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BIG STORY

Fuel Subsidy: States Kick As NNPC Continues Deductions, FAAC To Meet On Wednesday

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As the Federation Account Allocation Committee meets for the first time in 2022 on Wednesday, there are significant indicators that state and federal governments are once again at odds.

Officials from the state, speaking to our correspondents on Sunday, criticized the Nigerian National Petroleum Corporation’s continuous diversions from FAAC monies to support fuel subsidies, stating that the issue would be discussed at the meeting on Wednesday.

On Wednesday, the NNPC was set to remove N270.83 billion from the January FAAC allocations, which would be divided by state, federal, and local governments.

Asuquo Ekpenyong, Junior, the Cross River State Commissioner for Finance, verified to one of our correspondents that the FAAC meeting will take place between Wednesday and Thursday.

In its December 2021 report to the FAAC, the NNPC announced that it will deduct some monies as a value shortfall sustained by the oil company in January 2022.

During the FAAC meeting in January, the company said it would subtract N270.83 billion from the amount to be split by the three tiers of government.

It said, “The estimated value shortfall of N270,831,143,856.56 is to be recovered from December 2021 proceed due for sharing at the January 2022 FAAC meeting.

“This value shortfall consists of N220,110,853,427.56 for November and N50,720,290,429.00 deferred for recovery in December 2021 FAAC report.”

Deductions unjustifiable – Delta

Speaking ahead of the FAAC meeting, the Delta State Commissioner for Finance,  Mr. Fidelis Tilije, in an interview, said that the Finance Commissioners’ Forum had made a series of conclusive resolutions on the deductions by the NNPC to finance fuel subsidy.

According to him, state governments will continue to oppose the deductions, which he described as non-transparent.

Tilije, who chaired the finance commissioners forum’s committee on the Petroleum Industry Act, said, “The issue of removal of fuel subsidy is the Federal Government’s responsibility and not FAAC responsibility.

“Ours is to look at sources of funding and expenditure. We have made a series of conclusive resolutions on the need for subsidy to be removed on one angle and secondly to also check the NNPC because we don’t know who is checking on what kind of subsidy they are paying.

“Because they are the one collecting the subsidy and they are the one spending it.  Those issues have been queried, of course, the Federal Government is in charge of the NNPC and the NNPC also behaves like a law. Until the Federal Government can take a decision on the issue of subsidy and there is nothing anybody can do.

“But unfortunately the Federal Government is also saying that it will need the state governors to guarantee the wellbeing of the people and ensure that there is no labor strike in their various states before they can remove subsidy. Who does that?”

When asked about the stand of states ahead of Wednesday’s meeting, he stated, “We have always been kicking against it (deductions for subsidy) and we will continue to kick against it, what we are saying is that the subsidy they are paying cannot be justified.

“We don’t know the exact figure we are consuming on a daily basis but their own argument is that now the price of crude oil has gone up and if you sell the crude oil at a high price and import petrol, you will have to be buying the petrol at a high price but for me, it is not true.”

It’s injustice against Ekiti – Commissioner

On his part, the Ekiti State Commissioner for Finance, Akin Oyebode,  expressed the opposition of the state government to the deduction of money for fuel subsidy from the Federation Account without the consent of states.

Oyebode, who said he could only speak for his state, said such deductions, which exemplified the country’s flawed fiscal federalism, amounted to injustice to some states including Ekiti.

The commissioner said, “I have been on record at the various Federation Accounts Allocation Committee meetings to state my vehement opposition to the continued deduction of subsidy without subjecting it to the consent of the states”.

He suggested two options for the Federal Government to resolve the issue going forward.

Oyebode said, “The issue is very clear, if the Federal Government decides in its wisdom to operate the subsidy on petroleum products without getting the consent of states, then it should bear the cost of the subsidy 100 percent and that cost should be taken from the Federal Government’s share of the Federation Account, not deducted at source from the Federation Account.

“And in the event that we, as a country, agree to continue with the subsidy regime, then the deduction should be made in line with the consumption of petroleum products in each state.

“A situation where Ekiti, for example, that consumes less than one percent of petroleum products gets a deduction of N3bn a month, is a significant loss to Ekiti. We could have used that money to meet all sorts of different demands from our people.

