In furtherance of the administration’s commitment to transparency, probity, and accountability in the petroleum sector, President Goodluck Jonathan has directed that a comprehensive report of the Petroleum Revenue Special Task Force chaired by Mallam Nuhu Ribadu should be presented to him this week.
The Committee which was set up in February 2012, was required to, among other tasks, determine and verify all petroleum upstream and downstream revenues (taxes and royalties, etc,) due and payable to the Federal Government of Nigeria, and to take all necessary steps to collect all debts due and owed; to obtain agreements and enforce payment terms by all oil industry operators.
The presentation of the Committee’s report will take place on Friday, November 2, at 11 am, at the State House, Abuja.
Special Adviser (Media &Publicity) to the President
October 29, 2012


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Ribadu Report Uncovers Sleaze in Oil and Gas Sector
Obugi posted on 10-31-2012, 23:12:44 PM
Ajibs,

Much as I understand the thirst for elite blood, I think it's much more important to actually devise a realistic plan to make fuel freely available under free market conditions in order to help the economy, as has been done in telecoms, broadcasting and newspapers, cement, cocoa, airlines and fertilizer and banking, among others. As long as Nigeria remains a multi-ethnic neo-colonial state, only market capitalism can deliver the living standards we crave.

Even if Jona once again caves in to the baying mobs of the masses that want to see punishment, it will accomplish NOTHING as long as the system remains as is. Given what led to this level of fraud in the subsidy system, my judgement is that this is nothing but a hunt for scape goats to pacify the envious middle class who dream of themselves getting the opportunity to do the same thing.

All that will be accomplished is to set back market reforms, just like happened in the electricity market after Yaradua started chasing OBJ's stolen billions.

After Rawlings did his clean sweep, it took years and years of REFORM to get Ghana STARTED on improving living standards, and even with all the hype, they're still very, very poor.

Sorry for the commercial break.....back to the comedy jare!!!

!Get Yours!
Obugi
Re: President Jonathan to Receive Ribadu Report On Friday
Agensheku posted on 11-01-2012, 05:30:59 AM
QUOTE:
Hallelu...Hallelu...Halleluja!!!!!!!!

We dey watch. Friday abi?
Before you roll out the drums and cymbals, read a fresh expose from the Ribadu Committee first...

Ribadu commitee exposes how presidency, NNPC spend oil revenues as slush funds

Abdulrahman Abdulmalik
Published: October 31,2012

QUOTE:


The Nuhu Ribadu-led Petroleum Revenue Special Task Force has detailed how the Nigerian government and national oil company, Nigerian National Petroleum Corporation, treat huge oil revenues accruing to the federation as a reserve of money that could be used for illicit purposes without accountability.

In its 178-page report, obtained by PREMIUM TIMES last night, the committee revealed how oil money in the custody of the NNPC were spent on extra-budgetary purposes such as the acquisition of a N2.23billion chopper for the president and a purported sponsorship of the World Cup.

In what appears a brazen misuse of public funds, the NNPC also gave out N700.5million in loan to Sao Tome & Principe based on instruction from the presidency. It also made a curious payment of N2.421billion to a foreign company, Royal Swaziland Sugar Company. The reason for the payment is unclear.

The Corporation also claimed to have underwritten a N521million expenses incurred by the Federal Ministry of Petroleum Resources. This is in addition to the N250million the agency told the committee it spent on court cases involving the ministry.

The ministry has its own budgetary allocation and it is unclear why the NNPC is paying for its expenses. The nature of some of the expenses are also unclear.

The committee also found that the NNPC was being used as illegal lender to presidential committees, ministries and parastatals. For instance the corporation claimed it incurred about N20billion on the Presidential Implementation Committee on Maritime Safety and Security, based on instruction from the presidency.

The Ribadu committee also determined that about $1billion in signature bonuses, discrepancies in payment by the NNPC, and debts from oil companies were unaccounted for by the NNPC and the Department of Petroleum Resources.

Find table of missing money as documented by the Ribadu committee .

Excerpts of the report

\"...Theft of crude oil and refined petroleum products may be reaching emergency levels in Nigeria. The Task Force has received reports suggesting that volumes stolen have risen dramatically in the past 12-18 months. The Royal Dutch Shell Company, Shell in its presentation to the Task Force stated that an estimated 150,000 barrels of crude oil are stolen per day (about 6% of Nigeria's total annual production) causing a revenue loss of $13.5 million per day (at $100 per barrel) which amounts to $5billion per year of lost revenue.

