The committee urged the Federal Government to remove fuel subsidy. The committee, headed by Senator Ahmed Makarfi, since was never any unremitted $49.8billion as alleged by the suspended Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi. It stated that the Central Bank of Nigeria, NNPC, Ministries of Finance and Petroleum agreed that the NNPC should account for $20billion. These assertions were contained in the report of the committee, which was laid before the Senate yesterday. The committee noted that the sum of $218.069 million remains unremitted, being Federation Account share from the Third Party Financing arrangement.
It said that royalties and taxes amounting to $447.827million, being Federation Account share from the $6.815billion liftings by NNPC on behalf of NPDC, remain unremitted. The report urged the Senate to note, among others, that the “total crude oil liftings January to July 2013 was $67 billion and not $65billion as the CBN Governor had presented. There was never any unremitted $49.8billion. All the agencies: CBN, NNPC, Ministry of Finance and Ministry of Petroleum Resources had agreed after reconciliation meeting that $47billion out of the $67billion had been credited to the Federation Account. Amount to be accounted for therefore was $20billion. The sum of $5.254billion PMS subsidy certified by PPPRA, part of the $20billion to be accounted for, was adequately covered by the Appropriation Acts 2012 and 2013.
“The sum of $3,512billion DPK subsidy certified by PPPRA for the period January 2012 – July 2013, being part of the $20billion to be accounted for, was not appropriated for by the National Assembly. The total sum certified by PPPRA for Kerosene DPK) subsidy not appropriated for by the National Assembly was N353.370billion ($2.148billion) for 2013 respectively, making total for the two years N685.91billion ($4.430billion).”
The committee report only covers accounting for $67billion crude oil revenue between January 2012- July 2013. “The Committee together with Appropriations Committee will continue its investigation on causes of shortfall in revenues, which covers issues such as SWAP, Strategic Alliance etc, as relates to the petroleum industry as par Senate Resolution S/RES/007/03/13.” The committee recommended among others that the Senate should accept the subsidy deducted by NNPC from January 2012 – July 2013 of $5.254billion (N823,803billion) since it was certified by PPPRA and appropriated by National Assembly.
“This is without prejudice to the outcome of the Forensic Audit conducted by the Office of the Auditor-General for the Federation and Pricewaterkhouse Coopers Limited (PWC),” the report added. It said further that: “whereas it may be good policy to encourage indigenous players by giving them greater participation, however continuing transfer of Federation OMLs to NPDC who in turn transfer same to Third Parties with lots of tax and other revenue concessions will deprive the federation of vital income. Therefore, all such transactions should be conducted in a transparent and competitive manner and devoid of revenue concessions. NNPC to refund and remit to the Federation Account the sum of $262million being expenses it could not satisfactorily defend in respect of Holding Strategic Stock Reserve; Pipeline Maintenance and Management Cost; and Capital Expenditure. There is the need for the subsidy regime to be totally discontinued with. All stakeholders should be consulted and carried along as much as possible before abolishing the subsidy.
“Further legislative action by the Senate should be taken after receipt of the forensic check/audit currently being undertaken at NNPC by the Auditor-General of the Federation and PWC. The NNPC should strictly adhere to international best practices in keeping records. NNPC should not control the revenue account of NPDC in order not to undermine its separate legal status and make accountability more difficult. That PPPRA should henceforth not certify subsidy payments/deductions when there is no appropriation for such.
“NNPC should always ensure due process and diligence in their operations. The Senate also mandates the Committed to follow up and receive the forensic audit/checks reports from the Auditor-General for the Federation and PWC, study same and report back to Senate.”