“We believe that this is again another example of the flawed fiscal federalism structure that we operate. Of course, this subsidy request has been tabled at FAAC, all we get at the meetings are reports of deductions taken at the source which I very strongly believe are even unconstitutional because these are not subject to appropriation.

“The Nigerian National Petroleum Corporation, in its wisdom, just comes and reports that this is how much was taken and they call it some funny names, but we know what it is – deductions for subsidy.”

Oyebode said that a curious aspect of the whole thing was that “there is even no basis for interrogating if in truth the volume of products on which subsidy had been charged had actually even got to the consumers.”

We are not in charge of Subsidy – NNPC

But when contacted, the spokesperson of the NNPC, Garba-Deen Mohammad, told our correspondent that the issue of petrol subsidy was beyond the control of the oil firm.

He stated that with the advent of the Petroleum Industry Act, the matter of subsidy was outside the control of the NNPC but was a matter being handled by the Federal Government.

Garba-Deen said, “Subsidy is not under the control of the NNPC. The subsidy is now a PIA issue and it will be determined by the principles of the Petroleum Industry Act. Not by the NNPC.

“The NNPC is an operator now in the market, just like Shell or Chevron or like any other oil company. So I don’t know anything you are talking about.”

When probed further on whether petrol subsidy would be stopped, replied, “We are speaking the same thing, I say I don’t know. I have no idea, I am just an employee of the NNPC.”

BIG STORY

Supporters Cheer As Suspended Senator Natasha Akpoti Defies Senate, Returns To National Assembly Amid Tight Security

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Senator Natasha Akpoti-Uduaghan showed up at the National Assembly on Tuesday, where a crowd of her supporters had already gathered outside the complex.

Security presence at the National Assembly gate was significantly heightened, with stern-looking officers inspecting vehicles and limiting access for visitors, directing them to park outside.

At least five police patrol vans were observed stationed at a key point near the Assembly gate.

The increased security followed Akpoti-Uduaghan’s declaration that she intended to resume her senatorial duties despite warnings from the Senate.

The senator, who was suspended in March, said over the weekend that she had officially informed the Senate of her plans to return, basing her decision on a recent court ruling.

Speaking during a constituency training session, she stated that she had written the Senate leadership about her return.

“I will be there, because the court did make the decision on that. Now, they argue that it’s an order, it’s not an order, but it is a decision,” she insisted.

She emphasized that although her suspension hadn’t hindered her from carrying out constituency-related initiatives, it had prevented her from fully participating in legislative responsibilities such as introducing bills and sponsoring motions.

Her position was supported by her legal counsel, Senior Advocate of Nigeria, West Idahosa, who asserted that the court’s ruling justified her return to the Senate.

“Let me be honest with you. Attendance is a legislative action.

“As far as we are concerned, we are focused on the appeal and other issues before the court.

“I think the decision to go back to the Senate will be determined by the constituents.

“Now that she said she wants to go and resume, let us see what the reaction of the Senate will be. But the most important thing is that she is still a senator of the Federal Republic of Nigeria,” he said in a phone interview.

When contacted on Monday, Akpoti-Uduaghan’s aide, Isah Bala, said he couldn’t confirm her immediate plans.

“It is not something I can immediately confirm now because we just returned from a programme in Okene,” he said, adding that he would provide clarity later.

By the time of reporting, Bala had yet to respond with further information.

Meanwhile, the Senate reiterated its stance that the senator remains suspended and barred from the chamber until the conclusion of the suspension period.

Senator Yemi Adaramodu, who chairs the Senate Committee on Media and Public Affairs, restated the Senate’s position on Sunday, saying there was no court order mandating her reinstatement.

In a separate development, activist Aisha Yesufu pledged to accompany Akpoti-Uduaghan to the Senate on Tuesday as a show of support.

During an appearance on Channels Television’s Sunrise Daily on Monday, Yesufu criticized the Senate’s position and cautioned against ignoring judicial decisions.

She also labeled Akpoti-Uduaghan’s suspension as unconstitutional and accused the Senate of overstepping its bounds.

