President Buhari Recovers $7billion NNPC Stolen Fund From JV Partners

Date: 07-09-2015 7:45 am (6 years ago) | Author: Mister Jay Wonder
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- at 7-09-2015 07:45 AM (6 years ago)
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The Nigerian National Petroleum Cooperation has commenced the process of recovering over $7bn (N1.4tn) in over-deducted tax benefits from joint venture partners on major capital projects.

It was learnt on Sunday that the corporation had also engaged an international accounting firm to ascertain the exact amount due to government on the Strategic Alliance Contracts entered by Nigerian Petroleum Development Company, where up to $2.46bn (N484.6bn) of government money would be recovered.

In a report submitted to President Muhammadu Buhari by its new management, detailing the corporation’s successes so far, the Group Managing Director of the NNPC, Dr. Ibe Kachikwu, stated that the firm had commenced its performance measurement and benchmarking.

He added that the corporation had started what it described as value for money review of the NNPC and the JV companies covering the period of 2008 to 2013.

The Senior Special Assistant to President Buhari on Media and Publicity, Mr. Garba Shehu, in a statement on Sunday, disclosed that the NNPC report indicated that the new measures might lead to further cost recovery for the firm.

The report, according to Shehu, also revealed that after an extensive investigation of the various toxic crude oil for refined products swap contracts, a total sum of $420m had so far been reconciled in favour of the NNPC and was now due for recovery from the legacy OPA/SWAP contracts.

“Out of the reconciled amount, the sum of $277m has been recovered in lieu of products and the recovery effort is still ongoing,” the statement added.

According to the report, the NNPC GMD stated that he was committed to the continued review of all existing contracts and addressing those that were not favourable to the corporation.

It noted that significant cost reductions were also expected to ensure that the corporation remained profitable in the prevailing low crude oil price regime.

The NNPC upstream operations are in joint partnerships with major oil companies. These multi-national exploration and production companies are operating predominantly in the onshore Niger Delta, coastal offshore areas and lately in the deep waters.

As with many other developing countries, the multinationals in Nigeria have been operating under what is called a concession system, with the NNPC being the concessionaire, while the companies are the operators.

The NNPC also is responsible for the management of the exploration bidding rounds for oil and gas. The multinational oil companies operate in partnership with the corporation under Production Sharing Contracts.

The statement from the Presidency on Sunday did not name the joint venture partners from which the corporation plans to get the funds.

Some of the international oil companies that are JV partners of the NNPC include Shell, Agip, Mobil, Chevron and Texaco.

Kachikwu, in the statement from the Presidency, said progress was being made towards bringing back the nation’s refineries to full production, noting that the management of the NNPC was working to actualise this before the end of 2015.

The report noted that if the refineries were completed as scheduled, it would help Nigeria save about $1bn worth of foreign exchange from fuel import substitution annually.

It said additional total savings of over $500m would be made from the petrochemical products of the Kaduna Refinery and Petrochemical Company annually.

The report also disclosed that efforts at repositioning the NNPC had started yielding result to the nation’s economy.

For instance, it stated that gas supply to the power plants had improved significantly from about 630 million to 861 million standard cubic feet per day, which had resulted in a more steady power supply.

“Indeed, the report revealed that gas supply for power and peak generation have in recent times reached a historical high of 876 million standard cubic feet per day and 4,782 megawatts, respectively,” the statement added.


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Posted: at 7-09-2015 07:45 AM (6 years ago) | Addicted Hero
- mary11 at 7-09-2015 07:53 AM (6 years ago)
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That's a welcome development

Posted: at 7-09-2015 07:53 AM (6 years ago) | Hero
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- dollypiper at 7-09-2015 07:54 AM (6 years ago)
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Haba !! Ole nla ni awon people yii o
Posted: at 7-09-2015 07:54 AM (6 years ago) | Gistmaniac
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- morgrawl231 at 7-09-2015 08:04 AM (6 years ago)
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billions of dollars?Huh??
oyinbo sef go hear dis figure begin jump out from window....
Posted: at 7-09-2015 08:04 AM (6 years ago) | Hero
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- mary11 at 7-09-2015 08:05 AM (6 years ago)
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I just hope the money will be use judiciously and not end up in someone's private account

