2. January 10, 2014: Press Briefing in Abuja of Mr Bernad Otti, the Group Executive Director, Finance and Accounts Directorate of NNPC,, explaining missing $10.8 billion
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1. February 3, 2014: CBN Governor Sanusi appears before Senate Committe on Unremitted Oil Revenue
Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi appeared Feb 4 2014 at the Senate's Investigative Public Hearing on Unremitted Oil Revenue.
Illegalities in NNPC, by CBN Governor Sanusi
Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi appeared Feb 4 2014 at the Senate's Investigative Public Hearing on Unremitted Oil Revenue. He gave details of his grouse about the accounting system of the Nigerian National Petroleum Corporation (NNPC).
I Am pleased to stand before you and present a summary of my latest submission on this subject. The submission itself is about 20 pages long with 30 Appendices, providing documentary backing for all material statements. The background to this session remains my letter to the President in which I indicated that there was a difference between the value of crude lifted by NNPC between January 2012 and July 2013 and the amount of foreign exchange repatriated into the Federation Account. This difference was placed at almost $50 billion and I respectfully advised the President to order an investigation into a number of areas I suspected were responsible for leakages in oil revenue.
My letter was, sadly, leaked and published in a highly politically-charged atmosphere. The Central Bank was practically accused of involvement in politics and in December it was clear to me that no tempered and positive discussion would take place. In order to calm nerves and avert major crisis I agreed to a joint press conference with Finance Ministry, the Petroleum Ministry and also to present a common front at the National Assembly.
Since December, however, there has been an orchestrated campaign aimed at undermining our credibility and misleading Nigerians into believing that all monies due to the Federation Account have been either remitted or accounted for. I am, therefore, compelled to present to this committee detailed evidence that NNPC has in violation of the law and constitution been diverting money from the Federation Account, and involving itself in activities that warrant full investigation for more serious violations of the law.
I have established, in my presentation, the following:
1. That NNPC, in paying what it calls kerosene subsidy, is confessing to a number of serious infractions. First, I have shown, based on NBS data, that kerosene is not a subsidised product, and, therefore, the so-called subsidy is rent generated for the benefit of those in the kerosene business. Second, I have produced evidence that President Yar'Adua had issued a presidential directive eliminating this subsidy payment as from July, 2009. Third, these huge losses inflicted on the Federation Account have not been appropriated.
The burden of proof on NNPC is to show where they obtained authorisation to purchase kerosene at N150/litre from Federation Funds and sell at about N40/litre, knowing fully well that this product sells in the market at N170-N220/litre. At what point was the presidential directive revered? NPA records would suggest that NNPC imports about 4-6 vessels of kerosene a month. Industry sources place the value of each vessel at $30m and the amount of "subsidy" per vessel at $20m. This means, at an average of 5 vessels a month, the Federation Account loses $100m every month to this racket.
2. I have also shown, in my submission, that claims by NNPC of spending the money on PMS subsidy are not credible. I have submitted proof that as from April, 2012, NNPC has consistently rendered returns to FAC indicating that it made no deduction for subsidy. This is after rendering returns on amount deducted monthly for 20 consecutive months to March, 2012. NNPC had previously explained that it had stopped deductions from 2011 and that the N180b taken in Q1:2012 related to fuel imports for Q4:2011. As from 2012, the directive was for NNPC to submit its papers to PPPRA, the relevant government agency set up and given the responsibility for verifying and paying subsidy claims. Having officially reported that it was not making deduction for fuel in 2012 and 2013, it is surprising that the GMD and GED of NNPC would now claim that $8.49b was used to pay for subsidy.