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BIG STORY

RE-Mining Cadastre Office, A Threat To National Security — By Engr. Tafa Bakori

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I came across a hogwash of an opinion article penned by a suspected fictitious character named Biliyaminur Surajo titled, “Mining Cadastre Office, A Threat to National Security” published on Sahara Reporters and other online media which by all intents and purposes was crafted to not only diminish the great job the Mining Cadastral office (MCO) is doing but also to cast aspersion on the foremost cadastral agency and bring it to disrepute. As a mining stakeholder for over 15 years, I am an insider conversant with the inner workings of MCO and I’ve been following with keen interest ongoing reforms by the present administration to reform and reposition the mining sector. It therefore beggars’ belief that any sane individual can seek to denigrate such efforts with patently outlandish claims as encapsulated in the jaundiced article.

The writer claims that the MCO “has become synonymous with corruption, bribery, and unprofessionalism” without any shred of evidence but rather put together a contraption of conjectures and false narratives to justify his warped conclusion. Reading through the piece, I saw a desperate attempt by the writer to allude to outrightly preposterous postulations by “faceless industry stakeholders”, more like an attempt to “give a dog a bad name, in order to hang it”.

He cited a crisis of overlapping titles, alleging that “for a fee, fake community consent documents can be obtained through MCO channels”. This is not only far from the truth, but a blatant lie. With my vast knowledge of the mining sector, I can assert that the allegations are totally baseless and unfounded because MCO does not get involved in obtaining land owner/occupier consent which is the responsibility of the applicant after the successful submission of application, and the receipt of their priority number.

If Mr. Surajo knows those purportedly claiming to be MCO agents or officers carrying out such nefarious activities, he should bring them forward or submit details of such unscrupulous individuals to the security agencies for necessary action. The onus of proof falls on those who alleges. One would have expected some “naming and shaming” at the least, but carrying out a hatchet job hinged on falsehoods can be such an arduous task.

Claiming that public complaints on overlapping titles fell on “deaf ears” is also disingenuous to anyone conversant with happenings in the sector. While it a known fact that during the process of migrating the cadastral system from computerized to the online Electronic Mining Cadastre plus (eMC+), some of the valid titles couldn’t be moved due to some systemic issues, several efforts have been made to correct the anomaly. I am aware that the rectification took some time which might be responsible for instances of overlapping titles that were hitherto seen on the eMC+ platform. During that period of glitch, it was reported that applicants saw free mining areas on the platform which already has valid owners before the migration and these caused the few incidences of overlapping titles.

From my investigations, it was gathered that a standing committee has since been at work resolving the issues amicably and it is pertinent that those that are facing similar challenges reach out to the agency. I have it on good authority that the cases that have been brought to the attention of the agency have been resolved till date. It is also pertinent to note that the MCO has never lost a single case in court which implies that the agency is guided at all times by extant provisions of the law and the statutes guiding the operations of the agency.

The fictitious writer also erroneously alleged that “beyond official fees, industry sources report a pervasive culture of additional payments to individual MCO officers”. From my experience over the years, this is likely a case of itinerant fake consultants posturing as MCO staff. An instance revealed by the grapevine is a case of a suspect presently cooling his heels in the Force Criminal Investigation Department (FCID), Garki, Abuja for impersonating the Special Technical Assistant (STA) to the DG, Madaki Joseph. The suspect, one Shehu Bokane, operating from his base in Niger State has allegedly duped his victims of several millions of Naira, and this is verifiable. This is just one instance and there could be many more at large. What anyone privy to such malfeasance should do is to report the culprits to the authorities instead of tarring an entire agency with the brush of corruption based on false premise or spurious allegations.

Not done trying to justify his fables, the writer described that Mineral Sector Support for Economic Diversification Project (MINDIVER), funded by the World Bank designed to prevent duplication of titles as a failure. While the eMC+ system faced initial hitches, the system has largely digitized the application processes as all mineral title applications are now submitted exclusively through the system. Like the DG MCO, Engr. Obadiah Nkom said at some fora, “It’s an entirely online platform that offers transparency, efficiency, and real-time access.” Feedback from industry stakeholders back this assertion.

From an informed perspective, the initial glitches that affected the migration of the cadastral system to the eMC+ platform might have been averted if the MCO technical staff had some input in the building of the electronic system. That was not the case as I learnt the agency only made inputs and modifications after the system funded by MINDIVER, was delivered.

