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INVESTIGATION: Nigeria earned $11.8bn from LNG; not $5.6bn claimed by PDP, Jonathan govt.

http://www.premiumtimesng.com/investigationspecial-reports/187929-investigation-nigeria-earned-11-8bn-from-lng-not-5-6bn-claimed-by-pdp-jonathan-govt.html


Nigeria earned at least $11.8 billion as dividends from the Nigerian Liquefied Natural Gas Company, and not $5.6 billion as claimed by former Nigerian governments led by the People’s Democratic Party, PREMIUM TIMES can confirm today.

The figure covers remittances due to have been paid to the Nigerian National Petroleum Corporation, NNPC, which holds 49 per cent shareholding in the NLNG, on behalf of Nigeria.

The remaining equities are held by Dutch firm, Shell, and its Italian counterpart, Eni/Agip.

After weeks of being rebuffed by different government agencies and the NLNG, over requests for the details of the remittances to Nigeria, PREMIUM TIMES arrived at the figure based on an analysis of payments to Agip, exclusively sourced by the paper.

The investigations showed that the Federal Government, through the NNPC, earned  $11.8 billion (about N2.5 trillion) as dividends from NLNG between 2004 and 2014.

Pioneer Status

The NLNG operated for at least 10 years under a controversial tax freedom holiday, called the pioneer status, which was granted by the Nigerian government. The incentive is usually given pioneer investors in new sectors of the economy to encourage more investments. In the case of NLNG, it was to trigger investment in gas.

Even with the tax relief, the government and other shareholders drew dividends from NLNG during the period, but the Nigerian authorities refused to provide details of how much was paid from 2004, under the Olusegun Obasanjo administration.

Controversy over the money started in June when the Nigerian Extractive Industry Transparency Initiative, NEITI, announced that it had uncovered that the NNPC failed to remit $11.6 billion paid by the NLNG.
NEITI urged President Muhammadu Buhari to recover the money.

In response, the NNPC spokesperson, Ohi Alegbe, said the matter had already been referred to the Inter-Ministerial Task Team (IMTT) for reconcilia­tion and resolution.
“At the last meeting of IMTT, it was resolved that the Minister of Petroleum, Chairman of NEITI, Execu­tive Secretary of NEITI and the Group Managing Direc­tor of NNPC should meet on the issue of NLNG dividends and report back to IMTT.

“Unfortunately, that meet­ing has not held. However, another meeting of IMTT is coming up next week and the issue will be taken up from there. NEITI, as a member of IMTT, is aware of the ongo­ing efforts to reconcile and resolve the issue of NLNG dividend remittance,” Mr. Alegbe said in a statement June 10.
He did not confirm or deny the amount in question.

By July, nearly a month later, the new federal government said it was disbursing $2.1 billion out of the NLNG funds to cash-strapped state governments to enable them clear backlogs of salaries owed workers.
The distribution was the first time in Nigeria’s history. It is the first time that funds from NLNG would be shared between the federal and state governments.

The ruling All Progressives Congress accused the previous PDP government of diverting past remittances, an allegation denied by the PDP.

APC spokesperson, Lai Mohammed, said over $4 billion of the NLNG money was outstanding.

In its response on July 12, the PDP said the party’s previous administrations –from Obasanjo to Goodluck Jonathan— deserved praise than rebuke for saving the LNG funds for the new government.

The party’s spokesperson, Olisa Metuh, said since NLNG had been on a “10-year tax haven” (he probably meant tax holiday) until 2014, “successive governments, right from President Olusegun Obasanjo never shared nor tampered with the cumulative dividends over the years”.

He said as of May 29, when Mr. Jonathan left office, the NLNG dividend stood at a cumulative $5.6billion and “not a single cent was ever taken from the funds”.

Denials

Repeated attempts by PREMIUM TIMES to confirm that figure were rebuffed by all the relevant government agencies.