I am convinced that a major source of revenue leakage from the system is NNPC's unverified claims for subsidy and unilateral deduction from the Federation Account. If we take the PPPRA template, subsidy/litre of PMS is about 1,136litre/MT, the subsidy is around N1.5b. This means that for every $1b claimed by NNPC as subsidy deduction, the corporation is claiming to have imported at least 100 vessels of PMS. In addition to the N180b reported in Q1:2011, NNPC had deducted N845 billion in 2011. According to the Farouk Lawan report, NNPC deduction for PMS subsidy in 2011 alone amounted to N1.7 trillion, if we add claims on Excess crude naira account. Any serious investigation into these matters will require an audit of NNPC's database which it is statutorily required to keep based on subsidy guidelines. Only verification of the legitimacy of these claims can form the basis for a true reconciliation.
3. Based on NNPC's disclosure to the effect that it shipped $6b worth of crude oil on behalf of NPDC, I have argued here that at least a part of this amount is due to the Federation Account. This part relates to oil produced from blocks operated under "Strategic Alliance Agreement". I have given you three legal opinions that unanimously argue that these agreements merely serve to transfer revenue due to the Federation to private hands. I have also shown how, based on these arguments, NNPC has effectively given tax relief and concessions to its business partners.
Also customs duties and levies are treated as "development costs" and recouped from "cost oil" and "cost gas". These companies recover OPEX and COPEX from production, take 20-70 per cent of the profit and pay no tax, on JVs in which the Federation was previously entitled to 55 per cent of the entire profit oil when Shell was the operator. I have given details of these transactions and my concerns in the paper.
4. Although the above 3 areas exhaust the areas covered in NNPC's explanations, I have also taken time to submit my analysis of the crude-for-refined-product swap contracts entered into by PPMC. This is because a significant part of the domestic crude taken by NNPC is in these transactions. I have indicated where i believe we are losing money in these transactions.
Reconciliation
Having thus explained my major opinions on NNPC's explanations, I will come to the reconciliation.
NNPC itself has submitted that it lifted $67b worth of Crude between January 2012 and July 2013. Of this, we have been able to agree that the following amounts have been remitted to the Federation Account:
1. $14 billion as equity crude
2. $15 billion as payment to FIRS by IOCs. They paid in crude which was lifted by NNPC on behalf of FIRS. There was nothing in our records linking the two transactions.
3. $2 billion Royalty payment to DPR by IOCs under similar arrangements as in (2) above.
4. $16 billion out of the 428b taken as Domestic Crude Paid in Naira, not dollar.
The following items are outstanding and need to be proven by NNPC:
1. $12 billion out of domestic crude sales yet to be remitted. NNPC has already disclosed N180 billion as subsidy payment in Q1.2012. If PPPRA confirms this number, we will adjust the balance accordingly. As for the balance of $10.8 billion, NNPC has publicly disclosed that 80 per cent applied to petrol and kerosene subsidy. We have already explained why this explanation is untenable and NNPC needs to provide the relevant proofs.
2. $6 billion shipped on behalf of NNPC. We have explained why some this belongs to the Federation and the need to investigate and audit the SAAS to recover amounts unconstitutionally diverted.
3. $2 billion "third-party" financing" we have not been given any documents explaining or proving this along with other claims around pipeline repairs, maintenance, strategic reserves etc.
There was no appropriation for these expenses and NNPC also needs to substantiate them.
In summary, it is established that of the $67 billion crude shipped by NNPC between January 2012 and July 2013, $47 billion was remitted to the Federation Account. It is now up to NNPC, given all the issues raised, to produce the proof that the $20billion unremitted either did not belong to the Federation or was legally and constitutionally spent. There is no dispute that $20 billion out of $67 billion has not been paid into any account with the CBN.
Our recommendation remains that this matter requires thorough independent investigation, as simple explanation will not suffice.
I concluded my submission with recommendation for the future, to protect the economy from these unsustainable losses.
I would like to make the following recommendations going forward:
Recommendations
NNPC should stop collecting 440,000bbl daily as "Domestic Crude". The amount of crude should be reduced to the refining capacity of its refineries based on a signed refining contract that clearly states what products are to be delivered for each barrel. Sale proceeds net of recognised processing costs are to go to the Federation Account;
All Crude for Product Swaps should be terminated and crude should be exported and sold at market price.
