IT was pleasant news that David Cameron, Prime Minister of Britain was obliging to assist Nigerians to know what we never knew about our oil money that was never made public by the administration of President Goodluck Jonathan.At G8 Economic Summit in Davos on Thursday January 24th, 2013, Cameron expressed his concern over Nigeria’s oil and gas income. He averred that “l want this G8 to lead a big push for transparency across the developing world. To illustrate why, let me give you one example. A few years back a transparency initiative exposed a huge black hole in Nigeria’s finances, an $800m discrepancy between companies’ payments and government’s receipts for oil. This is leading to new regulation of Nigeria’s oil sector so the richness of the earth can actually enrich the people of that country.And the potential is staggering.Last year Nigerian oil exports were worth almost $100b, more than total net aid to the whole of Sub-Sahara Africa. Put simply unleashing the natural resources in these countries dwafts anything aid can achieve - and transparency is critical to that..“So we are going to push for more transparency on who owns companies, on who’s buying up land and for what purpose, on how governments spend their money, on how gas, oil and mining companies operate, on who is hiding stolen assets and how we recover and return them.“Like everything else in this G8, the ambitions are big - and I make no apology for that thirty years ago more than half the planet lived on the equivalent of $1.25 a day or less. Today it is around a fifth.” David Cameron said all these without apology to anybody who might felt exposed.Data released by the Energy Information Administration of the United States Department of Energy, showed that out of $1.15trillion released from oil by the 12 OPEC member states, Nigeria gets $90b, being the forth highest in the team in 2012.The Federal Inland Revenue Service also collected about N5 trillion as tax in 2012. While in 2011 the total revenue from oil was $65b with N4.62 trillion realised as tax the same year. Yet with all these income from oil & tax, and increased in oil production of 2.4 million bpd with over $100 per barrel, Nigeria became a worst country for a child to be born and saddest people on earth with dilapidated infrastructure as our lots and ever increasing debts profile both foreign and domestic with nothing to show for it physically. While some serious OPEC countries who also made great money from oil at the same time as ours are recording tremendious progresses.It is shameful that Quater with 1.7m population in 2011 released a plan to invest $150b of her oil wealth on infrastructure over 5years with already increased electricity generation from 2,200Mw in 2001 to 8,750Mw as of today. And Saudi Arabia with population of 28m people is planning to spend $100b to add 30,OOOMw to its 40,OOOMw currently generated. Venezuela is also investing her oil revenue into transportation, plus the construction of 1,000-kilomitre railway line at the cost of $l.lb.World Bank experts had equally stated before that Nigeria get 90% of her total revenue from oil, and 80% of her total revenue is in the hands of 1% of the population. Why is looting of the treasury so endemic and our leaders flagitious about making the masses poorer in Nigeria.It took the audacity of David Cameron to challenge our profligate leaders on the issues of $100b oil money accrued to Nigeria government last year alone, an equivalent of N15.6 trillion, and no response from the government’s poachers turned game keepers, ‘today’s men’, official minions and presidential vassals in defence of the great revelation from Britain.Premised on this clarion call by Cameron, the president peregrinated to London on what God knows mission on Tuesday 5th February, 2013 probably to sort out things with David Cameron in London on his open determination to enforce transparency and expose corruption in Nigeria oil and gas income. It was derisible that no British official was at the airport to welcome the Nigerian President save the Nigerian Ambassador and other Nigerian officials in London.David Comeron knew how much his country was given to the whole of Sub-Sahara Africa developing countries as aid, and was pained that what Nigeria government got from oil in last year alone was far greater than what all the aids can give, yet the money is not translated to better conditions of living for Nigerian masses in general.His interest in letting the wealth of Nigeria gets to the generality of Nigerians is loudable and commendable. It was heroic for him to have addressed the G8 members on the need for them to help expose who owns oil and gas companies, who own lands, how the money from oil and gas has been spent and who are those people hiding stolen money and assist to recover them and return them.The case of James Ibori that stole above $50b from Delta State that no Nigerian Court could cage him until Britain’s Metropolitan Police stepped into the case and got him convicted and incarcerated in London is enough to let our leaders cover their eyes in shame.The money that can finance our national budget in the next three years are yet to be accounted for.The government will need to brace up and speak out on this brazen allegation and make known to Nigeria public what happened to $100b or N15.6 trillion oil money they received last year because silence means consent and travelling to London now does not solve the problem, the cat has been let out of the bag already, for the news is already in the public domain, what we are waiting for is their explanation, whether David Cameron also gaffed like they carpetted the former Minister of Education, Oby Ejekwesili on her allegation that $67b was left in the treasury in 2007 i.e. $45b foreign reserves and $22b excess crude oil account had been sqandered by both Yar’adua and Jonathan’s governments ..David Cameron can never be given to frivolity as I can say, being an international man and world elder state man, who can never be given to riddle chatter.On Thursday 7th February, 2013 the report of the House Committee on finance an independent revenue generation and remittance to the consolidated Revenue Fund by government - owned agencies that was considered, alleged that many agencies of the government are not remitting their money generated from 2009 - 2012 to the tune of N8.8 trillion. What can we say of these agencies. Are they a disservice to the common interest of the common people of this nation or serving some notorious cabal.? The report revealed that in 2009, the agencies generated N3.06 trillion as independent revenue, but remitted only N46.8b or 1.53% to the treasury. In 2010, the agencies realised N3.07 trillion but remitted N54.1b or 1.76%.

