We can’t identify true owners of oil blocs, assets - NEITI

ABUJA — The Nigerian Extractive Industries Transparency Initiative, NEITI, yesterday, lamented that the true owners of some oil blocs and other oil and gas assets in Nigeria cannot be identified from the records of the Corporate Affairs Commission, CAC.

It also accused owners of some of the assets of suppressing certain information and manipulating their records in the CAC, making it impossible to link them with the assets.

Acting Executive Secretary of NEITI, Mr. Ogbonnaya Orji, disclosed this in Abuja during a meeting with delegates from the global Extractive Industries Transparency Initiative, EITI, led by the incoming chair, Mr. Fredrik Reinfeldt, and civil society organizations.

According to Orji, the issue of beneficial ownership as contained in EITI’s standards, requires the identity of the true owners of oil blocs, adding that records of the companies in the CAC are shrouded in secrecy and do not provide correct information about the true owners.

He stated that this had been a challenge in implementing this specific requirement of EITI, while he appealed to EITI to understand the peculiarities in the Nigerian environment.

He said: “Beneficial ownership requires us to explain or provide information on the owners of certain oil blocs. But Nigeria is one kind of country; that is why I say nobody is going to suspend us; when you think we are going down, we tend to rise up and surpass expectations.

“One challenge is that we try to reflect this issue of beneficial ownership in our report, but the CAC is where you register legitimate companies doing business in Nigeria. If you go to CAC, the information that you find have no relationship with what you know. That is, those you know are the owners of this oil blocs. 

Reinfeldt lauds NEITI

In his remark, Reinfeldt, the incoming chair of EITI commended NEITI for its efforts at entrenching transparency in the extractive industry, adding that with some of its policy recommendations to the Federal Government, NEITI had been able to go further in its activities.

Speaking in the same vein, Deputy Head and Regional Director for Africa and Middle East of EITI, Mr. Eddie Rich, stated that the global body understood the challenges confronting NEITI, with regards to the reports.

We can’t identify true owners of oil blocs, assets - NEITI

Breaking News: Buhari sacks Okogu, appoints Gusau as DG Nigeria’s Budget Office

President Muhammadu Buhari on Thursday removed the Director General of the Budget Office of the Federation, Bright Okogu, from office.

The reason for his removal remains unclear at press time.

In his place, Aliyu Yahaya Gusau, has been appointed his successor. Until his appointment, Gusau was the Director, Fiscal Policy, Budget Monitoring and Evaluation.

His appointment takes effect from Tuesday, August 18, 2015, a statement by the Director of Press and Public Relations, Federal Ministry of Finance, Marshall Gundu, said.

Gusau holds a Bachelor of Science (BSc) Degree in Economics from Ahmadu Bello University Zaria.

However, the ex-DG until his appointment in December 2007, held several top positions, including Senior Economist, International Monetary Fund, IMF, in Washington DC; Senior Operations Officer at the Organisation of Petroleum Exporting Countries, OPEC, Fund and Market Analyst, OPEC Secretariat in Vienna, Austria.

He served as Special Adviser to the Minister of Finance (2004 to 2007) and also the pioneer Executive Secretary of Nigeria Extractive Industries Transparency Initiative (NEITI).

More details later…

 

Breaking News: Buhari sacks Okogu, appoints Gusau as DG Nigeria’s Budget Office

NNPC connives with Swiss firms to defraud Nigeria, says NEITI

ABUJA—THE Executive Secretary of the Nigerian Extractive Industries Transparency Initiative, NEITI, Mrs. Zainab Ahmed yesterday faulted claims by the Group Managing Director of Nigerian National Petroleum Corporation (NNPC) that the corporation did not connive with some Swiss oil dealers to short change the country to the tune of $6.8 Billion.

Minister of Petroleum, Alison-Madueke and NNPC GMD, Andrew Yakubu

Mrs Ahmed also alleged that the sum of $22.8 billion was not disclosed by NNPC in its audited financial statements through alternative funding arrangement with its joint venture partners.

The NEITI Boss based her allegation on the 2009 2011 audited report of her organization.

According to Ahmed, who testified before the House of Representatives joint committees on Petroleum Resources, Upstream, Petroleum Resources Downstream and Justice probing the allegation, the country lost N98.3 billion to NNPC in exchange rates compared to Central Bank of Nigeria, CBN official exchange rate between the period.

She also insisted at the hearing Bernes revelation on NNPC was true.

Her claims on Bernes were further substantiated by her organization’s Executive Secretary who said that “there is similarity in NEITI audit report and the Bernes Declaration report”, stressing that, “the report (Bernes Declaration report) has a lot of substance in it”.

Going further, Ahmed also faulted the allocation of 445, 000 barrels per day for local refineries through NNPC saying that, “the 445,000 barrels per day allocation should be reviewed to the actual refining capacity of the refineries”

Also testifying, the Managing Director of the Pipelines and Product Marketing Company (PPMC), Mr Haruna Momoh told the committee that Nigeria was not losing $8 billion annually through swap arrangement of crude oil between NNPC and some foreign oil companies.

Ruling on the issues, the Committee Chairman, Honourable Ajibola Muraina  adjourned the investigative hearing till March 25.

He also mandated the Minister of Petroleum Resources, Director, Department of Petroleum Resources, DPR, Chairman of Economic and Financial Crimes Commission, EFCC, Acting Governor of Central Bank of Nigeria, Executive Secretary of Petroleum Products Pricing Regulatory Agency, PPPRA among others to appear before the Committee on the date.

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NNPC connives with Swiss firms to defraud Nigeria, says NEITI