The Federal Government is set to commence a fresh audit of the N2.8tn fuel subsidy claim by the Nigerian National Petroleum Company Limited.

An audit firm, KPMG had conducted an initial audit reducing the claims from N6tn to N2.7tn.

The Federal Government is also considering either engaging an external audit firm or directing the Office of the Auditor General of the Federation to verify the claims made by the corporation regarding the amount the government owes the oil firm.

The latest plan was revealed in the minutes of the Federal Account Allocation Committee meeting held in March 2024, a copy of which was obtained by our correspondent.

On May 30, 2023, a few hours after the “subsidy is gone” declaration by President Bola Tinubu, the NNPCL Group Chief Executive Officer, Mele Kyari, told State House correspondents that the federal government still owes the firm the sum of N2.8tn spent on petrol subsidy.

While saying the NNPCL footed petrol subsidy bills from its cash flow, Kyari said the government had so far been unable to pay back the N2.8tn.

He said “Since the provision of the N6tn in 2022, and N3.7tn in 2023, we have not have not received any payment whatsoever from the Federation.

“That means they (the Federal Government) are unable to pay and we’ve continued to support this subsidy from the cash flow of the NNPC. We are waiting for them to settle up to N2.8tn of NNPC’s cash flow from the subsidy regime and we can’t continue to build this.”

But giving an update on the issue during the FAAC meeting, the Minister of Finance and Chairman of the committee, Wale Edun, said Tinubu was committed to ensuring that the forensic audit of NNPC Limited was conducted and the results analysed.

NNPC’s claim

He stated that the audit would span from 2015 to 2021, aiming to verify the authenticity of NNPC/Federation Account claims on the N2.7tn.

Edun further proposed that the OAuGF be considered for the fresh audit over any other external audit, considering their expertise in auditing.

The minutes read in part, “The Chairman informed the members of Mr President’s commitment to ensuring that the forensic audit of NNPC Limited was conducted. He, however, proposed that since the Office of the Auditor-General for the Federation had expertise in the areas of auditing, the Office would be considered first before any other external audit firm. He added that where external support would be required, an independent firm could be engaged, accordingly.”

However, the suggestion was dismissed by the Ogun State Commissioner for Finance, Dapo Okubadejo, who argued that engaging an independent auditor would mitigate potential conflicts of interest during the exercise.

Other commissioners, such as Isaac Kamalu of Rivers State and Lawal A. Maikano of Niger State, contributed additional perspectives to the discussion.

Ultimately, consensus was reached to prioritise the OAuGF, with the proviso to engage an external audit firm when deemed necessary for additional support.

The minute later read in part, “The HCF, Ogun State observed that given the diverse nature and objectives of the proposed audit exercise and to prevent conflict of interest, it would be better to engage an independent auditor to conduct the exercise so that other tiers of government will benefit from that level of independence. The HCF, Niger State supported the position and stressed the need to ensure inclusiveness and objectivity in conducting the exercise. On his part, the HCF, Rivers State observed that the engagement of an independent auditor would not necessarily guarantee the success of the exercise. He, therefore, suggested the need to combine both OAuGF and external firms to ensure the success of the exercise.

Federation account

“Contributing, the Federal Commissioner, Revenue Mobilization, Allocation and Fiscal Commission/Chairman, Indices and Disbursement observed that the proposed audit was in respect of some outstanding claims which include the N6tn against NNPC Limited that was subsequently reduced to N2.7tn after initial reconciliation. He informed members that KPMG which carried out the earlier audit exercise of NNPC had looked at some of the claims and recommended further audit to resolve them.

“Concluding, the meeting agreed that OAuGF would be considered first and an external audit firm would be engaged when necessary to provide additional support.”

Efforts to reach the Chief Corporate Communications Officer, NNPC Ltd., Olufemi Soneye, for comments, proved abortive as of press time on Wednesday. He neither picked up calls made to his telephone line nor replied his WhatsApp messages.

Meanwhile, the Commissioner of Finance, Delta State, Okenmor Tilije, at the meeting, raised concerns over the alleged utilisation of multiple exchange rates by agencies of the Federal Government in the conversion of revenue inflow.

According to him, the practice affects the revenue remitted into the Federation Account.