Where NNPC needs to generate cash flow to fund PMS imports, it can "borrow" crude, on the approval of the Finance Minister, for 90 – 120 days. This crude is to be valued at the ruling market price. NNPC may sell the crude, import PMS and sell through its outlets. It should claim subsidy from PPPRA like every other marketer and present all required documents. Thereafter, NNPC should pay back the full value of crude lifted to the Federation Account and retain the profit. Where NNPC delays payment, the amount outstanding should attract interest at commercial rates until payment.
All the SAAs entered into by NPDC should be investigated for constitutionality. The production numbers, Opex and Capex, and profit shares should be audited. The tax arrangements entered into with these parties should be reviewed and all revenues due to the Federation collected. If possible the SAAs should be terminated. Certainly, NNPC should be prohibited from entering into any SAAs in the future.
NNPC to account for subsidies claimed in 2010-13 by producing documentary proof of legitimacy.
As for what action needs to be taken on what has happened in the past, we express no opinion. The decision on what to do in this case rests entirely with the Government. My task is limited to raising an alarm over what I think is a development that is harmful to the economy, and establishing that the alarm was neither spurious nor baseless. I still insist that an investigation is needed to establish the extent of the losses and the nature of offence committed.
I believe I have placed enough information before this committee to make the point. The amount in 19 months may be $12 billion or $19 billion or $21 billion, we do not know at this point but if we extend the period the amount will increase anyway, since this has been going on for a long time. The first priority is to stop it. It is unsustainable, and it will ultimately, if not stopped, bring the entire economy to its knees.
2. January 10, 2014: Press Briefing in Abuja of Mr Bernad Otti, the Group Executive Director, Finance and Accounts Directorate of NNPC,, explaining missing $10.8 billion
January 10, 2014
Mr Bernad Otti, the Group Executive Director, Finance and Accounts Directorate of NNPC, at a press briefing in Abuja
NNPC: Accounting for the $10.8bn (finally)
| S/N | ITEM | AMOUNT (Billion Dollars) |
| 1 | Subsidy claim | 8.49 |
| 2 | Pipeline management and repair cost | 1.22 |
| 3 | Product/crude oil loses | 0.72 |
| 4 | Cost of holding the strategic stock reserves | 0.37 |
|
| TOTAL | 10.8 |
PUNCH
Missing funds: NNPC claims spending $8.49bn on subsidy
JANUARY 10, 2014 BY OKECHUKWU NNODIM, ABUJA
The controversy surrounding the allegedly missing $10.8bn meant to be remitted to the Federation Account by the Nigerian National Petroleum Corporation took another turn on Friday as the NNPC claimed that it spent $8.49bn of the sum on petroleum products subsidy.
Prior to NNPC's claim, the Federal Ministry of Finance is known to be the agency of government saddled with the task of offsetting subsidy claims on petroleum products to oil marketers.
But the NNPC, during a press conference at its headquarters in Abuja, argued that all relevant government agencies were aware that the corporation had been subsiding petroleum products without getting back these funds from the Federal Government.
The Group Executive Director, Finance and Accounts Directorate, Mr. Bernard Otti, stated that the sum in question was the expenditure incurred as part of the statutory responsibilities which the NNPC executes on behalf of the Federal Government.
He said, "The $10.8bn is made up of the following: subsidy claim, $8.49bn; pipeline management and repair cost, $1.22bn; product/crude oil loses, $0.72bn; and cost of holding the strategic stock reserves, $0.37bn."
The Federal Government, in September last year, said it would spend a total of N971bn to subsidise petroleum product consumption in 2013. It, however, did not state whether subsidy payment to the NNPC was part of the N971bn.
The Governor, Central Bank of Nigeria had late last year alleged that the corporation failed to remit a whopping $49.8bn to the Federation Account between January 2012 and July 2013.
Of this sum, $30bn had been reconciled by the government agencies involved, while $10.8bn was still outstanding.
