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Subsidy: Reps Uncover How Oil Companies Defraud Nigeria

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By Mathew Dadiya, Abuja

The House of Representatives has uncovered how oil companies in Nigeria  export crude oil for refined petroleum products but fail to account for the by-products.

At the resumption of the hearing of the House special adhoc committee on petroleum products subsidy regime in Nigeria from 2017 to 2021, the lawmakers were shocked upon discovery that operating companies don’t account for by-products.

The lawmakers lamented that despite the cost of the by-products which they noted was higher than crude itself, oil companies were shortchanging Nigeria by failing to give account of what becomes of the products.

The head, business development of Hyde Energy, an oil company, Abdulwahab Useni who appeared before the committee stood his ground as he refused to disclose to the lawmakers how the company makes profit from crude export and import of refined products.

Despite pressure from members of the committee, Useni who stood in for the managing director of the company, also refused to explain to the lawmakers what happens to the profit of the crude oil by-products.

This compelled Hon, Isiaka Ibrahim to call for a closed-door investigation when invitees failed to make open, relevant information concerning financial transactions.

The committee members as a way of ascertaining both the export and import value of crude and refined products sought to know from Hyde Energy, the countries it exports its crude to.

According to the lawmakers, this will enable the committee to write to embassies of the countries in question to uncover details of such transactions.

In another development, the Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami, has said state governors have no basis to complain about the $418 million deductions from the Paris Club refund paid to consultants they hired.

The minister said that the complaints arising from the Nigerian Governors Forum (NGF) was not only unjustified but “a clear case of absence of defence.”

He spoke when he featured on the Ministerial Media Briefing organized by the Presidential Communications Team on Thursday at the Presidential Villa, Abuja.

The AGF also disclosed that a total of 648 cases instituted against the president, federal government and its agencies, before states, federal and ECOWAS Court were served on the Ministry, adding diligent defences of these cases in the year 2022 alone has saved the government from huge judgment debt liability to the tune of N54,888,343,888.52.

The Ministry has made appreciable progress in the actions being taken to challenge the $10 billion case between Nigeria and the Process & Industrial Development(P&ID) and was able to convince the court to set aside the case which he said may soon commence. 

The AGF noted that the governors created the liability whose payment they have also indemnified.

Fielding question on why despite a presidential directive to suspend the deduction from the Paris Club Refund, he has not deemed it fit to enforce the directive as some deductions were said to  have been made, he stated that when the Nigeria Governors Forum (NGF) requested the refund, one of the component was the settlement of the consultants who were engaged by the Forum.

The Minister recalled that when the refund was initially paid to the states, part payment was also made to the consultants.

Malami further disclosed that the governors later decided to stop the payment and asked for an out-of-court settlement.

He said this resulted in a request to the President to make the payment, a request he said, was then passed on to the Office of the AGF for a legal opinion.

The minister noted that after being subjected to necessary checks, it was found that there was no element of fraud involved.

The indemnity of the governors was also sought and received, he disclosed.

“On the issue of Paris Club that is raised. You mentioned that there exists a presidential directive that payments should not be made and then in breach of that position directives payments were perhaps made, may be arising from the conspiracy between the Attorney General of the Federation and Minister of Justice payments have been made. 

“I think you need to be informed first, as to the antecedents, prevailing circumstances and how the liability arose but one thing I’m happy to state, which I want to reiterate having stated the same earlier, is the fact that the Office of the Attorney General and the government of President Muhammadu Buhari has not indeed incurred any major judgment debt for seven years it has been on. 

“Now, coming to the antecedents background of the Paris Club. The liability or judgement debts related to Paris Club was indeed a liability created by the Governor’s Forum in their own right.”

“The Governor’s Forum comprising of all the governors sat down and commonly agreed on the engagement of a consultant to provide certain services for them relating to the recovery of the Paris Club. So, it was the Governor’s Forum under the federal government in the first place that engaged the consultant.

“Two, when eventually, successes were recorded, associated with Paris Club, the governors collectively and individually presented a request to the federal government for the fund. And among the components of the claim presented for the consideration of the federal government was a component related to the payment of these consultants that are now constituting the subject of contention. So the implication of that is that the governors in their own right recognized the consultant, recognized their claim and presented a such claim to the federal government.

“Three, when the claims were eventually processed and paid to the Governor’s Forum. They indeed on their own, without the intervention of the federal government took steps to make part payments to the consultants, acknowledging their liability over the same.

“And then four, when eventually they made such payments at a point they decided to stop the payment. The consultants instituted an action in court against the Governors Forum.  They submitted to consent judgment. They asked and urged the court to allow them to settle out of court. 

“The court granted them an opportunity to settle. They committed the terms of settlement in writing, they signed  the terms of settlement, agreeing and conceding that such payments be made to the consultant.

“And then five, thereafter, the federal government under the administration of President Muhammadu Buhari was requested to comply with the judgment and effect payment. 

“The President passed all the requests of the governors to the Office of the Attorney General for consideration. I suggested to the President the face value of the judgment and the undertones associated with the consultancy services. 