The commissioner claimed that NNPC Limited applied three different rates to convert the revenue earnings from oil, saying this cumulated in an exchange rate differential of about N2.83tn between August 2023 and February 2024.

He highlighted the different rates including the CBN Mandated Exchange Rate of N1,185, the rate of N853 applied to Domestic Oil Payables, and the Weighted Average Rate of N714.50 on NNPC Limited Royalty and Taxes.

The minute read, “The HCF, Delta State raised concerns over the multiple exchange rate being applied by the agencies to convert the revenue inflow due to the Federation. He pointed out that NNPC Limited applied three different rates to convert the revenue earnings from oil. He observed that the sum of N2.83tn was the Exchange Rate Differentials from August 2023 to February 2024 and stressed the need to put in place a single exchange rate that would be applicable across the board.

The Nigerian military has pulled out of Okuama community in Ughelli South Local Government Area of Delta State.

According to sources in neighbouring Akugbene and Okoloba communities in Bomadi local government area, the soldiers pulled out of the embattled community, Tuesday, 7th May, 2023, suddenly without any prior information to do so.

Confirming the development, Governor Oborevwori expressed appreciation to President Bola Tinubu and the military high command for the withdrawal.

“My dear good people of Delta state, I have the pleasure to announce to you that, upon many deliberations and collaborations between the state government and the military leadership, the Nigerian Army has agreed to withdraw its officers and men from Okuama.

“I spoke with the Chief of Army Staff, Lt. Gen. Taoreed Lagbaja on Monday, 6th of May, and as at today, 8th of May, 2024, the military have withdrawn from Okuama.

“With this development, the people of Okuama can now safely return to their homes and begin the process of reintegration and rebuilding their homes.

“I want to express my deep and profound gratitude to Mr. President, the Chief of Army Staff, and the hierarchy of the Nigerian Army for their understanding and cooperation.

“In my engagements with them, they demonstrated the highest level of concern and care for the plight of the displaced persons. To God be the glory that we have achieved an amicable resolution,” Oborevwori said.

He also commended members of the National Assembly, other distinguished Nigerians, traditional rulers and other leaders of thought who stood with the state throughout the Okuama saga.

He added, “Let me assure all Deltans and residents in the state that this administration is irrevocably committed to enhanced peace and security in the state as contained in our MORE agenda.

“It is also pertinent to point out that matters of security are better handled with tact, wisdom and patience; it is not meant to be a subject of daily media discourse as some would have wanted.

“As the people of Okuama start the process of returning to their homes, I pledge the commitment of the Delta State Government to make that process smooth and seamless.

“We shall render all the necessary assistance they need to enable them settle down quickly and joyfully in Okuama,” the governor said.

He prayed that Delta State would never “experience the kind of tragedy that happened in Okuama.”

“Security, as we all know, is a shared responsibility. So, we will continue to count on the support and cooperation of every citizen to ensure that our state remains safe and peaceful.

“Once again, I commiserate with the families of victims of the Okuama incident,” the governor stated.

The House of Representatives has opted against proceeding with the proposal to suspend the cybersecurity levy.

Naija News reported that CBN had issued a new directive to all financial institutions, including commercial, merchant, non-interest banks, payment service banks, and mobile money operators, mandating the implementation of a 0.5% cybersecurity levy on all electronic transactions.

This move is in line with the provisions of the recently amended Cybercrime (Prohibition, Prevention, etc.) Act 2024.

The directive, detailed in a circular, instructs that the levy be applied at the point of electronic transfer origination, with the deducted amount to be reflected in the customer’s account as a “Cybersecurity Levy.”

The cybersecurity levy has received criticism from Nigerians.

During Wednesday’s session, lawmaker Manu Soro expressed concern over the proposed levy, citing its inappropriate timing given the ongoing challenges facing many Nigerians.

The lawmakers argued that the National Security Adviser (NSA) should not be responsible for handling funds as it is a political role.

However, the Speaker of the House, Tajudeen Abbas, encouraged the lawmaker to withdraw the motion.

He said that the House leadership will discuss the situation and determine the best course of action.

The naira further depreciated against the US dollar despite the Economic and Financial Crimes Commission’s clampdown on foreign currency speculators in the FX market.

FMDQ data showed that the naira dipped to N1,421 per dollar on Wednesday from N1416.57 on Tuesday.