While buttressing Otti's statement, the Director of Transformation and Corporate Services, NNPC, Dr. Timothy Okon, explained that there was a process by which revenues accrued into the Federation Account and argued that the corporation was mindful of this.
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PUNCH
$10.8bn crude oil fund not missing – NNPC
JANUARY 10, 2014 BY NAN
The Nigerian National Petroleum Corporation on Friday gave details of the contentious $10.8 billion crude oil fund, saying the money was not missing.
The amount is part of the $49.8 billion alleged to have been unremitted to the Federation Account by the NNPC.
Mr Bernad Otti, the Group Executive Director, Finance and Accounts Directorate of NNPC, at a press briefing in Abuja declared that "the $10.8 billion, which is currently the subject of ongoing inter-agency reconciliation exercise is not missing."
"The sum in question has been expenditures incurred as part of statutory responsibilities, which the NNPC, as the national oil company, executes on behalf of the Federal Government," he said.
He explained that issues surrounding the alleged $49.8 billion said not to have been remitted, were clarified at a joint press conference by NNPC, the Central Bank of Nigeria, Ministry of Finance and Ministry of Petroleum Resources in December, 2013.
"There was no where it was admitted by any of the parties in the course of the press conference that the sum of $10.8 billion out of the alleged unremitted $49.8 billion is missing," he said.
He said that $30 billion out of the alleged unremitted oil revenue had been reconciled by all the parties involved, adding that the yet-to-be-reconciled $10.8 billion could be located in the expenses on some of the corporation's responsibilities.
Otti said that the responsibilities were those NNPC usually carried out on behalf of the Federal Government with respect to domestic crude oil utilisation.
According to him, the expenditure and responsibilities included the sum of $8.49 billion of unpaid subsidies on kerosene and Premium Motor Spirit and $1.22 billion for pipeline management and repair.
"Others are $0.37 billion, the cost of holding strategic stock reserve for petroleum products and $0.07 billion, which accounts for products and crude oil loses," he added.
He explained that the associated costs of stolen and spilled products and crude oil, repairs and maintenance, and downtime of the refineries constituted a significant part of the yet-to-be-reconciled figure.
"The corporation is left to bear these responsibilities on behalf of the Federal Government. The cost incurred in this mandate is part of the $10.8 billion yet-to-be-reconciled outstanding figure," he stated.
The director said that all the parties involved in the reconciliation process were aware of the "facts", adding that the figures were being thoroughly scrutinised.
"It is therefore incorrect for anyone to continue to misinform the public that the sum of $10.8 billion of oil revenue is missing," he said.
He claimed that the services being rendered by NNPC were critical to the development of the national economy "which no corporation will perform without being paid up-front by the government."
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3. December 18, 2013: Statement from Revenue Reconciliation Meeting among the Central Bank of Nigeria, Nigerian National Petroleum Corporation, the Department of Petroleum Resources, the Federal Inland Revenue Service, the Office of the Accountant General of the Federation, the Budget Office of the Federation, and the Federal Ministries of Finance and Petroleum Resources.
December 18, 2013
Revenue Reconciliation Meeting among the Central Bank of Nigeria, Nigerian National Petroleum Corporation, the Department of Petroleum Resources, the Federal Inland Revenue Service, the Office of the Accountant General of the Federation, the Budget Office of the Federation, and the Federal Ministries of Finance and Petroleum Resources.
Summary of Findings
1. The Central Bank of Nigeria (CBN) recently reported that about USD49.8 billion could not be accounted for from crude oil exports by the NNPC over the period January 2012 to July 2013. The CBN raised this concern in the context of low accretion to the foreign exchange reserves despite sustained high oil prices. This note is the outcome of a reconciliation exercise among the aforementioned stakeholders, held at the Ministry of Finance, to clarify the issues raised by the CBN.
2. According to the CBN, based on data from pre-shipment inspection agents, over the period January 2012 to July 2013, a total of 594.02 million barrels of crude oil were lifted by the NNPC, amounting to about USD65.3 billion. However, the amount remitted into the Federation Account at the CBN amounted to only USD15.53 billion. This prompted the CBN to raise the issue of an observed gap in expected revenues.