Pastor Taiwo (JP)’ Social Anaylist & Public Commentator wrote in from No. 12 Okedoja Complex Takie/ldi Abebe Ogbomoso.


http://tribune.com.ng/news2013/index.php/en/component/k2/item/7267-david-cameron-on-nigeria-s-100b-oil-money.html

Old news.
We are not in January 2013.

Vessi: Old news.
We are not in January 2013.

We are still under the target regime.

Mayor_of_Lagos:

We are still under the target regime.

trash.
You are living in the past.
Deluded man.



Old skoooooooooooooool

By Femi Aribisala

IN 1987, at a reception in honour of President Ibrahim Babangida at the Waldorf Astoria, New York during his visit to the United States, I had an interesting conversation with Alhaji Abubakar Alhaji, then Permanent Secretary, Federal Ministry of Finance.He said he had just been to the World Bank where he was asked what happened to the $12.8 billion Nigeria had made from windfalls in the oil market as a result of the Iran-Iraq war.  I said to him: “What did you tell them, Sir.”  Alhaji Alhaji is a naturally blunt no-nonsense man.  He replied: “I told them to ask the military.”More recently, David Cameron, Prime-Minister of Great Britain, is reported to have asked President Goodluck Jonathan what happened to the $100 billion dollars Nigeria made from oil and gas exports in 2012, insisting that “lack of accountability and transparency is a big problem in Nigerian oil and gas industry.”

Before you ask what business is it of David Cameron’s how we spend our money in Nigeria, let me point out that the question apparently came up because President Jonathan went cap-in-hand to the Group of Eight industrial countries (G8) to solicit loans in international multilateral institutions for unspecified infrastructural industrial restructuring in Nigeria.  The fact that his request was rejected outright tells me our President could not give satisfactory explanation to the G8.  Why give aid to Nigeria when it is clear the money would largely be pocketed by strategically-placed pen-robbers within the Nigerian government?


Questions without answers: These questions about the routine disappearance of Nigeria’s billions just won’t go away, even though the presidency provides no satisfactory answer.  When I heard of David Cameron’s query, the first question I asked was whether Nigeria actually made that kind of money in 2012.  Who knew?  Not too long ago, our total income was not more than $5 billion a year.  I phoned a financial expert who confirmed that, based on the number of barrels of oil Nigeria was selling at the general market prices of 2012, that amount was very likely.

So we are back to the question; what happened to the money?  What did we do with it?  I live in Nigeria.  If we made that kind of money in 2012, I should know about it.  I should be able to point to one or two things done with the money.  But I cannot.  In 2012, to all intents and purposes, the Nigerian economy was in some kind of recession.  The business climate was dull.  Unemployment was high.  Yes, the economy grew statistically by 7.1 percent.  But statistics often have little relationship with the actual situation on the ground.

The nagging questions about the theft and squandering of Nigeria’s patrimony do not let up, and they are not only being asked by foreigners.  Oby Ezekwesili, a former World bank Director, stirred up the hornet’s nest by declaring that the combined administrations of Musa Yar’Adua and Goodluck Jonathan misappropriated literally billions of dollars.  She pointed out that Obasanjo left $45 billion in Nigeria’s foreign reserve account and another $22 billion in the excess crude account when he left office in 2007; being direct savings from increased earnings from oil under his administration.  These savings have completely disappeared without trace.  Where did these monies go?

The government has no explanation and would not accept Ezekwesili’s challenge to engage in a public debate on the matter.  The answer to such questions as these must remain relevant in the so-called democratic election of our next president.

Capital of money-laundering: 

As a country, Nigeria has a tendency to excel in the negatives.  One of these is in the league of international money-launderers.  Indeed, Nigeria is the money-laundering capital of Africa.  According to Global Financial Integrity, GFI, a WashingtonD.C. based research and advocacy organisation, Nigeria comes first among the African countries that have suffered from massive outflows of illegal funds between 1970 and 2008.  In a study entitled: “Illicit Financial Flows from Africa: Hidden Resource for Development,” GFI maintains Nigeria lost $165 billion, nearly 19 percent of the total $854 billion outflows from Africa, to the developed market-economy countries.  GFI also placed Nigeria seventh out of the 20 largest exporters of illicit funds worldwide, with a total figure $129 billion from 2001 to 2010.

With the exit of General Sani Abacha, the former Nigerian head of state from 1993-1998 who died in office, we suddenly discovered that money was looted directly from the Central Bank and transferred into secret bank accounts abroad.  In all, Abacha alone reportedly looted and laundered over $4 billion.