The Corporate Communications manager of NLNG, Tony Okonedo, said releasing the details to PREMIUM TIMES would amount to a breach of confidentiality.

“Any details on the dividends we (NLNG) paid to government, the best place to go is NNPC that received it. For us, we are very clear on what we paid,” he said.

The NNPC told PREMIUM TIMES that the corporation did not have any information on dividend payments by NLNG.
“Your best bet for such information would be NLNG, which made the payment,” Mr. Alegbe said.

Neither the NLNG nor the NNPC was forthcoming with information on their annual report and financial statements.
The ministry of finance and office of the accountant general also refused to provide details.

Eni to the rescue

Regardless, PREMIUM TIMES sourced Eni’s financial filings, and confirmed that the company received billions of dollars as its due of dividend since 2004.

Eni owns 10.4 percent of  NLNG, while Nigeria holds 49 percent stake.

A review of Eni’s consolidated financial statements showed that the company received €2.319 billion ($2.5 billion) as total dividends billion between 2004 and 2014.
Eni received €72 million in 2004; €33 million in 2005, €56 million in 2006; and €131 million in 2007.
The company also earned €453 million in 2008; €101 million in 2009; €188 million in 2010; €483 million in 2011; €331 million for 2012; €224 million in 2013, and €247 million in 2014.

At 49 per cent, Nigeria’s dividend climbed to $11.8 billion. That is about N2.5 trillion.
The figure tallies with the $11.6 billion reported in the Nigerian Extractive Industries Transparency Initiative (NEITI) 2009-2012 Audit Report. The little difference might be as a result of fluctuating exchange rate.

Still, there is a discrepancy as previous reports show that the NLNG had announced in 2014 that it paid a total $13 billion as dividend to the government.

The firm’s managing director, Babs Omotowa, stated this when the company celebrated its 3,000th LNG export cargo in Abuja, in March.
He said Nigeria now owned $14 billion of assets on Bonny Island; $13 billion in dividends, another $11 billion earned in feed gas sales revenue, over $10 billion expenditure in local economy on goods, services and salaries of thousands of staff employed.


http://www.premiumtimesng.com/investigationspecial-reports/187929-investigation-nigeria-earned-11-8bn-from-lng-not-5-6bn-claimed-by-pdp-jonathan-govt.html

Everywhere stories of missing billions. Chai Nigerians have suffered.

doctokwus:
Wrong.
Better check your sources again.
GEJ went Thursday,obj Friday.
It only seemed GEJ went after obj because his was done secretively in the late night and only broke when SR exposed it.

Yes you are right. I have re-checked. The news of Obasanjo's visit actually broke before that of Jona.

That is small change na. If indeed that is the amount needed to shore up our generation amd transmission to 8,000 MW, then I can start rejoicing.

Only Kuku and former NSA can vomit this 15b sef.

Continue pls. Total overhaul is required!

This country sef. CBN has tightened it's noose against money laundering and afterwards everyone starts running helter skelter.

How come it's after CBN tight-fist hold on money laundering and convocation of a committee on fight against corruption that GEJ and his peace committee starts making moves to make PMB soft-pedal?

doctokwus:
Yeah.
I think when GEJ visited,sources in the presidency in the know of the wanton looting supervised by him and had knowledge of d crux of his meeting with PMB hurriedly reached out to OBJ and hurriedly scheduled a meeting BTW him and PMB, knowing OBJ's stand on the monumental fraud that happened under GEJ.
OBJ is likely to have given PMB assurances of support for his fight against corruption and had encouraged him that d path he is taking is d correct one.
Don't be surprised if OBJ had even told PMB that even if him(OBJ) is implicated in any fraud scandal he is ready to face justice.That's d kind of man I think obj is and d extent I think he would go just to ensure that the primitive,unprecedented looting that took place under GEJ does not go unpunished.