“It was my opinion, the same treatment we meted to P&ID, that let us subject this claim, the consent judgment to an investigation by the agencies of the government. Mr President approved, I directed the EFCC and DSS to look into these claims and report back to the office of the Attorney General. 

“And these agencies reported and concluded that there is no problem undertone associated with it. The government may continue to sanction the payment dependent. Now, that was the background.

“Even at that, we took further steps after receiving these reports from the EFCC among others, to demand indemnity from the governors. You, as a forum, incurred  this liability, as a forum you submitted to consent judgment. We have subjected these claims to investigation and we have a report, but even at that, we need independent indemnity from you, establishing that it is with your consent and understanding that these payments should be made, in writing. 

“And I’m happy to report to you that the governors individually and collectively provided the desired indemnity to the Office of the Attorney General, conceding, agreeing and submitting, that the payment should be made.

“Yes, and that was the ground and the basis on which we eventually decided by advising the president that the payment should be made. And then along the line, there was a change of leadership of the Governors Forum. And all the noise-making that is now being generated arising from the Governors Forum is not only unjustified but indeed, a clear case of absence of defence.

“But one other point of interest you may wish to note is the fact that the new leadership of the Governors Forum instituted an action, even when the federal government was indeed acting based on the judgment of the Supreme Court. They now embarked on a fresh legal suit, challenging the payment, challenging the previous agreement, challenging the indemnity and the court dismissed the application. Their case was dismissed by the Federal High Court.

“So that is the foundation and I’m happy to report one, that the judgment and contention was a judgment that was obtained long before the Attorney General, Abubakar Malami came into office, long before the administration of President Muhammadu Buhari came into office. 

“It was a product of their own doing and they had it submitted to judicial proceeding, judgment was entered against them. They have committed to the payment of the money, they have on their own indeed effected part payment. I closed my case and I will not like to answer any further questions on that,” the minister explained. 

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May 29th Tragedy: Flash flood kills 21and wash away 50 houses in two Niger Communities

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From Dan Amasingha, Minna

Tragedy struck in two Niger Communities as flash accompanied by heavy down pour that lasted for hours led to heavy flood that claimed 21 lives and washed away over 50 houses. The heavy down pour which started late on Wednesday, the 28th of May lasted till mid Thursday leaving behind tells of woes and deaths.

Niger State emergency management agency confirmed the deadly flood in a statement by the Director General Abdullahi Baba Ara on Thursday evening.
” NSEMA is in receipt of report of a deadly flood disaster that ravaged two communities of Tiffin maza and Anguwan hausawa in Mokwa town of Mokwa LGA” He disclosed that, the incidence occurred last night (Wednesday)during a torrential downpour of very high intensity that lasted several hours.
According to him, the surging flood water submerged and washed away over 50 residential houses with their occupants.Tge Agency Director General disclosed that, ” in response the Agency, in collaboration with Mokwa LG Authority, local divers and very brave volunteers are conducting search and rescue operation to rescue survivors and recover corpses .” At present 3 servivors ( a woman and her 2 children) are receiving treatment for wounds and shock at Mokwa general, while 21 corpses have so far been recovered of those who sadly loss their lives in the incidence” Alhaji Abdullahi Baba Ara said over 10 persons are still missing as search and rescue operation is still ongoing.

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My Administration, Policies Are Working,  Says Tinubu

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By Andrew Oota , Abuja

President Bola Tinubu has declared that his administration’s economic reforms and policies  were working for the progress of Nigeria and the good of all.

The President also  stated that his administration would make life better for Nigerians acknowledging the sacrifices made so far, with a conviction  that his vision for the country is clear.

Tinubu  said this in a statement issued to commemorate the second anniversary of his administration on Thursday, May 29, 2025.

He stated that his administration had stabilised the nation’s economy, noting that “we are now better positioned for growth and prepared to withstand global shocks.

He pointed out that , “Today, I proudly affirm that our economic reforms are working. We are on course to build a greater, more economically stable nation.

“Under our Renewed Hope Agenda, our administration pledged to tackle economic instability, improve security nationwide, reduce corruption, reform governance, and lift our people out of poverty.

“While implementing the reforms necessary to strengthen our economy and deliver shared prosperity, we have remained honest by acknowledging some of the difficulties experienced by our compatriots and families.

”We do not take your patience for granted. I must restate that the only alternative to the reforms our administration initiated was a fiscal crisis that would have bred runaway inflation, external debt default, crippling fuel shortages, a plunging naira, and an economy in a free-fall.

“Despite the bump in the cost of living, we have made undeniable progress.”

The president further stated that he acknowledged the sacrifices many Nigerians have been making for the development of the country, adding: “Our journey is not over, but our direction is clear. So is our resolve to tackle emerging challenges.

“By the Grace of God, we are confident that the worst is behind us. The real impact of our governance objectives is beginning to take hold.

“The future is bright, and together, we will build a stronger, more inclusive Nigeria that we can all be proud of.” He said.