3. A revenue reconciliation meeting was therefore convened among the CBN, NNPC, the Federal Ministry of Finance and other stakeholders to clarify the observed sources of discrepancy. At this meeting, the NNPC noted that the actual proceeds from crude oil exports over the period amounted to USD67.12 billion, and was thus about USD1.79 billion higher than the revenues reported by the CBN (possibly due to timing differences and NPDC liftings which were not included in the CBN report).
4. According to the NNPC's records, the total revenues of USD67.12 billion, was comprised of revenues which directly accrued to NNPC (for the Federation Account) of USD14 billion; and additional revenues lifted by NNPC on behalf of other parties as follows: for FIRS (USD15 billion), for DPR (USD2 billion), for NPDC (USD6 billion) and for other third party financing (USD 2 billion). In addition, domestic crude lifted by the NNPC amounted to about USD28 billion. This domestic crude component was not reflected in the CBN's foreign accounts, but rather paid directly in Naira into the Federation Account. Taking account of these various exports conducted on behalf of the non-NNPC parties, the total of USD67 billion was mostly accounted for. This substantially addresses the issues raised by the CBN.
5. However, the Federation Account indicates that over the period January 2012 to July 2013, a shortfall of N1.716 trillion was recorded from the domestic crude oil receipts. This shortfall was acknowledged by NNPC, and explained to be the result of subsidy claims, unrecovered crude/product losses, and cost of strategic petroleum storage (which is currently not captured in the PPPRA template for refunds). This figure is also well-known to all stakeholders at the Federation Account Allocation Committee (FAAC), and is reported and updated on a monthly basis.
6. To tackle this shortfall in revenues, the Government has initiated various steps to address these challenges from both security and operational fronts.
7. As a result of the changing structure of the business arrangements – from joint ventures to production sharing contracts, alternative financing arrangements, and the impact of the fiscal regime on gas development – the government take in recent years has been declining. In this regard, a quick passage of the Petroleum Industry Bill (PIB) will help to reverse this trend.
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4. December 13, 2013,: World Press Conference at Protea Hotel, Asokoro, Abuja by the Group Managing Director of the Nigerian National Petroleum Corporation, Engr. Andrew Yakubu,, to Present NNPC's Position on the Allegation of Non-Remittance of $49.8bn Oil Revenue from January 2012 to July 2013
| World Press Conference | |||
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5. December 11, 2013: Press statement signed by the General Manager, Media Relations Department of the NNPC, Dr. Omar Farouk Ibrahim, refuting CBN Governor Sanusi's Claim about $49.8 billion
African Examiner
$49.8bn: NNPC Refutes Sanusi's Claim
Wednesday, December 11th, 2013
The Nigerian National Petroleum Corporation (NNPC) has refuted reports credited to the Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi, alleging that it withheld the sum of $49.8bn representing 76% of the total crude oil revenues from January 2012 to July 2013.
In a statement signed by the General Manager, Media Relations Department of the NNPC, Dr. Omar Farouk Ibrahim, and made available to the press, the Corporation clarified that the allegation is borne out of misunderstanding of the workings of the oil and gas industry and the modality for remitting crude oil sales revenue into the Federation Account.
"For the avoidance of doubt, it needs to be stated that the figure of 594.024 million barrels of crude oil given by the CBN as the total crude oil lifting for the period of January 2012 to July 2013 does not represent the correct picture of crude oil lifting for the period. From our records, the correct figure is 618.55m barrels. This shows that the CBN understated the actual crude lifting by 4.13%," Dr. Ibrahim stated.