PMB met with OBJ before GEJ

erico2k2:
I think you are missing the point here, waht that guy said was right, there was no clear economical gains to a refinery to be sited in the North.The pry function of that refinery should be cracking not fractional distillation.Take the UK as case sturdy they have 13 refineries, non in London, why do you think they never built any refinery in London?

It is u that is missing the point. How can u say there is no clear economic gain in siting a refinery in the North? Well u have said it that the economic gain is not clear to u anyways.

So u want the entire North as vast as that to rely solely on transportation of products by tankers and pipes? And for your information, the Kaduna refinery is also designed to be able to refine other crude types different from only that of Nigeria.

So because London does not have a refinery now means a refinery in Kaduna is an error? That is an unreasonable analogy. What similarities does Kaduna and London have? Lagos get refinery?

hinwazaka:
The best developments in government were planned ten years to their launch. We should think in the long run not shortrun

I agree with u. But u can't jump from start to the 'long-run'. Lol

Before getting to that 'long-run', one will go through the 'short-run' and 'mid-run'.

That was why I said everything is still in order. Because these are the things that are supposed to be on ground before moving to the mid/long term plans.

longayink:
Go back to school and learn common factors that determine the location of industries.

Sugar, tomatoes, etc., are produced in the north. How many industries related with manufacture with those northern raw materials are located in your south of Nigeria?

You can as well suggest the relocation of present oil wells in the south to north of Nigeria in order to make north rich, in order demonstrate your south's selflessness.

It is u that needs to re-learn, do u think it is only one factor that is considered in siting an industry/factory??

Only one factor?! Only closeness to raw-material?? Cmon! Think outside d box. There are many factors to be considered.

You are right, closeness to raw-material is one of them. But, get this into ur head, it's just one of the factors.

This refinery is not purely and solely a capitalist oriented project. This is where u seem to be getting it wrong. At the long run, the socio-economic advantage that it give Nigeria from its operations, especially the North, will knock off the high cost of bringing raw-materials to it.

Some of u peeps fail to realise that a boat that sinks at one side will eventually sink the whole boat. As much as possible, socio-economic development must be given a spread in the country.

As regards your reference to raw-materials and industries. There are many food processing factories in Ogun and Lag, that relies on supply from the north.

longayink:
Let it be.

But never again can any government of Nigeria waste such huge sums of money to dig oil tunnel of about 1000 kilometres from the oil source in order to establish a refinery elsewhere.

Money spent on digging that tunnel was part of the wastes by northern military regimes that left Nigerians with poverty today.

So u don't see it reasonable to have a refinery up North to cater for the needs of the Northern region as regards petroleum products given the size of the country.


And also given that it will provide jobs for people in that area. And recall that there are already 3 refineries in the south.

Why are u people so selfish and callous?
I'm from the South, but with my interactions wt some Southern folks, I can say assuming it is southerners that have been in position of advantage since the creation of Nigeria and has ruled for a longer period of time by fiat, they would have totally subdued the Northerners and de-robe them of every iota of human dignity.

Infact u guys would have impoverish them more and make jest of their poverty and educational status.

Selfishness has even made some of u guys to lack sound reasoning.

There are many countries in the world without vast crude oil resources but who has many productive refineries.

hinwazaka:
The way this Refinery gimmick will blow up in the faces of the APC will not be monotonous. The TAM project was supposed to go hand in hand with a deregulation of the industry- privatisation of the sector leading to sales of the refineries. The refurbishing and maintenance was to raise it to a standard fit for auction. Experts of the oil sector have stated categorically that the refineries can not be sustained publicly in the long run and that they can not meet local demand. Even PMB has dissociated himself from it, but the APC spin machine refuses to let go. Well good luck with it, when things go south, don't do a 360

But we are still on the 'short-run'. Why not cool down to see how things unfold. The first task is to get all the refineries working at optimum capacity while ensuring that corruption in its operations is brought down to the barest minimum. After this has been achieved, then govt can unfold it's mid-term/long-term plan for the refineries.

