Ade Adesomoju

Abuja

The Supreme Court on Wednesday ordered the Federal Government to immediately commence steps to recover all revenues lost to oil exploring and exploiting companies due to wrong profit sharing formula termed as the Production Sharing Contracts since August 2003.

A seven-man panel of the apex court led by the Chief Justice of Nigeria, Justice Walter Onnoghen, made the order in a consent judgment in a suit filed by three states, Rivers, Bayelsa and Akwa Ibom, against the Federal Government in 2016.



The states, through their various Attorneys General and the Federal Government, through the Attorney General of the Federation, had on April 6, 2018, filed the terms of settlement which the apex court adopted as its judgment on Wednesday.

The terms of the settlement were signed by the Attorneys General of the three states, Emmanuel Aguma (SAN) (for Rivers), Kemasuode Wogu (for Bayelsa) and Uwemedimo Nwoko (for Akwa Ibom) as well as the lead counsel for the AGF, Mr Lucius Nwosu.

The Permanent Secretary in the Federal Ministry of Justice, Mr Dayo Apata, signed as the witness.

By virtue of the agreement between the three states and the Federal Government leading to the consent judgment of the apex court, the AGF, Mr Abubakar Malami (SAN), is to work with the three states to “immediately set up a body and the necessary mechanism for recovery” of all the lost revenue since August 2003.

The mechanism is to be put in place by the AGF within 90 days.

The three states which had jointly filed the suit marked SC.964/2016, in the names of their respective Attorneys General, had contended that the Federal Government had been short-changed on its supposed shares of estimated earnings of $1,149,750,000,000, under the Production Sharing Contracts for the period between 2003 and 2015.

According to them, the huge loss suffered by the Federal Government is due to the failure of the Minister of Petroleum Resources for over 15 years to kick-start the re-adjustment of the sharing formula (the PSC) of 60 per cent share of oil profits to the Federal Government and 40 per cent to the oil companies.

They argued that the Federal Government had suffered huge losses under the PSC because of non-compliance with Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act which was said to have come into effect since January 1, 1993.

The plaintiffs faulted Section 8(1)(f) of the Production Sharing Contracts between the Federal Government and the oil companies, which makes provision for the 60 to 40 per cent sharing agreement.

They stated that, under the Deep Offshore and Inland Basin Production Sharing Contracts Act, there ought to be an upward re-adjustment of Federal Government’s share of oil profit “in a manner as to become economically beneficial to the Federal Government” whenever the price of crude oil exceeded $20 per barrel.

The plaintiffs, therefore, argued that the PSC which provides for the current sharing formula between the Federal Government and the oil companies could no longer be valid because the oil prices had since overshot the $20 per barrel.

https://punchng.com/scourt-orders-fg-to-recover-18-year-lost-revenue-from-oil-giants/

Oil money belongs to every Nigerian. Kudos to Supreme Court

Aa Supreme Court orders the FG to recover all lost revenues, I order my destiny to recover all my lost glories.


It's my birthday guys

Happy birthday to me

Happiness comes more easily when you feel good about yourself without feeling the need for anyone else's approval.

up

Obasanjo is in soup.....


Atiku+late =Atiku is late....


PMB is d man I know....

The entity called Nigeria is working under the distinguished president.

#Never again shall we allow our collective resources be looted again by the Poverty Develop.ment Party

ok

I have been involved in the oil sector in the past and I can tell you that Nigeria government doesn't know exactly how much oil is exploited by these oil companies. It is the number of barrels they tell NNPC that we know. The oil companies are richer than Nigeria itself.

U MEAN ONE TRILLION US DOLLAS, ONE HUNDRED AND FORTY NINE BILLION US DOLLAS AND SEVEN HUNDRED AND FIFTY MILLION US DOLLAS.
$1,149,750,000,000,
GOD WILL PUNISH ALL THOSE WHO ARGUED WITH ME BILL GATE AND CO WERE INDIVIDUALLY RICHER THAN NIGERIA. MEANWHILE BUHARIST N ATIKULATORS UNA DOOOOI OOOOO.