The committee noted that after a careful study of all submissions, it found: “That all parties, i.e. CBN, NNPC, Ministry of Finance and Ministry of Petroleum Resources had resolved through reconciliation undertaken by them that $47billion had been received into the Federation Account out of the total oil lifting valued at $67billion between January 2012 and July 2013. That on the remaining $20billion to be reconciled, the committee’s findings are as follows:
“The amount deducted /withheld/expended by NNPC on fuel subsidy between January 2012 to July 2013 was $5.254billion (N823.802billion). This was certified by PPPRA and the National Assembly has appropriated funds in 2012 and 2013 fuel subsidy in the sums of N888.101 billion ($5.737billion) and $971.274 billion ($6.274billion respectively. The amount expended on subsidy on kerosene (DPK) between January to July 2013 was $3.512billion (N543.890billion). This was certified by PPPRA. This was not appropriated for by the National Assembly in both 2012 and 2013 Appropriation Acts.
“The subsidy deduction in the sum of N180billion ($1.2billion) by NNPC in 2012 bug relating to fourth quarter 2011 was certified by PPPRA. The CBN position was that this deduction needed PPPRA certification. PPPRA verification alluded to on the NNPC subsidy claims are in practice book keeping verification rather than physical verification of products and claims.” The committee said it also found that on Third Part Financing liftings by NNPC which CBN put at $2billion and called for more explanations, as follows: “That the actual value of Third Party Financing lifting was $2,430,750,973. That the amount confirmed by the Accountant-General as having been remitted into the Federation Account between January, 2012 and July, 2013 was $1,370,172,650.36. That the share belonging to Mobile Producing Nigeria Limited in Third Party Financing arrangement with NNPC confirmed by them orally and in writing was $848,687,581.
“That the amount confirmed by the Accountant-General of the Federation as having been remitted into the Federation Account in December, 2013 which is outside the period January 2012 – July 2013 was $300,000,000. Therefore, the sum of $218,069,354 remains outstanding or unremitted by NNPC which it explained was in escrow account and will be remitted when it matures.” On the $6billion liftings by NNPC on behalf of NPDC, which CBN observed that part of the revenue belongs to the Federation Account, the committee said it found as follows:
“NPDC strategic alliance are within the laws of the Federation as submitted by the Attorney-General for the Federation and Minister of Justice. Total liftings during the period in question was $6,815,188,626. Share of revenue to go to the Federation A. Lung was $2,175,635,436. Amount of Petroleum Profit Tax (PPT) confirmed received by Federal Inland Revenue Service (FIRS) from the NPDC and remitted to the Federation Account was $863,000,000. Amount of Royalty confirmed received by Department of Petroleum Resources (DPR) from NPDC and remitted to the Federation Account was $864,817,552. Royalties and Taxes not remitted to the Federation Account by NPDC within the period under consideration was $447,817,884.”
On other expenses and crude losses, which the Committee appointed Independent Professional Accountants to audit, the committee said it found as follows: “Crude and refined oil losses were certified by Committee Consultants as $0.809billion against the $0.760 reported by NNPC. Pipeline surveillance cost increased from $2.23million in 2012 to $11.15million in 2013 without corresponding decrease in pipeline oil losses. Actual PPMC’s Staff Salaries and upfront benefit claimed in NNPC submission were overstated by $7.58million and $29.35million for the 2012 and 2013 respectively.”
The committee gave the amount expended above budgeted or not budgeted for at all in respect of PMS and DPK in 2012 and 2013 as follows: “2012 PMS = N90.693billion ($585million)
2013 PMS = “Over expenditure expected since certification of Aug-Dec 2013 was only an interim one. 2012 Kerosene (Expended but not budgeted) N353,370,145,245.07 ($2.282billion),
2013 kerosene (amount expended but not budgeted) N332,539,367,830.95 ($2.148billion).” In respect of a motion moved by Senator Babajide Omoworare (Osun East) that N700million was expended illegally on Kerosene subsidy daily, the committee said it found based on PPPRA certification that: “In year 2012 amount expended was N353.370billion which gives N965.49million daily; and
“In year 2013 (interim) amount expended was N332.539 billion which gives N908.578 million daily.”