I was privileged to attend the recently held African Natural Resources and Energy Investment Summit (AFNIS) in Abuja, graced by some African ministers of mining and energy amongst other global and continental mining players. The robust engagements I saw, the Ministerial roundtable convened by the African Minerals Strategy Group (AMSG) and chaired by the Solid Minerals Development Minister, Dr. Dele Alake is a sharp contrast to the picture of purported “wasted foreign trips to mining conferences” painted by the writer. It was also recently widely reported that some Nigerian mining professionals went on a capacity building training to Murdoch University in Australia. If that doesn’t represent fruits of Nigeria’s proactive engagement with the global mining community, I wonder what it is.

While there might be need for improvement in some areas like any other human endeavor, it smacks of utter mischief for the writer to paint a gloomy picture of the operations of MCO and by extension the mining sector. For the first time, in our nation’s recent history, the mining sector is experiencing a resurgence on account of the renewed focus of the Tinubu administration in developing solid minerals alongside the tenacious passion of Minister Alake in carrying on with reforms.

It is quite ludicrous that the writer will attempt to describe an agency that is renowned across the African continent as leading a very efficient cadastral system as a threat to national security. Unlike the bogus conclusion of the imaginary stakeholder, “the future of Nigeria’s solid minerals sector—and potentially the nation’s economic diversification” is bright and on course. No hatchet job or sponsored machinations of those frustrated by laudable efforts to reposition the mining sector must be allowed to stand or mislead the public. All Nigerians and responsible stakeholders should join hands with government to take our mining industry to greater heights.

 

Engr. Tafa Bakori, a mining stakeholder, writes from Niger State.

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BIG STORY

BREAKING: Natasha Arrives As National Assembly Beefs Up Security

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Senator Natasha Akpoti-Uduaghan showed up at the National Assembly on Tuesday, where a crowd of her supporters had already gathered outside the complex.

Security presence at the National Assembly gate was significantly heightened, with stern-looking officers inspecting vehicles and limiting access for visitors, directing them to park outside.

At least five police patrol vans were observed stationed at a key point near the Assembly gate.

The increased security followed Akpoti-Uduaghan’s declaration that she intended to resume her senatorial duties despite warnings from the Senate.

The senator, who was suspended in March, said over the weekend that she had officially informed the Senate of her plans to return, basing her decision on a recent court ruling.

Speaking during a constituency training session, she stated that she had written the Senate leadership about her return.

“I will be there, because the court did make the decision on that. Now, they argue that it’s an order, it’s not an order, but it is a decision,” she insisted.

She emphasized that although her suspension hadn’t hindered her from carrying out constituency-related initiatives, it had prevented her from fully participating in legislative responsibilities such as introducing bills and sponsoring motions.

Her position was supported by her legal counsel, Senior Advocate of Nigeria, West Idahosa, who asserted that the court’s ruling justified her return to the Senate.

“Let me be honest with you. Attendance is a legislative action.

“As far as we are concerned, we are focused on the appeal and other issues before the court.

“I think the decision to go back to the Senate will be determined by the constituents.

“Now that she said she wants to go and resume, let us see what the reaction of the Senate will be. But the most important thing is that she is still a senator of the Federal Republic of Nigeria,” he said in a phone interview.

When contacted on Monday, Akpoti-Uduaghan’s aide, Isah Bala, said he couldn’t confirm her immediate plans.

“It is not something I can immediately confirm now because we just returned from a programme in Okene,” he said, adding that he would provide clarity later.

By the time of reporting, Bala had yet to respond with further information.

Meanwhile, the Senate reiterated its stance that the senator remains suspended and barred from the chamber until the conclusion of the suspension period.

Senator Yemi Adaramodu, who chairs the Senate Committee on Media and Public Affairs, restated the Senate’s position on Sunday, saying there was no court order mandating her reinstatement.

In a separate development, activist Aisha Yesufu pledged to accompany Akpoti-Uduaghan to the Senate on Tuesday as a show of support.

During an appearance on Channels Television’s Sunrise Daily on Monday, Yesufu criticized the Senate’s position and cautioned against ignoring judicial decisions.

She also labeled Akpoti-Uduaghan’s suspension as unconstitutional and accused the Senate of overstepping its bounds.

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