The figure represents a N4.46 depreciation against the dollar on a day-to-day basis.

Similarly, the naira dropped to N1438 per dollar on Wednesday from N1430 the previous day in the parallel market section.

A Bureau De Change operator in Zone 4 Abuja, Mistila Dayyabu, told DAILY POST that operators of the anti-graft agency raided and arrested some BDC operators on Wednesday.

“EFCC operators came again today; they arrested selected BDC operators who have cash. On Wednesday, the dollar was sold at N1438 and bought at N1432,” he said.

DAILY POST recalls that EFCC resumed clampdown on illegal BDC operators and cryptocurrency platforms to defeat the FX crisis.

On Tuesday, the Securities and Exchange Commission delisted naira from the cryptocurrency market to tackle naira instability in the FX market.

The lawmaker representing Ondo South Senatorial District in the National Assembly, Jimoh Ibrahim, has asked President Bola Tinubu to dissolve his cabinet.

The chieftain of the All Progressives Congress (APC) stated this during an interview on Channels Television’s Politics Today programme on Wednesday.

Ibrahim asked the President to drop some ministers from his cabinet and appoint knowledgeable and competent persons.

He stated that the current ministers don’t fall within the country’s “Grade A” and are not the best for the country, as seen so far since their appointment by the President.

The Ondo South Senator also opined that some of the ministers who have been accused of corruption should be dropped.

He said: “If you fail to do that, you will be carrying their burdens and that will be terrible for our country.

”You have to dissolve the cabinet, you have to come up with knowledgeable people, the cabinet is too cold and some of them accused of corruption should be dropped.”

Speaking further, Senator Ibrahim reiterated his reasons for describing the APC governorship primary election in Ondo state as a mega fraud.

He said: ‘The Governor of Kogi State Ahmed Ododo wrote a letter to INEC requesting a change of collation centre …. he didn’t communicate in that letter the new collation centre.’‘

The presidential committee on fiscal policy and tax reforms says there is a need to increase the value-added tax (VAT) rate.

Taiwo Oyedele, chairman of the committee, spoke on Monday while disclosing the VAT revenue-sharing formula would be reviewed.

He spoke at a policy exposure and impact assessment session organised by the committee.

Nigeria’s VAT rate is currently 7.5 percent.

Oyedele also said the committee has proposed reviewing state and local governments’ share of VAT revenue to 90 percent.

According to section 40 of the VAT Act, the federal government gets 15 percent of the tax revenue, states share 50 percent, and local governments share the balance of 35 percent.

However, Oyedele said the committee is recommending reducing the federal government’s share from 15 percent to 10 percent.

“We are proposing that the federal government’s portion should be reduced from 15 percent to 10 percent. States’ portion will be increased but they would share 90 percent with local governments,” he said.

Oyedele said the committee proposed adjusting the sharing formula for VAT because it is a tax of the states.

“In 1986, we had sales tax collected by states. The military came up with VAT in 1993 and stopped sales tax so they said it would collect VAT and return 15 per cent as cost of collection and that is the 15 per cent charged today came about. But we think it is too much,” he said.

The tax expert added that the burden of VAT should be on the ultimate consumer.

“So we must make it transparent and neutral and this is what over 100 countries where they have VAT are doing,” Oyedele said.

“Nigeria’s economy is more than 50 percent in services and if I just stop at this, many states will be broke because VAT collection will go down by more than 50 percent and it won’t even fly.

“So we therefore need to adjust the VAT rate upward. We would ensure that it doesn’t affect businesses. The only thing is to look at basic consumption from food, education, medical services and accommodation will carry zero percent VAT. So for the poor and small businesses, no VAT.”

Oyedele said other consumers will pay a bit more.

“We have spoken to businesses about it and they won’t increase the product price. We want to make sure when we do VAT reform, no one will increase the price of commodities. We will work the mathematics with the private sector,” he said.

Oyedele also said each state should not be granted exclusive custodianship of their collections– because it would likely result in chaos.

The house of representatives has denied demanding bribe from Binance, a popular cryptocurrency platform.

On Tuesday, the cryptocurrency giant said some unknown persons in Nigeria demanded huge payments in digital currency to make their “problems in the country go away”.

On February 28, the federal government detained two top executives of Binance as part of a probe bordering on illegal operations in the country and foreign exchange rate manipulations.