- The Punch

![Nigerian Army Generals Pocketed $43m Meant For Peacekeepers, Petition Says
“It is on record and verifiable that over 3,950 troops who participated in Peace Support Operations in Liberia and Sudan between 2013 to 2014 are still been [owed] various months of allowances amounting to over $43.23m US Dollars which is equivalent to N6,919,168,000:00 Billion Nigerian Naira to date,” the petition said.
by Sahara Reporters Jul 11, 2014
1.3K 117 132
Former Chief of Army Staff, Lieutenant General OA Ihejirika named as aone of the culprits SaharaReporters has obtained a powerful but anonymous petition written by concerned Nigerian soldiers who claim that the Nigerian Army owes its men and women who have served in various United Nations peacekeeping operations over $43 million.
The document also carpets the United Nations, which it alleges may have collaborated with cheating Nigerian army chiefs to divert the allowances of the peacekeepers into their own pockets.
“It is on record and verifiable that over 3,950 troops who participated in Peace Support Operations in Liberia and Sudan between 2013 to 2014 are still been [owed] various months of allowances amounting to over $43.23m US Dollars which is equivalent to N6,919,168,000:00 Billion Nigerian Naira to date,” the petition said.
The petition warned that in view of the present security situation in the country, 3,950 soldiers being owed such a staggering amount could revolt “and this will not be good for our country.”
It also names the “principal actors” involved in the matter to be:
Former Chief of Army Staff (Retired), Lieutenant General OA Ihejirika;
Present Chief of Army Staff (COAS), Lieutenant General KTJ Minimah;
Director of Army Finance and Administration (DAFA), Major General AI Muraina;
Former Director of Army Training and Operations (AHQ DATOPS), Major General JO Nwaogbo; and
Present Director of Army Training and Operations (AHQ DATOPS), Major General JAH Ewansiha.
“It is obvious that lies and deceits have become a tradition among Nigeria Army generals,” the petition says. “They always devise ways to sweep matters that [touch] them under the carpets with cover ups.”
On the world body, the document says, “If the only hope of mankind today the United Nations can collaborate with Nigeria to divert the money meant for payment of Nigerian soldiers who participated in Peace Keeping Operations in Liberia and Sudan, it will be right for one to say that the entire universe is doomed and heading towards destruction.”
Full text of the petition:
NIGERIA ARMY AUTHORITIES EMBEZZLE $43.23M US DOLLARS ALLOWANCES OF NIGERIAN SOLDIERS IN PEACE KEEPING OPERATIONS
If the only hope of mankind today the United Nations can collaborate with Nigeria to divert the money meant for payment of Nigerian soldiers who participated in Peace Keeping Operations in Liberia and Sudan, it will be right for one to say that the entire universe is doomed and heading towards destruction.
The United Nations is known for standard, transparency, justice, fair play and equality but, it is worrisome how this honorable body or few members in this body have targeted Nigeria and descended too low to collaborate with some born-cheat generals in the Nigerian Army to divert soldiers Operation Allowances into their private pockets.
It is on record and verifiable that over 3,950 troops who participated in Peace Support Operations in Liberia and Sudan between 2013 to 2014 are still been owned various months of allowances amounting to over $43.23m US Dollar which is equivalent to N6,919,168,000:00 Billion Nigerian Naira to date. The 800 soldiers from 223 Armour Battalion Zuru, Kebbi State, that served as Nigerian contingent NIBATT 40 at Nyala Super Camp in Sudan Darfur region between June to December 2013 are still being owned 2 months allowance while the 800 soldiers of 15 Field Engineering Regiment Ijebu Ode that served as NIBATT 33 at the Central Monrovia in Liberia between September 2013 to March 2014 are being owned their operation allowance for over 7 months of their return. The 800 soldiers from 322 Artillery Regiment in Benin City that served 10 months in Labado Sudan as NIBATT 41 returned to Nigeria in June 2014 only to meet 1 month operation allowance in their domiciliary account while the balance of 9 months disappear as their counterpart with no one to give account of it till date.
It was also gathered through an authentic sources that the domiciliary account of the 800 soldiers of 342 Artillery Regiment Obinze Imo State currently serving in Nyala Super Camp South Sudan as NIBATT 43 for 8 months now are red as no dime have been deposited into their account. This also applies to the 750 soldiers of 311 Artillery Regiment Kontangora, Niger State currently serving as NIBATT 34 in Liberia.
