.

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