The detained executives included Nadeem Anjarwalla, a 37-year-old British-Kenyan and Binance’s regional manager for Africa; and Tigran Gambaryan, a 39-year-old US citizen and Binance’s head of financial crime compliance.

Nigeria’s government, on March 25, filed a criminal charge against Binance for “tax evasion” — the same period Anjarwalla fled detention.

Speaking on the issues, Richard Teng, Binance’s chief executive officer (CEO), in a blog post shared with TheCable, said despite multiple requests, Binance has still not received details of the allegations, “and our employees, therefore, inquired if there was an opportunity to submit our responses in writing and in the absence of a public hearing”

Teng said Binance held a meeting with the house committee on financial crimes (HCFC).

“There were a number of reasons for that, including the sensitivity of the information and getting the opportunity to see the allegations in full and prepare a thorough substantive response,” he said.

“On January 8, Binance employees had a face-to-face meeting with three members of the HCFC and a clerk in Abuja at the House of Representatives building for a scheduled pre-hearing engagement in private.

“The meeting was chaired by the Honourable Peter Akpanke, the Honourable Philip Agbese, and the Honourable Peter Aniekwe, as well as a clerk.

“During the conversation, the Committee highlighted the important nature of the issues at hand and the lengths to which they were prepared to go to summon Binance, including issuing arrest warrants against our team and CEO and preventing our team from leaving the country.

“While concerning, it was understood that the HCFC does not in fact have the power to issue arrest warrants.

“The meeting ended with the Chair confirming they would consider the matter and revert through Binance’s local counsel.

“However, as our employees were leaving the venue, they were approached by unknown persons who suggested to them to make a payment in settlement of the allegations.

“Later that day, our local counsel — representing us at that time — was summoned by the Committee through someone purporting to be their agent, who relayed the Committee’s terms and instructed our local counsel to advise us.”

‘NOTHING LIKE THAT EVER HAPPENED’

During plenary on Wednesday, Kama Nkemkanma from Ebonyi state, raised a “point of privilege”, saying the house never met with Binance and no bribe has ever been demanded.

“This house can never allow itself to be talked down,” he said.

The lawmaker said the allegation is capable of “bringing the house into disrepute” and should “never be taken lightly”.

Ruling on the point of privilege, Tajudeen Abbas, speaker of the house, said the clerk should “take note”.

“We need to use whatever media available to us to refute this allegation,” Abbas said.

“Nothing like that has ever happened. No committee of the house has ever engaged this man.”

THE INVESTIGATIVE HEARING

The house committee on financial crimes has been investigating Binance for multiple crimes, including alleged money laundering, illegal operations, financial terrorism, and tax evasion.

The committee is chaired by Ginger Onwusibe, lawmaker representing Isiala Ngwa south/Isiala Ngwa north federal constituency.

The committee invited the management of Binance on several occasions but the cryptocurrency firm sent legal representatives instead.

In one of the committee sittings in early March, the lawmakers turned back Senator Ihenyen, the legal representative of Binance.

It is unclear why Nkemkanma and Abbas said Binance never met lawmakers.

REPS TO PROBE ESCAPE OF BINANCE EXECUTIVE FROM CUSTODY

Meanwhile, the house of representatives has resolved to investigate the circumstances surrounding the escape of Anjarwalla, the Binance regional manager for Africa, from custody.

Anjarwalla escaped from custody in March but was reportedly rearrested in Kenya in April.

Workers under the aegis of the National Association of Nigeria Nurses and Midwives; the Amalgamated Union of Public Corporations Civil Service Technical and Recreational Services Employees; and the Senior Staff Association of Statutory Corporations and Government-Owned Companies on Wednesday protested against the sacking of 391 of the Lagos State Water Corporation (LWC) by the state government.

The protest rally kicked off at Ikeja under-bridge.

The protesters carried different banners with inscriptions like “Water Corporation needs more staff not sack!”, “Recall sacked staff of Lagos Water Corporation”, “Sanwo-Olu, employment is a right”, among others, are demanding the reinstatement of the sacked workers.

In April, the state announced the disengagement of the staff members, which it described as “redundant staff”.