When on 11 February 2014, the Nigerian National dailies Punch newspaper published this issue, with a view to finding a solution to this ugly trend, the dubious Nigeria Army through its Public Relations Officer. Brig Gen Olajide Olaleye came up with their lies and deceitful propaganda that “it was not true that the Nigerian Army was owning soldiers arrears of operations allowances”, and to cover up their secret deals within 48 hours they paid in 4 months operation allowance into NIBATT 40 troops domiciliary account remaining 2 months which are yet to be paid till date after 8 months of their return from the operation area.
The questions that remain unanswered are:
1. Why is United Nations owing only Nigerian Peace Keepers after sacrificing their lives to bring peace to the troubled regions?
2. If the United Nations have paid the Nigerian military authorities or the Federal Government, where are the monies, who is with it?
3. Are the authorities concerned waiting for similar Akure incident to occur before they address the issue?
4. Is the Army Chief Lt Gen KTJ Minimah not aware that such monies are been owned to his troops by UN or is released by UN and hijacked by his generals leaving these soldiers who have painstakingly and diligently served this nation in foreign land to suffer endless hopes for their overdue allowances?
5. Why should the Army Director of Defence Information, Major General Chris Olukolade in his response to the Punch publication of 11 February, 2014 deceive the soldiers and lie to the nation that “the money is not missing and that the authority is working round the clock to secure the funds from the appropriate quarters and relevant agencies sponsors of the mission”.
6. For over 8 months Army authorities have been working round the clock to secure money that we well know that United Nations MOU with troops contributing countries states that UN pays at the inception of each tenure.
7. If this is not one of the Nigerian Army general’s lies and deceits, let the Director of Defence Information, Major General Chris Olukolade tell us and Nigerians who are the appropriate quarters and relevant agencies sponsors of the mission that are hijacking these soldiers allowances as he claims?. Is it UN, the Presidency or COAS?.
8. If the UN is owing Nigeria for over 8 months now as claimed by our generals, where are they getting the $100 and $200 US Dollars respectively that they pay to each troops in Sudan and Liberia in operation area monthly as maintenance allowances?
Considering the present security situation in the country, this is a bad omen. 3,950 soldiers being owned such a staggering amount could revolt and this will not be good for our country. Let us use Akure incident as a lesson and do something before this issue gets out of hand.
It is obvious that lies and deceits have become a tradition among Nigeria Army generals. They always devise ways to sweep matters that touches them under the carpets with cover ups. Here under are the names of the various units that have served either in Sudan or Liberia with the Nigeria banks where they opened their domiciliary account for anybody who wish to verify the authenticity of this report.
NAMES OF UNITS, THEIR NIBATT AND BANK USED FOR DOMICILIARY ACCOUNT IN NIGERIA FOR COMFIRMATION
1. 15 FER IJEBU ODE - NIBATT 33 - ECO BANK
2. 311 Arty Regt Kontongora - NIBATT 34 - DIAMOND BANK
3. 223 Armour Battalion Zuru - NIBATT 40 - ECO BANK
4. 322 Arty Regt Benin - NIBATT 41 - ECO BANK
5. 41 Engr Div Kaduna - NIBATT 42 - DIAMOND BANK
6. 342 Arty Regt Owerri - NIBATT 43 - KEYSTONE BANK
THE PRINCIPAL ACTORS IN THIS MATTER ARE:
1. Former Chief of Army Staff (Retired) Lieutenant General OA Ihejirika.
2. Present Chief of Army Staff (COAS) Lieutenant General KTJ Minimah.
3. Director of Army Finance and Administration (DAFA) Major General AI Muraina.
3. Former Director of Army Training and Operations (AHQ DATOPS) Major General JO Nwaogbo.
4. Present Director of Army Training and Operations (AHQ DATOPS) Major General JAH Ewansiha.
By SaharaReporters.](https://fbcdn-sphotos-a-a.akamaihd.net/hphotos-ak-xpa1/t1.0-9/p240x240/10410219_975028995856711_2333815131911481538_n.jpg)