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Seven Months After, Reps Pass Harmonized Tax Reform Bills

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By Eze Okechukwu and Ubong Ukpong,Abuja

House of Representatives on Wednesday passed the tax reform bills transmitted to the National Assembly by President Bola Tinubu in October 2024.The bills were passed at a session presided over by the Deputy Speaker, Benjamin Kalu.

The development followed the adoption of the harmonised versions of the reform bills by both the House and the Senate.
At plenary on Wednesday, the House of Representatives considered the report of the conference committee, which harmonised the bills.
The Chairman of the House Committee on Finance, Abiodun Faleke (APC, Lagos), who headed the House team to the conference committee, presented the conference report to the House for consideration.
According to him, the Conference Committee met and agreed on all areas of difference in the version passed by both chambers of the National Assembly. He stated that there were 45 areas of difference in the Nigeria Tax Administration Bill, 12 areas of difference in the Nigeria Revenue Service Bill, 9 areas of difference in the Joint Revenue Board Bill and 46 areas of difference in the Nigeria Tax Bill, adding that all grey areas were resolved ahead of the passage. While the conference committee agreed to retain the Senate version in some of the clauses, they also retained the House version in some others, making amendments in a few others. The conference committee agreed to the imposition of a 4 per cent development levy on the assessable profit of all companies chargeable to tax under Chapters 2 and 3, except small companies and non-resident companies. They also agreed that the levy shall be collected by the Nigeria Revenue Service and paid into a special account created for the same purpose.

In the sharing formula, the committee agreed that 50 per cent of the tax would go to the Tertiary Education Trust Fund, 15 per cent to the Education Loan Fund (up from 3 per cent agreed by the House), and 8 per cent to the Nigeria Information Technology Development Fund.

Similarly, the National Agency for Science and Engineering Infrastructure is to get 8 per cent (down from 10 per cent earlier agreed by both chambers), the National Board for Technology Incubation is to get 4 per cent from the fund, defence and security infrastructure is to get 10 per cent while cyber security fund will get 5 per cent.

Meanwhile, the Social Security Fund, Nigeria Police Trust Fund, and National Sports Development Fund were excluded from the list of beneficiaries passed by the House of Representatives.

The committee also adopted a new clause 158, which imposes a 5 per cent surcharge on chargeable fossil fuel products provided or produced in Nigeria and shall be collected at the time a chargeable transaction occurs.

The controversial Value Added Tax sharing formula was not part of the areas of disagreement between the two legislative chambers.

In his remarks, Kalu said the parliament has played its part in ensuring that the country moves forward, even as he urged the executive arm of government to do its part.

In his contribution, a member of the House representing Gwoza/Damboa/Chibok Federal Constituency, Borno State, Ahmed Jaha warned those who will clean up the bill not to tamper with any of the clauses passed, saying “Where the T is not crossed, don’t cross it, where the I is not dotted, don’t do it. We have the original copies of the bills as passed before and after harmonisation.

“We have had cases in the past where those in charge of cleaning up the bills tamper with it and at the end of the day, the President will withhold assent. That must not happen.”

That said, the All Progressives Congress lawmaker singled out Speaker Tajudeen Abbas and Deputy Speaker, Benjamin Kalu for praise, saying, “I want to thank your leadership for the role you played in making these bills a success. I also want to thank the Chairman of the Committee, Abiodun Faleke. He showed that he is truly a good elder. He provided a lot of training for some of us, and I want to say that this is the way to go.”

In a related development, the Senate has approved the Rivers State 2025 budget for a second reading.

The budget, which totals ₦1,480,662,592,442 trillion, was presented by the Senate Leader, Senator Michael Opeyemi Bamidele, on Wednesday.

Bamidele explained that the Senate had assumed legislative powers over Rivers State following the declaration of a State of Emergency in the state.

Supporting the motion, Senator Solomon Adeola Olamilekan emphasised the urgency of passing the budget to ensure that the people of Rivers State feel the impact of governance.

He said, “Mr. President, I am not exactly sure under what title this document is categorised, but from what I can see, it pertains to a budget under the state of emergency. I hereby support its passage for second reading so that the people of Rivers can feel the presence of government.”

With no opposition to the motion, the Senate President, Godswill Akpabio, conducted a voice vote and referred the budget to the Ad-hoc Committee on Overseeing the Rivers State of Emergency for further legislative action.

Senate announced that the Sole Administrator of Rivers State, Vice Admiral Ibok-Ete Ekwe Ibas, along with other key state officials, would appear before a Joint National Assembly Ad-hoc Committee to defend the state’s 2025 budget. NASS holds commemorate 25 years of democracy, holds joint session,

Also,President of the Senate, Senator Godswill Akpabio, has announced that a joint session of the National Assembly will be held on June 12 to commemorate Democracy Day.

He made the announcement after the upper chamber reconvened for plenary on Wednesday.

Akpabio revealed that the Senate leader, Senator Opeyemi Bamidele, the Senate minority leader, Senator Abba Moro as well as the Chairman senate services, Senator Sunday Karimi will meet with their counterparts in the House of Representatives to finalize the programme of activities and coordinate arrangements for the special session.

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