He explained that revenue from crude oil liftings are in various categories, namely Equity Crude; Petroleum Profit Tax, Royalty, Third Party Financing and the Nigerian Petroleum Development Company, NPDC. Revenues from each of these categories are statutorily collected by different agencies of the government. The NNPC collects only one of the aforementioned categories, namely Equity Crude. Petroleum Profit Tax is collected by the Federal Inland Revenue Service, FIRS, Royalty goes to the Department of Petroleum Resources, DPR, Third Party financing goes for Research, Development, Program and Satellite fields Development, while NPDC goes to NPDC for upstream development.
While NNPC pays proceeds from Equity crude directly to the Federation Account with the CBN, the FIRS and DPR pay PPT and Royalty respectively into the Federation Account with the CBN. The sum total of these proceeds make up the alleged unremitted revenues, Dr. Ibrahim stated.
"The 24% of total crude oil revenue receipts which the CBN governor is reported to have acknowledged that NNPC remitted represents the proceeds from the equity lifting which NNPC is directly responsible for. The alleged unremitted 76% was paid to the agencies that are statutorily empowered to receive them for onward remittance into the Federation Account", Dr. Ibrahim explained.
He stressed the need for institutions of the Federal Government and top government functionaries to seek understanding of issues that are not clear to them from relevant agencies rather than go public with misleading information that is capable of creating public disaffection. He expressed NNPC's availability at all times to meet with all relevant stakeholders to clarify issues.
Dr. Omar Farouk Ibrahim
General Manager, Media Relations Dept. NNPC Abuja.
10th December, 2013
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6. September 23, 2013: CBN Governor writes letter to President Goodluck Jonathan
September 25, 2013
H.E. Dr. Goodluck Ebele Jonathan
President and Commander-in-Chief
Federal Republic of Nigeria
State House
Abuja
Your Excellency,
Subjects:
*Non-Repatriation to the Federation Account by Nigerian National Petroleum Corporation (NNPC) of $49.8 Billion representing 76% of the value of crude oil liftings in 2012 and 2013
*Failure of NNPC to pay N22billion Nigerian Export Supervision Scheme (NESS) Levy Other Related matters
I am constrained to formally write your Excellency, documenting serious concerns of the Central Bank of Nigeria (CBN) on the continued failure of the Nigerian National Petroleum Corporation (NNPC) to repatriate significant proportions of the proceeds of crude oil shipments it made in gross violation of the law. Sources of Federation Account Revenues include proceeds from Export of Nigeria's crude oil by the NNPC, Petroleum Profits Taxes, and Penalties for gas flaring, oil exploration licenses and concession block allocations, etc.
Our analysis of the value of crude oil export proceeds based on the documentation received from pre-shipment inspectors shows that between January 2012 and July 2014 NNPC lifted 594,024,107 barrels of crude valued at $65,332,350,514.57. Out of this amount, NNPC repatriated only $15,528,410,098.77 representing 24% of the value. This means the NNPC is yet to account for, and repatriate to the Federation Account, an amount in excess of $49.804 billion or 76% of the value of oil lifted in the same period.
Your Excellency, I have attached as an appendix, a table giving the analysis of the crude oil lifting and repatriations as prepared by staff of Trade Exchange and Banking Payments System Departments of the CBN based on the firm documentation in their possession. The failure of NNPC to repatriate these amounts constitutes not only a violation of constitutional provisions but also of both the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act No. 17 of 1995 and the Pre-Shipment Inspection of Exports Act No. 10 of 1996 which stipulates that "An exporter of goods, including petroleum products, shall open, maintain and operate a foreign currency domiciliary account in Nigeria into which shall be paid all exports proceeds corresponding to the entire proceeds of the exports concerned".
Your Excellency, you will recall that as far back as late 2010, I had verbally expressed deep concern about what appeared to be huge shortfalls in remittances to the Federation Account in spite of the strong recovery in oil price. At a recent NEMT meeting in the Presidency, I also expressed a strong view that while Government needs to continue its effort to combat oil thieves, vandals and illegal refineries in the Niger-Delta, the major problem is transactions taking place under legal cover with huge revenue leakages embedded therein.