On the other hand, high ranking Officials and Executives in the Federal Government tasked with the management of the nation's strategic Oil and Gas assets have several times stated the existence of large-scale on-going theft of Nigeria's crude oil. This represents government acknowledgment of the magnitude of the loss. Mr. Leke Oyewole, a Senior Special Adviser to President Goodluck Jonathan on Maritime Affairs, disclosed to the media in March, 2012 that Nigeria loses about 40 million metric tonnes of petroleum products amounting to about $20 billion (N3 trillion) to crude oil theft and illegal bunkering; while NNPC has publicly stated that it spent $1.2billion in the last ten years on pipeline repairs.

Further to the above, the Honourable Minister of Petroleum Resources had also stated at a media briefing in May, 2012 that the country was losing about $7billion annually to crude oil theft in Nigeria, at the rate of 180,000 barrels per day. Indeed, President Goodluck Jonathan has acknowledged the scale and seriousness of crude oil theft in Nigeria as being incomparable to anywhere else in the world, describing the occurrence as being cancerous to the nation's economy.

The Ministry of Finance has taken a middle ground, stating theft claimed 17 percent of daily production nationwide in April. Overall, estimates of crude oil stolen or spilled reviewed by the Task Force ranged from 6 to 30 percent of production, with 35 percent claimed for one especially troubled area. Based on these estimates, the Task Force believes Nigeria could be losing over N1tn per year to crude oil theft.

The Task Force does not endorse any of the numbers it received as solely authoritative. The bases for many were unclear, and the decentralized, secretive nature of oil theft makes it difficult for any one party to know the full extent of losses. There is a lack of consensus on the actual loss, naturally public records are not satisfactory in this regard but it could actually be as high as 250,000 barrels per day closer to 10% of daily productions.

However, submissions to the Task Force on oil theft suggest that the problem needs immediate attention.

NNPC and oil company data shows dramatic recent rises in theft and sabotage. For example, Shell claims it found at least 50 tap points on its 90km Nembe trunk line in January 2011 alone. Shell submissions to the Task Force showed average total losses in its operational areas climbing from 10,000bpd in late 2009 to over 50,000bpd in March 2012. Chevron reports 29 tap points for the year so far, and claims volumes lost from its operations in Q1 2012 exceeded losses for all of 2011. The NNPC put its total losses from 2009 to Q1 2012 at over 20mn barrels.

It appears small-scale theft and illegal refining are also becoming more decentralized and wide spread, though losses from such practices remain relatively small compared with the more sophisticated large-scale theft rings. In one striking example of rising costs, NNPC data shows the value of stolen crude along the 60km Forcados-Warri refinery supply pipeline was 600 percent higher in 2011 than in 2010. Total losses were N60 billion from this pipeline alone' or N1bn of oil stolen per km of pipeline.

These incidences of crude theft also delay realization of revenues by deferring production. Shell has declared force majeure on onshore liftings five times since early 2011, all reportedly linked to illegal bunkering. One December 2011 stoppage, allegedly caused by two failed pipeline taps, took a month to fix and deferred over 4 million barrels. Damage to infrastructure also causes long-term production deferments. Government data shows dozens of fields sabotaged before the amnesty still sit idle. Shell's onshore output' currently around 600,000bpd' is barely half of 2005 levels. In Delta State, Chevron still produces one third less oil than it did in 2008...\"


SOURCE: PREMIUM TIMES
Re: Ribadu Report Uncovers Sleaze in Oil and Gas Sector
Mikky jaga posted on 11-01-2012, 09:26:53 AM
QUOTE:
\"I do not see why government should pay subsidy to those who sell at above official price\", he added.


Jonathan is at it again, paying subsidy to people selling above official price. Until another Farogue will expose the corruption before Jona will begin to chase shadows. So, it is not any law that encourages corruption in the oil industry, but corrupt leaders that are not interested in doing clean business.
Ribadu Report Uncovers Sleaze in Oil and Gas Sector
Obugi posted on 11-01-2012, 15:17:46 PM
Agens,

If NNPC and the oil wells were private property AS THEY SHOULD BE in a free country, we wouldn't be hearing of misappropriations. THE ONLY THIEVES HERE ARE THE NIGERIAN PEOPLE AND THE FED GOVT.

The good thing is, there's nothing illegal with a govt corporation making LOANS to Fed agencies or foreign govts. This is the same issue with NEPA/PHCN, the govt giving them "quasi independence" actually made their management worse, look at the PHCN Pension Scheme. Still there's no allegation of personal enrichment, just lots of hand waving and innuendo to justify a MOB LYNCHING.

Privatize NNPC, give the oil wells back and tax them. There's no allegation of CORRUPTION at Benue Cement and Nigeria Airways.