Why not wish the govt success. It will be to the benefit of the entire nation if they record an astounding success in the mangt of the Petroleum sector.

ellabooz:
And Dasuki name was found missing? Well,it's a military affair and should remain a military affair.

I don't know why BOhari keep making noise about this coup as if he is Saint. Thesame card you dealt Shagari with was used for you.

Thesame man making noise about corruption was a minister when a whopping sum of 2 billion got missing.
Then 2 billion was equivalent to $2 billion .
Has he deemed it fit to explain to tell Nigerians where the money is?

We are no fools oh

Oga shut up. Where did u see PMB talking about his coup. The man has moved on, and God has even blessed him more sef by returning him to the Number 1 seat.

Firefire:
I laugh...

I trust u to masturbate over this. You are still typing your epistle abi? Cool

Let me use your space booking, to also book a space to reply to u per adventure u come up with your usual wailings

Punch in action. They have been showing that they indeed stand on an unbiased ground.

See them digging and exposing PMB's moves. They hammered PMB for not publicly declaring his assets and not completing the process and they are also intently monitoring Aisha's moves. They also added their voice to the delay in cabinet nomination.

Wailers will never see this, it is only when Punch features a story that does not appeal to them and their fake hero that they will go about vilifying this respectable paper that is actively involved in Nation building.

Now going back to the story, Aisha, you and your hubby should stop playing games. I know it will be difficult for u to just fade off in the background given your role and personality, but since you and you hubby agreed that the constitution does not recognise the office of the firstlady, then u need to take a chill for now. Nothing stops the president from sending a bill on this to the National Assembly to give it some legality.

It's high time we started doing things the right way, since everyone agrees that the office of the first lay is illegal, I think we should just draw up some specific roles for this position similar to what obtains for the office of the first lady of US and send it to the National Assembly for approval.

In that way, we can limit what they do and the extent of the role they play according to how we want it. That is my own opinion anyways. And moreso since the hype and security around d president (for male presidents) will always limit and restrict their wives from their usual business and engagements and it won't be nice to have an idle hand which d devil can use at Aso villa.

nigerianium:
Lagos is a dirty as the environment depicted in those photos.

Nigeria is dirty. There is no place that can boast to be free of some open dump site and some trashy sights in some corner.

Mogidi:
What do you plan to do with the info?
Have you been to an airport before, bros we're talking airports not motor packs, wetin concern agbero with overload?

You think everyone is a village headmaster like u??

ERODEDEAST:
This pix was once on NL some months back on the same Money laundering case na or the man's pix is being recycled I no understand oo

xreal:
I don't understand.

This picture has been on the internet for months now.
But the news is recent, what then is the link between the two.

That was the picture taken when the man was arrested by NDLEA. As the case was not related to narcotics, NDLEA has handed over the case to EFCC.

EFCC is now talking about the case and calling for the alleged owner to appear. The man in the pix was the person NDLEA arrested with the cash then. The man has alleged that the former NHIS Boss is the owner of the cash. I guess EFCC has been unable to apprehend the man hence the reason they are taken the issue public again.

In journalism when reporting a news they usually attach a pix related to the story. What other pix can they attach that will help people remember the case than the one taken when the courier man was earlier arrested.

anigold:
bros did you come to this world to be praise-singers to other people's success? Abi

When are you going to compete for the E-SYCOPHANT COMPETITION...

Who be this one

veekid:
e no new to me jor


u can deposit more than 10,000 contrary to what the op said, the machine is not even ATM, na deposit machine dem dey call am cos it can't dispense, it has been programmed only to deposit and not to dispense.


na only GTB get am sha

It is still called an ATM, which means Automated Teller Machine.

The name ATM does not mean it's only for dispensing. Deposit is also part of teller functions.

Mogidi:
The only money Bubu brought was to repair the NE.