PDP
Jonathan try gan ni o
o ma se o

sweerychick:
up

NEPA

obajoey:
PDP

It still happens now.

OkaNaUbe:


It still happens now.

Yes bro.
Same set of people.

The three states which had jointly filed the suit marked SC.964/2016, in the names of their respective Attorneys General, had contended that the Federal Government had been short-changed on its supposed shares of estimated earnings of $1,149,750,000,000, under the Production Sharing Contracts for the period between 2003 and 2015.

According to them, the huge loss suffered by the Federal Government is due to the failure of the Minister of Petroleum Resources for over 15 years to kick-start the re-adjustment of the sharing formula (the PSC) of 60 per cent share of oil profits to the Federal Government and 40 per cent to the oil companies.



The states, through their various Attorneys General and the Federal Government, through the Attorney General of the Federation, had on April 6, 2018, filed the terms of settlement which the apex court adopted as its judgment on Wednesday.

This is another wonderful development. The fact that Federal government also supported the states to get this judgement is very significant. Those who managed the petroleum industry between 2003 and 2015 should cover their faces in shame. I am very sure they knew about this law and the huge revenue that the country was losing but decided to look away after collecting huge bribes. Same set of people are attempting to come back again to continue the looting of our common patrimony. We say no to them.

One trillion US dollar

This is nothing but big time fraud/incompetence of people managing NNPC / Nigeria finance for those period.

I think all of them need to be investigated and punishment serve if anyone is found to have compromised.

Kudos to Rivers, Bayelsa and Akwa Ibom states for intistuting the case and seeing it through.

PDP will sure oppose this move. They see nothing good in the current administration

greatcrown:
One trillion US dollar

This is nothing but big time fraud/incompetence of people managing NNPC / Nigeria finance for those period.

I think all of them need to be investigated and punishment serve if anyone is found to have compromised.

Kudos to Rivers, Bayelsa and Akwa Ibom states for intistuting the case and seeing it through.

including the federal government

I am waiting for mofos that will call this witch hunt against OBJ.....OBJ-GEJ must vomit something

This government is too lacklustre.

greatcrown:
One trillion US dollar

This is nothing but big time fraud/incompetence of people managing NNPC / Nigeria finance for those period.

I think all of them need to be investigated and punishment serve if anyone is found to have compromised.

Kudos to Rivers, Bayelsa and Akwa Ibom states for intistuting the case and seeing it through.

I don't believe the amount is correct.

OkaNaUbe:


I have been involved in the oil sector in the past and I can tell you that Nigeria government doesn't know exactly how much oil is exploited by these oil companies. It is the number of barrels they tell NNPC that we know. The oil companies are richer than Nigeria itself.

It is not the number they tell.

Flow metres give you the estimate.

Yes, government staff can compromise the figures but to act as if everyone else is a dunce but you, says something about you.

This is the same Buhari some fools are calling failure

Good

Up Baba

seunmsg:


This is another wonderful development. The fact that Federal government also supported the states to get this judgement is very significant. Those who managed the petroleum industry between 2003 and 2015 should cover their faces in shame. I am very sure they knew about this law and the huge revenue that the country was looking but decided to look away after collecting huge bribes. Same set of people are attempting to come back again to continue the looting of our common patrimony. We say no to them.

but the 3 states are PDP state

Atikulation of fraudsters will not like this. Sai Buhari!

We all know this order will not be complied with. Back to Daura

sacx:
We all know this order will not be complied with. Back to Daura

Read before you type rubbish

The three states which had jointly filed the suit marked SC.964/2016, in the names of their respective Attorneys General, had contended that the Federal Government had been short-changed on its supposed shares of estimated earnings of $1,149,750,000,000, under the Production Sharing Contracts for the period between 2003 and 2015.

Those were the PDP years of looting and thievery.

This FG is giving them 100% support to recover ALL.