LWC in a statement shared by Governor Babajide Sanwo-Olu’s senior special assistant on New Media, Jubril Gawat, on his official X handle, stated that the disengagement of the staff was part of ongoing restructuring in the corporation aimed at enhancing operational efficiency.

According to LWC, the decision to streamline the workforce was in response to the perennial challenge of water scarcity in the state.

No fewer than 425 staff of the corporation were served last year.

The corporation explained that its inability to reliably supply water has led to the shrinkage of its customer base, thereby affecting revenue generation.

“The Lagos Water Corporation has announced the disengagement of 391 redundant staff as part of its ongoing restructuring efforts aimed at enhancing operational efficiency and meeting the evolving demands of the organization. The decision to streamline the workforce is in response to the persistent challenge of water scarcity in the state despite extensive infrastructure projects.

“LWC has faced substantial financial and operational challenges, struggling to generate adequate revenue to meet its obligations. The corporation’s unreliable water supply has resulted in a shrinking customer base and declining revenue.

“In October 2023, the Corporation initiated a comprehensive Personnel Audit to realign its operations. Engr. Mukhtaar Tijani, the Managing Director, stated that the audit, led by the Office of the Head of Service since August 2023, identified the need for phased actions. The first phase involved the disengagement of 425 temporary staff with outdated contracts. The ongoing second phase targets permanent staff whose roles or offices have become redundant. The upcoming third phase will focus on retaining competent technical staff to enhance the utility and commercial efficiency of the Corporation.

“As part of the restructuring efforts, a performance improvement process has been established for the retained permanent staff, along with the formulation of precise job descriptions and Standard Operating Procedures (SOPs) to foster organizational excellence and efficiency,” LWC said.

The corporation noted that in line with the public service rules, the state government has approved the payment of three months’ salary in lieu of notice and redundancy payments. This, it said, is in addition to other statutory benefits.

“In line with the Public Service Rules, the State Government has approved the payment of three months’ salary in lieu of notice and redundancy payments, in addition to statutory benefits such as pensions for the affected staff.

“Furthermore, the Corporation has adopted a new organogram to enhance operations and financial sustainability. This strategic shift underscores the Corporation’s commitment to delivering sustainable and reliable water supply to the residents of Lagos State.

“The Lagos Water Corporation appreciates the hard work and dedication of the affected staff members over the years; however, this action is deemed imperative for the development of the state,” the statement added

The Aguttes auction house announced on Tuesday that Diego Maradona’s Golden Ball trophy, awarded for his outstanding performance as the best player at the 1986 World Cup, will soon be up for auction in France.

This iconic trophy, the first of its kind to be auctioned, is expected to command a significant price tag, with the auction house anticipating bids in the millions when it goes under the hammer on June 6th.

Maradona, who passed away in 2020, clinched the prestigious award after leading Argentina to victory in the 1986 World Cup held in Mexico. His remarkable contribution included five goals throughout the tournament, as he captained his country and showcased his brilliance on the field during every minute of play.

The 1986 World Cup remains etched in memory, particularly for Maradona’s unforgettable performance against England in the quarterfinals, where he scored two remarkable goals.

Jose Peseiro, the former head coach of Nigeria’s senior national team, continues to explain his decision to overlook NPFL players, citing their inferiority to foreign-based counterparts.

During his 20-month tenure, no NPFL player earned a spot in competitive matches for the Super Eagles, despite fervent discussions regarding their inclusion.

Peseiro departed after leading the team to a commendable second-place finish in the African Cup of Nations in Cote d’Ivoire, narrowly losing 1-2 to the host nation in the final.

Reflecting on his time with the Super Eagles, Peseiro emphasized the pressure to select NPFL talents but asserted his commitment to choosing the best players, especially after the team narrowly missed the World Cup.

“I watched many NPFL games, but none showcased the calibre of talent seen in foreign leagues. Quality must prevail over mere representation,” he remarked.

In a related development, former Super Eagles player Moses Kpakor urged Peseiro’s successor, Finidi George, to consider homegrown talents for national team selection.

Kpakor, renowned for his stints with BCC Lions and Abiola Babes, emphasized the importance of nurturing local talent and ensuring fair competition for national team spots.

“As a former NPFL player, I understand the value of giving home-based talents a chance. Finidi should prioritize merit over geography,” Kpakor asserted, advocating for inclusivity in player selection.