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Reps Question NNPC GMD Melee Kyari, Allege $5bn Not Remitted In 14 Years




The House of Representatives ad hoc committee set up to investigate stolen crude oil valued at N5tn on Wednesday grilled the Group Managing Director of the Nigerian National Petroleum Corporation, Melee Kyari.

At the investigative hearing, which our correspondent obtained its video footage on Thursday, the management of NNPC and the lawmakers, however, disagreed over the alleged non-remittance of $5bn accrued from crude sales between 2005 and 2019.

Chairman of the committee, Peter Akpatason, noted the irregularities in the various documents submitted by NNPC and other agencies.

He stated that the panel was set up to identify and proffer lasting solutions to oil theft and revenue loss.

Akpatason decried that the illicit act ‘has lasted too long, saying, “As responsible citizens, it is our collective responsibility to see to the end of the economic crisis in the oil sector.”

The Deputy Majority Leader of the House expressed concern that the stakeholders failed to provide relevant documents that would aid the investigation by the lawmakers.

Akpatason said, “It is, however, very worrisome that the ad hoc committee requested for some specific information, particularly the certified true copies of oil royalty, PPT, the entitlement of proceeds of production sharing contracts for 2005 and 2019; and after a long delay, the submission received works from 2003 to 2009, leaving out the chunk of the years that we are supposed to be looking at.

“I will like to bring to notice that in the cause of this investigation, the ad hoc committee, through forensic analysis of whatsoever submission from various stakeholders in the sector, observed huge discrepancies in the submissions made by various agencies of government, particularly DPR and NNPC.

“These variances range from figures on offshore processing of crude oil, DSDP swap, processed crude oil by the three refineries, conversion of crude oil to export, FIRS borrowing crude oil to …non-remittance of funds amounting to about $5bn into the Federation Account.”

The lawmaker stated that apart from the unaccounted crude oil, the committee also observed that there were other sources of oil losses that directly affected revenue generation, especially relating to joint ventures and under-lifting of the nation’s share of crude oil.

Responding, Kyari argued that between 2015 and 2021, “there is a significant decline in the losses that we suffer in terms of other things or vandals in the country.”

The GMD of NNPC attributed the success to concerted efforts by industry stakeholders, the corporation and NNPC and security agencies ‘to curtail the excesses, but they still do occur’.

Kyari stated that the NNPC was willing to share relevant data on the corporation’s transactions with the panel, including those that had yet to be submitted.

The NNPC boss, “There are always discrepancies in the data between NNPC and other agencies of government, even between us and our partners.”

According to him, it is not surprising as the typical practice in the industry is that the point of recording, audit, and the timing of recording always determine the numbers. “It is a very mobile environment because the data you have today is not the same thing tomorrow,” he noted.

Kyari also noted that there were a number of forensic audits that had been done over the years which always ended up reconciling to extreme margin and non-existence.


BREAKING: Ex-Minister Aisha Al-Hassan ‘Mama Taraba’ Is Dead




Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead.

She died at 61.

Alhassan reportedly died from an unknown illness.

She was a member of the All Progressives Congress (APC) before defecting to the United Democratic Party (UDP) in September 2018.

She decamped after resigning from the Buhari administration.

Details Later…

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Oil License: Reps Issue 14 Days Ultimatum To NNPC, Threatens To Summon Buhari




The House of Representatives Committee on Petroleum (Upstream) has given the Nigerian National Petroleum Corporation (NNPC) 14 days ultimatum to appear before it. Should the NNPC fail to appear, the committee said, it will summon the Minister of Petroleum, President Muhammadu Buhari.

According to Premium Times, The committee is investigating the revocation and reversal order on the operating licenses of OML 123, 124, 126, and 137.

The oil assets have been the subject of dispute between Chinese-owned oil companies and the federal government. The dispute led to the revocation and restoration of the mining licenses by the Buhari administration.

On Thursday, NNPC, Addax Petroleum Exploration Nigeria Ltd, Kaztech Engineering Ltd, and Salvic Petroleum Resources Ltd all failed to appear before the committee. However, the Minister of Petroleum (State), Timipriye Sylva, and the Director of Department of Petroleum Resources (DPR), Sarki Auwalu, appeared before the committee.

Myrki Adar (APC, Sokoto), the chairman of the committee, issued the ultimatum and expressed readiness to summon the president if the Group Managing Director of the NNPC, Mele Kyari, should fail to appear before the panel.