Your Excellency, it is my respectful view that a place to begin is to insist on NNPC to account fully for all proceeds that were diverted away from its accounts with the CBN and the Federation Account. There are also other lines of inquiry which your Excellency may wish to authorize and pursue.
These include;
*A thorough audit of activity on any domiciliary accounts held by NNPC outside of the CBN. This is because the CBN has no record of either the dollar proceeds of these diverted sales or the naira equivalent being transferred to the Federation Account.
*An examination of banking records of companies involved in Oil lifting and swap deals, including audit trails of regular payments to third-parties;
*An independent review of the terms and condition of Oil lifting and swap contracts for fairness and equity and transparency; Investigation and prosecution of Bureau de change (BDC) that have purchased hundreds of millions of dollars from the inter-bank market and are unable to account for these monies. We have compiled a list of these companies with recommendations for prosecution under Anti-money Laundering Laws;
*Investigation of obvious avenues for money laundering, such as companies that sell private jets to Nigerians. The Central Bank stands ready to render full assistance and provide as much data as possible to assist these inquiries.
Your Excellency, as an indicator of how bad this situation has become, please note that in 2012 alone, the Federation Account received $28.51billion in Petroleum Profits and related taxes but only $10.13billion from crude oil proceeds. In the period January-July 2013 the corresponding figures are $16.65 billion and $5.39 billion, respectively. This means, Your Excellency, that in the first seven months of the year, taxes accounted for 76% of the total inflow from this sector, while NNPC crude oil proceeds, accounted for only 24%.
You will also note, Your Excellency, that NNPC liftings amounted to 64% of total oil liftings from Nigeria during the reference period, and yet its remittance represented only one-third of the taxes paid by the oil companies that exported the balance of 54%.
Finally, your Excellency, we would like to report that NNPC has failed to keep up with payments of its levies under Nigerian Export Supervision Scheme (NESS) in line with this law, and currently owes the Federal Government N22 billion.
As banker to the Federal Government and Economic adviser to the President, I am obliged to draw the President's attention to these serious issues of which you have most probably never been aware in this detail.
To sumamarise, my recommendations are to respectfully advise the President to:
Require NNPC to provide evidence for disposal of all proceeds of crude sales diverted from the CBN and the Federation Account; Investigate crude oil lifting and swap contracts, as well as the financial transactions of counter-parties for equity, fairness and transparency; and Authorise prosecution of suspects in money-laundering transactions, including but not limited to BDCs who are unable to account for hundreds of millions of dollars. I trust your Excellency will find the content of this letter useful and hereby reaffirm the support of Central Bank of Nigeria for your Government's transformation agenda and effort to serve the Nigerian people.
While thanking you for your consideration, please accept, Mr. President, the renewed assurances of my highest regards.
Yours Sincerely,
Mallam Sanusi Lamido Sanusi (CON) Governor, Central Bank Of Nigeria
--Pa Ezeana:I believe it is now readily apparent that corruption in Nigeria has no ethnic coloration. Nigerians from all ethnic groups from the largest to the smallest have all participated in looting the treasury. Looting is a crime of opportunity.We must refrain from raising the spectre of 'discrimination' against any particular ethnic group when the accused looters are being investigated and or prosecuted.If your kin is being investigated chances are he or she has had theopportunity to get a seat at the feeding trough where the looterstake their blood meal.If you ever thought that your ethnic kins are being disproportionatelyprosecuted, chances are that your kins have probably enjoyed a 'disproportionate'privilege that is out of proportionto the size of their population in the country.There would for example be much fewer Idoma being investigated for corruption at any given time than there are Yoruba, Igbo or Hausa-Fulani because of their status as a minority ethnic group in Nigeria.However, the per capita no of corruption cases amongst the Idoma would be almost the same as amongst the major and any other minority groups.This is because excessive greedis an equal opportunity vice that has no ethnic preference in Nigeria!Bye,Ola