What this means is that a considerable amount of Nigeria’s income is round-robined back to our trading partners.  They get back part of what they pay us for our exports as our officials steal the money and funnel it back to them.  That means a significant amount of Nigeria’s earnings never benefits Nigeria or Nigerians.  Nigeria’s oil and gas income is used to develop further our trade partners in the developed market economy countries.This money laundering puts pressure on money markets as corrupt Nigerian officials buy up foreign-exchange for export. The Chairman of the Economic and Financial Crimes Commission, EFCC, Mr. Ibrahim Lamorde, revealed that as much as $14 billion in cash was taken out of Nigeria from January to August, 2012 through the nation’s airports.  This was corroborated by the Governor of Central Bank of Nigeria, Sanusi Lamido Sanusi, who puts his own estimates at about $11 billion.

Diminished valueIf some of these monies happen to come back, it is with diminished value.  They are not used to create real wealth or to enhance job opportunities.  They are not, in any case, in the hands of the industrious or the enterprising.  Instead they are laundered back into the less productive sectors of the economy, such as the overvalued real estate sector.  Little wonder then that some houses in Lagos and Abuja are as expensive as those in New York.Money launderers import goods at sub-market prices.  Since it is stolen money and their primary objective is to re-integrate their ill-gotten wealth stealthily back into the national economy, they don’t care if the goods are sold at a loss.  Therefore, their activities hinder domestic production because local producers cannot compete with the depressed prices of money-laundered imports.Western double-dealing: Grandstanding Western moralists like David Cameron who lecture Nigeria about the corruption of our leaders are themselves inherently corrupt.  If they were really against theft by government officials in developing countries, they would not readily accept stolen money in their countries.  However, while they rail against corruption, they create frameworks which permit them to receive stolen money with thanks.

Massive outflows

Some of this money ends up in choice real estate.  Others are hidden in fake offshore companies and investments entities whose ownerships are suitably disguised.  This makes it very difficult, if not impossible, for investigators to trace the monies, let alone recover them.  The GFI report said the massive outflows of illicit money out of Africa to the West was facilitated by “a global shadow financial system comprising tax havens, secret jurisdictions, disguised corporations, anonymous trust accounts, fake foundations, trade pricing, and money laundering techniques.”In a series of articles, the Financial Times of London revealed that much of the money stolen by corrupt soldier-politicians of Nigeria’s past military regimes ended up in British banks.  In an article entitled “Money laundering probe targets London” it said: “Banks in London played a key role in enabling former Nigerian dictator Sani Abacha to launder more than $4bn (£2.76bn) looted from the country during his four and a half year rule. The trail has led to accounts at London offices of 15 banks.”  It is estimated that over £1.5 billion looted from the Nigerian treasury is currently being kept in British banks.

The British have imposed no sanctions on these banks for laundering “lucrative” stolen money.  They are not even that enthusiastic about facilitating the return of the monies to Nigeria. Rowan Bosworth-Davies, a former Fraud Squad officer, is quoted as saying that a lot of people in the City of London are convinced that if proper legislation is enforced to facilitate the recovery and return of stolen money: “It will be bad for UK Plc.”In short, Nigerian money-laundering has been good for Western economies, funneling funds for them through back-doors deliberately opened to attract those funds.  Abacha’s loot did not only go to Britain.  It also went to banks in the United States, Germany and especially Switzerland, without any intervention from financial regulators in those countries.Financial regulatorsSome of these countries are now concerned that those same backdoors may be used to finance terrorist activities.  But, at the same time, they are mindful that concern for terrorism should not militate against their status as citadels of international finance, be it legal or illicit.The way forward: Money-laundering is a major problem for the Nigerian economy, especially because a lot of the money ends up abroad and those that return are used unproductively.  With a population of 170 million, Nigeria can hardly be described as a rich country.  If the modest earnings of the country over the years had remained in Nigeria, it would have made a considerable difference to the economy.  But looting has now reached epidemic proportions.  If millions were being stolen before, billions are being stolen now.  This portends a bleak economic future for Nigeria.It is naive to expect the Western nations to help us to police the theft of our patrimony.  In many ways, they benefit from our corruption. It is also not possible to expect the Nigerian government to police itself.  The government itself is the problem.  Nigerian politicians, both military and civilian, capture government with the intention to prepare for their personal futures while mortgaging Nigeria’s future.  Therefore, there is need for Nigerians ourselves, through public enlightenment processes and through insistence on accountability by Nigerian officialdom, to grab the bull by the horns.  These issues must be at the forefront of any democratic election campaign and those involved must be brought to the book. 


http://www.vanguardngr.com/2013/11/money-laundering-nigerias-future/

GFI Reports

http://www.gfintegrity.org/component/option,com_frontpage/Itemid,80/

Nigeria will never develop at this rate.
Nigeria is Cursed.