Posted: at 7-09-2015 08:05 AM (6 years ago) | Hero
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- hackynoni111 at 7-09-2015 08:20 AM (6 years ago)
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nice one buhari
Posted: at 7-09-2015 08:20 AM (6 years ago) | Gistmaniac
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- ignis99 at 7-09-2015 08:43 AM (6 years ago)
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Well done but please prosecute the thief and let us know them.
Posted: at 7-09-2015 08:43 AM (6 years ago) | Gistmaniac
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- dareper at 7-09-2015 08:55 AM (6 years ago)
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Not a bad one. But let's pray the use it judiciously
Posted: at 7-09-2015 08:55 AM (6 years ago) | Hero
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- barackderay at 7-09-2015 08:55 AM (6 years ago)
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gud step
Posted: at 7-09-2015 08:55 AM (6 years ago) | Upcoming
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- dareper at 7-09-2015 08:56 AM (6 years ago)
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Quote from: mary11 on  7-09-2015 08:05 AM
I just hope the money will be use judiciously and not end up in someone's private account
. Gbam. Same with me
Posted: at 7-09-2015 08:56 AM (6 years ago) | Hero
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- gogoman at 7-09-2015 09:50 AM (6 years ago)
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ok baba we want more more!!
Posted: at 7-09-2015 09:50 AM (6 years ago) | Addicted Hero
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- PoliticxGuru at 7-09-2015 09:54 AM (6 years ago)
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Recoverying money everyday yet we don't see D money
Posted: at 7-09-2015 09:54 AM (6 years ago) | Hero
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- bayonel3 at 7-09-2015 10:06 AM (6 years ago)
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nice one... thumbs up PMB... but there should be a punishment

Posted: at 7-09-2015 10:06 AM (6 years ago) | Hero
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- winace at 7-09-2015 10:10 AM (6 years ago)
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Recovery stolen money is not d issue, wat will happen to d money is wat we will want to kn cus so many of dis money develop wings and fly to politicians house.
Posted: at 7-09-2015 10:10 AM (6 years ago) | Addicted Hero
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- emma4love3 at 7-09-2015 10:22 AM (6 years ago)
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jesus.......
Posted: at 7-09-2015 10:22 AM (6 years ago) | Hero
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- dollypiper at 7-09-2015 10:40 AM (6 years ago)
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At least the people that were criticizing Buhari will see somtyn good that he has done
Posted: at 7-09-2015 10:40 AM (6 years ago) | Gistmaniac
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- innocentbola at 7-09-2015 10:55 AM (6 years ago)
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Quote from: dollypiper on  7-09-2015 07:54 AM
Haba !! Ole nla ni awon people yii o

Ole n la gidi ni won jare...
Posted: at 7-09-2015 10:55 AM (6 years ago) | Gistmaniac
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- DJSNIPPER at 7-09-2015 10:56 AM (6 years ago)
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'LEAST CORRUPT'. PMB has been portrayed as a SAINT, and now the 'LEAST CORRUPT'. So, baba PMB is also CORRUPT. Small thief , big thief ,biggest thief.:- All na THIEF jare.
Thanks for your revelation. !!!.
Posted: at 7-09-2015 10:56 AM (6 years ago) | Gistmaniac
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- innocentbola at 7-09-2015 10:56 AM (6 years ago)
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Quote from: dollypiper on  7-09-2015 10:40 AM
At least the people that were criticizing Buhari will see somtyn good that he has done

Maybe now they at least support his tactics in tackling corruption a bit...
Posted: at 7-09-2015 10:56 AM (6 years ago) | Gistmaniac
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- innocentbola at 7-09-2015 10:57 AM (6 years ago)
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If this is true then well done our president...
Posted: at 7-09-2015 10:57 AM (6 years ago) | Gistmaniac
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