Sent from my iPhone
On May 4, 2016, at 18:14, 'Ezeana Igirigi Achusim' via OkonkwoNetworks <okonkwonetworks@googlegroups.com> wrote:OkonkwoNetworks..........Building NIGERIA of our DREAMThis is Nigeria. You don't know who or what to believe anymore. This morning, I woke up to the news that there was a bomb explosion at Onitsha. I thought the Fulani herdsmen terrorist had hit Onitsha. But it turned out it was an fire involving gas cans, and this happened in Ogbaru.$20 billion is a lot of money. It should be easy to trace, if it was real. They could not trace the $billions that caused Sanusi of CBN to become Emir and they gave up. They are unable to trace the $20 billion of NNPC, but they refuse to give up because an Igbo involvement was suspected. Do you see anyone tracing the Halliburton Bribery Scandal amounts? No. Why? Because there are no Igbo on that list.And I amEzeana Igirigi AchusimOdi-IsaaNwa Dim Orioha AkA OnyeukwuSent from my iPhone
On May 4, 2016, at 4:21 PM, Joe Attueyi topcrestt@yahoo.com [NIgerianWorldForum] <NIgerianWorldForum@yahoogroups.com> wrote:--Dr Kassim,Don't you believe that ONE YEAR after a government elected to fight corruption we should NOT be speculating / betting on whether or not SLS ( as he then was) was lying or truthful on the issue.Or speculating on ' How did Diezani get her hands on the hundreds of millions in USD that she allegedly distributed through Fidelity Bank to bribe INEC and other officials just before the elections? "We are talking of $20 billion. The same amount of the federal 2016 'padded budget'.You wrote:I hope and pray that you are coming around to accept the realitythat a large amount of the funds derived from the sale of Nigeriancrude oil went into private pockets especially the leaders of thePDP.That is what SLS said. $20 billion worth of oil proceeds. And I want to believe him. Which is why I am shocked that you are NOT concerned that ONE WHOLE YEAR since coming to office NO SINGLE PERSON is answering any questions in any court about this humongous amount.Do you know something we don't know ?Inquiring minds want to know. Even SLS is crying out :No reasonable explanation for $20 billion, $6 billion was with NPDC that had not gotten to the federation account till date."--Pastor Joe:My bet is that SLS has always been clearand truthful on this issue.There is a total amount of $20 Billion USD thathad allegedly gone missing and unremitted tothe CBN when SLS served as the Gov of the bank,As Fela said in his days, all that we are getting aredabaru and wuru wuru lazy and confusing explanationsabout 'money no missing.'How did Diezani get her hands on the hundreds ofmillions in USD that she allegedly distributed through FidelityBank to bribe INEC and other officials just before the elections?How can oil be lifted from the Nigerian oil but the funds are notpayable to the FGN?I do not believe that the PMB has been indicted on any of thesecharges. It is not easy to fight corruption as corruption always fightsback.I hope and pray that you are coming around to accept the realitythat a large amount of the funds derived from the sale of Nigeriancrude oil went into private pockets especially the leaders of thePDP.Bye,Ola---- Original Message ------
From: 'Joe Attueyi' via NaijaEvent <naijaevent@googlegroups.com>
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Sent: Wed, May 4, 2016 3:46 pm
Subject: Sanusi: My letter to Jonathan on 'missing $20bn' was leaked by Amaechi | TheCable
Folks,One can understand GEJ covering up $20 billion allegedly stolen from NNPC under his presidency. But how do we explain the fact that PMB elected to fight corruption has done ABSOLUTELY NOTHING about this humongous amount? In one year? An amount equal to our 2016 'padded' budget? While we are looking for $2 billion to borrow?
These questions are beginning to create credibility problems for Emir Sanusi? Is PMB implying that Emir Sanusi lied or what?
I believe the good Emir is beginning to defend himself by saying "No reasonable explanation for $20 billion, $6 billion was with NPDC that had not gotten to the federation account till date."
This matter must NOT be swept under the carpet. Prof Abba and Dr Kassim where art thou?
'.."No reasonable explanation for $20 billion, $6 billion was with NPDC that had not gotten to the federation account till date."--
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