Mogidi:


Wow!!!
Those guys were blessed with "Buhari brain" at birth, they thought it was a wonderful idea, this could only emanate from a Buharist.

Buharism: The art of thinking with one's a.s.s

I'm sure u see Buhari in your dreams and everywhere around u.

Your better don't kill yourself over Buhari. Whether u like it or not, the man has achieved what millions of Nigerians and infact 99% percent will never achieve in their life time by being a two time Leader of Nigeria. And even more than that, as he is going his Achiwill set Nigeria on the part of progress and he'll be forever remembered for that.

owobokiri:
You bursted what? That it is a lie that buhari is a tribalist? Or that he is 'fighting' a sectionally driven war against corruption? Where are the corrupt members of his party that fought for his emergence that are being arrested for corruption? You are such a huge joke. You are an advocate of probes, but you don't want it extended to regimes led by dafts from your clan or party. You don't have time to probe Obasanjo or Babangida or Yaradua , but you have the time to probe jonathans almost 6 years in office. Na so you smart reach?

You earlier claimed he was fighting an ethno-religious corruption drive. When I pointed to members of his tribe and religion also being targeted, u re now switching mouth and saying he is fighting corruption along party lines.

The point i'm driving at is your penchant for ethno-religious sentiments. If your earlier stance was centred only on party line, I would have left u to urself. I took up the line u were trying to tilt it towards ethnicity and religion. And I gave u examples that counters this silly premise.

soloroyality:
Untill u get it into skull that hausa/yoruba has been creating economic blockage since 1967 by not allow any economic development in the south south/ south east region,


#biafra is the only solution for nw

we have calabar seaport and onii seaport but this guys don't want to development.

Chaii..... What a shame?

Why must u always attribute the failings in your area to some imaginary enemy? GEJ was President for almost 6 yrs, Akpabio and others were his closest confidants. How come he or them couldn't make him make those ports viable?

Must u always blame others?

How come Akpabio and GEJ could not achieve the much needed and viable Ibaka sea port? Is it the Yorubas that caused tht too? Infact, u re attributing too much to this Yorubas sef.

PMB! Slowly and steadily turning Nigeria around.

barcanista:
Well, haven read the Press Statement from NLNG denying that they had no hand or interest in the dock project, I have to say that our people should sheath their swords and we should really investigate whether or not NLNG has a hand.

On the other hand, why not call all your influential sons and daughters to a critical soul searching forum and mandate them to woo such a project to the SS which will rival this one in Lagos.

Xetima:
Good. After Samsung and Hyundai finish the project, they can use it for coconut oil like someone mentioned.

Of course, tht is also a business opportunity. So many factories in the Ogun state axis are into the manufacture of coconut oil. The ships that will be used for such export if their production hits the rooftops can also avail themselves of this ship servicing facility.

Shipping business is not all about shipping oil and gas. Before shipment of petroleum products started, shipping commodities has been thriving and still thriving.

owobokiri:
Let's fight corruption without fear or favour. Let's start from either 1966, or 1970, or 1999. That makes sense. Starting and ending with Jonathan is nothing but a witch-hunt. You can NEVER discourage corruption that way. Uptill now, I can't understand why we have to spare Obasanjo and Yaraduas administrations while hounding jonathan.

I thought u were ascribing the moves to ethnic and religious sentiments earlier?? But now that I have burst your ethnic/religious bubble with raw facts u re towing another line.

Listen, fighting corruption that has been carried out donkey years is not feasible, it will only distract and much funds may not be recovered.

Probe of GEJ'S govt may still lead to the recovery of large sums of money, as the stealing has just been recently done. And i'm actively in support such recovery. The probe of GEJ'S govt is aimed primarily at recovery of stolen loot as the country is presently broke.