He disclosed that the NNPC sent a letter to the committee that the matter was at the Supreme Court. However, Mr Sylva disputed the claim that the matter was in court.

While issuing the ultimatum, Mr Adar said the panel will not hesitate to summon the president, since he is the petroleum minister.

“Our message to all those that fail to appear before us as invited namely the NNPC, Addax petroleum company limited, Kaztech engineering ltd and Salvic petroleum resources limited.

“We are giving them two weeks from today. We would reschedule this meeting from now to two weeks to appear before this committee and continue our business.

“Unless they want us to invite President Muhammadu Buhari as minister of petroleum. If they do not come, we will not hesitate. Buhari is a minister. He appointed himself, approved by the parliament and he is doing his job. We would invite him. And I know as a law-abiding president he would come. If he comes, Nigerians should know that it is the failure of the NNPC to come that led him to appear before us.”


On April 6, the DPR revoked four oil assets belonging to Addax, now owned by Sinopec, a Chinese state oil company.

A presidential panel headed by a former senator, Magnus Abe, had accused the oil company of “economic wastages.”

The DPR revoked the four Oil Mining Leases (OMLs) citing the inability of the firm to comply with agreed terms.

The assets were re-awarded to two indigenous companies; Kaztec Engineering Limited/Salvic Petroleum Resources Limited (KEL/Salvic) Consortium.

Less than two weeks later, the federal government in a statement by the spokesperson to the President, Garba Shehu, restored the mining right of OMLs 123, 124, 126, and 137 to the NNPC which has a Production Sharing Contract with Addax Petroleum; thus reversing its operations back to Addax.

Aborted motion
Last week, a motion to investigate the matter was listed on the Order Paper of the House.

The motion was in the name of Nicholas Ossai (PDP, Delta). However, the Speaker, Femi Gbajabiamila, asked the motion to be stepped down.

The motion was stepped down and not considered by the House.

Minister Speaks

On Thursday, Mr Sylva said the NNPC wrote a counter-memo against his memo on the Addax assets. He added that he is yet to recognize the restoration order issued by NNPC.

“I wrote a memo to Mr President and it was approved, and NNPC wrote another memo against my memo.

“Having said that, the issue at hand is that no law was breached at all as far as Addax affairs are concerned. I am also not aware of any matter at the Supreme Court on this particular matter. I have just consulted the director of the Department of Petroleum Resources (DPR) who also told me that he is not aware.

“The matter of Addax was not commenced by me, this asset has been sub-optimally managed from the beginning of the acquisition to this moment, it has not been optimally operated.

“When Sinopec group acquired this asset from Addax, production was 130,000 barrel per day, as at today, we struggle to produce 35,000 barrel per day, from this asset, because there are no new investments, and the asset has progressively declined. We believe that with the requisite investment, we would have probably taken the asset to beyond 130,000 barrels per day.

“Obviously, there was an issue of mismanagement of the asset. Now, in the wisdom of the attorney general of the federation, he wrote to the president to say that this asset has not been properly managed. The letter was forwarded to me by Mr President for me to review,” he said.

He added that “NNPC is not in a position to withdraw a revocation or advise the withdrawal or revocation.”

President Buhari is the substantive minister for petroleum and has been since 2015. However, back in December 2020, the Minister of Justice, Abubakar Malami, had said that the National Assembly cannot summon the President.



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Probe Begins Monday As FG Suspends NPA Managing Director, Bala-Usman




The President, Major General Muhammadu Buhari (retd.), has suspended the Managing Director of the Nigerian Ports Authority, Hadiza Bala-Usman, sources familiar with the development said on Thursday.

It was learnt that a panel of inquiry had been constituted to look into the matter that prompted her suspension, as well as other concerns. The panel begins its work on Monday.

It was, however, not clear what necessitated the suspension of the NPA boss, who was only reappointed in January this year by Buhari.

Senior staff members of the Federal Ministry of Transportation, the parent ministry of the authority, confirmed the development but insisted that there was no official statement on the matter yet.

The spokesperson of the ministry, Eric Ojiekwe, could not be reached for comments on the development, as he did not answer calls when contacted on Thursday night.

Bala-Usman was first appointed as the managing director of the NPA in 2016 and was reappointed in January this year for another five years.

On Wednesday, the suspended NPA boss led her organization to sign a Memorandum of Understanding with the National Bureau of Statistics and the Nigerian Ports Authority to commence the production of statistical information and data analytics on port-related activities..

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