Na Jonathan no wetin do am wey him no recover the money Obasanjo steal. Na Obasanjo no know wetin dey do am wey him no recover Abdusalam loot. Maybe the country was not so broke then, but at the moment, recovery of stolen billions is a priority. Get that into ur head. If u like call it witch-hunt, that does not concern the majority that supported PMB.

Buhari promised to fight corruption and recover stolen loot and that was the primary reason he was voted for. And we the majority that voted for him will give him the needed physical and moral support to achieve this.

From now on, let every incoming govt probe the previous govt. The govt coming after Buhari should also probe Buhari forensically. It should continue like tht.

sarris:
Can u hear yourself talk,d project its not theirs so who its financing d project ?mr literate.

You are the illiterate here. Why not do the research yourself. To read and get information is so hard for your likes and u'll go about calling people names.

Let me help u with this press statement from NLNG.

Just in from NLNG:
Go to the link to read the PUBLIC STATEMENT ON DRY DOCK: NLNG NOT OWNER OF DRY DOCK
http://www.nigerialng.com/Media-Center/Pages/Press-Release.aspx

PUBLIC STATEMENT
Nigeria LNG is not owner of Dry Dock

The attention of Nigeria LNG Limited (NLNG) has been drawn to recent media reports on the proposed Badagry Dry Dock Project which purport that Nigeria LNG is the owner of the project.

This is not true as Nigeria LNG is NOT the owner and is not investing in the building of any dry dock.

Nigeria LNG has a singular business focus, namely processing and exporting LNG. It has no interest in investing in a dry dock anywhere in the world.

The owner of the proposed dry dock in Badagry is a consortium of other Nigerian companies under the name of Badagry Ship Repair and Maritime Engineering Company (BSMEC) and which NLNG is NOT a part of.

NLNG’s only interest was and still remains, encouraging investors to consider building dry docks in the country to save the nation’s foreign exchange and save local ship owners, like ourselves, the trouble of having to go overseas for dry dock services.

Nigeria LNG would thus be pleased to see more dry dock projects emerge in different parts of the country, but will not be investing in any. It is thus fair to add that not being an investor in dry dock, NLNG cannot dictate to investors where to site their projects.

Nigeria LNG therefore appeals to those who are issuing threats based on wrong information, to review their position in the light of this clarification. Besides, threats can only discourage other investors from coming to the region.

Please be assured that NLNG remains a good and valuable corporate citizen helping to build a better Nigeria.

Thank you for your kind attention.

Signed
Dr Kudo Eresia-Eke
General Manager (External Relations),
For NLNG.

owobokiri:
The much vaunted "war aganst corruption" has developed tribal marks and sectional fangs. You are no more corrupt because you corruptly stole. Mba! . . In these buhari days, you are are corrupt only when they say you are corrupt or otherwise. And so Amaechi and Tinubu are saints while Jonathan and Deizianni are evils. . Essentially, there is no more a general yardstick for measuring corruption. Ethnic and religeous sentiments are holding sway. . The mutants here call this "chanji". .

Ethnic and religious sentiments u say. Is Amaechi that u claimed is not being investigated now an Hausa man or he is a muslim. Is the former National Security Adviser, Sambo, Sule Lamido and others now Easterners??

The sanitation has begun

HopeAtHand:
You want to make me belief GEJ would ask that Jadesinmi relocate to Bayelsa without Bayelsa being part of the original plan..does it work that way?

NDeltans didn't wake up and suddenly become hostile.They have been cheated and neglected over a period of time and that breeded the hostility..They should be made to believe they are a part of the Nigerian project. Their fears and frustrations should be addressed.And this seemingly unjust relocation isnt the perfect way to go about it.

I know u'll find it hard to believe, that was why i asked u to do an independent enquiry.

I agree that the SS has not been treated fair. But there are better ways of drawing investments than resort to violence. In fact, the threat of violence will even drive investments away from the region.

And this seemingly unjust relocation isnt the perfect way to go about it.

Pls get your facts right, there is no relocation. People re just protesting that they should site the project in their side.