The only illegal activity here is CRUDE OIL THEFT and that's what the report is mostly about. The crude is stolen goods anyway, so why the crying. Thieves jam thiefs, may they MEND their ways.

Mikky Jaga,

QUOTE:
Jonathan is at it again, paying subsidy to people selling above official price. Until another Farogue will expose the corruption before Jona will begin to chase shadows. So, it is not any law that encourages corruption in the oil industry, but corrupt leaders that are not interested in doing clean business.


Read the whole article again, in context. There's no allegation that subsidized fuel is being sold for higher than official prices. He's just saying that govt should let them sell at their own free market prices instead of FORCING them to take subsidies in hopes of selling cheap petrol that is never available.




!Get Yours!
Obugi
Re: Ribadu Report Uncovers Sleaze in Oil and Gas Sector
Mikky jaga posted on 11-01-2012, 16:05:43 PM
QUOTE:
Mikky Jaga,

Read the whole article again, in context. There's no allegation that subsidized fuel is being sold for higher than official prices. He's just saying that govt should let them sell at their own free market prices instead of FORCING them to take subsidies in hopes of selling cheap petrol that is never available.




!Get Yours!
Obugi


You are reading what youm have in mind intyo the story.

The guy said when they receive official allocation, they sell at official price, but when they buy from private depots at N100.00, they had to sell at higher than the official price.

Now, those private depots that sell at N100 per litre will still go and collect subsidy from Jonathan's government. That was what the fella said was not right.

Jonathan is a screwed up corrupt politician. He is not interested in probity in the oil industry in spite of his grandstanding.
Re: Ribadu Report Uncovers Sleaze in Oil and Gas Sector
Ajibs posted on 11-01-2012, 16:10:02 PM
Agens & Obugi,

Look dis thing don tire me, I am just watching the jamboree. Celebrating the report release or bring anybody to book? I am watching, but not necessarily waiting. I don dey tire for all of them.

I agree with Obugi, yes it might be nice to bring the "culprits" whom we have been told they did nothing wrong to book, (So I do not kno wthe usefulness of a report that has said nobody broke the law) but is is more important to see the oil market free in that country.

Anyways, for strange reasons, Fela's ITT came to mind...

QUOTE:
Them get one style wey them dey use
Them go pick one African man
A man with low mentality
Them go give am million naira breads
To become of high position here
Him go bribe some thousand naira bread
To become one useless chief

Like rat they do them go do from
Corner corner, pass-ee pass-ee
Under under, pass-ee pass-ee
Inside inside, pass-ee pass-ee
In in, pass-ee pass-ee
Out out, pass-ee pass-ee
Peep peep, pass-ee pass-ee
Up up, pass-ee pass-ee...

Then he gradually, gradually, gradually, gradually...
Then he gradually, gradually, gradually, gradually...

Them go be:
Friend friend to journalist
Friend friend to Commissioner
Friend friend to Permanent Secretary
Friend friend to Minister
Friend friend to Head of State

Then start start to steal money
Start start them corruption
Start start them inflation
Start start them oppression
Start start them confusion
Start start them oppression
Start start to steal money
Start start to steal money

Like Obasanjo and Abiola
Read more at http://www.songmeanings.net/songs/view/3530822107858727854/#KreBsIlVTiszi0H2.99


Imagine a 32 year old song describing today's Nigeria... Kai Chineke!
Re: Ribadu Report Uncovers Sleaze in Oil and Gas Sector
Obugi posted on 11-01-2012, 16:59:24 PM
Mikky Jaga,

QUOTE:
You are reading what youm have in mind intyo the story.

The guy said when they receive official allocation, they sell at official price, but when they buy from private depots at N100.00, they had to sell at higher than the official price.

Now, those private depots that sell at N100 per litre will still go and collect subsidy from Jonathan's government. That was what the fella said was not right.


Not true. Even if it is true, the solution is to ABOLISH SUBSIDY AND PRICE FIX. That way no one gets ANY govt payment, the illegal refiners will become legal and they will supply the market just like they are doing now, except it will be legal and they won't have to bribe anyone.

Do you agree that is a viable solution?

QUOTE:
Jonathan is a screwed up corrupt politician. He is not interested in probity in the oil industry in spite of his grandstanding


YIPEEEEE! I AGREE !!!!

He was interested in January this year and saw his best intentions being used to demonize him. He has probably cocluded that it's best to siddon look and chop his own - at least chop more than he would have otherwise.

People like you and Agensheku and the vast majority that think like you are the reason good people refuse to have anything to do with govt.

People like you are the reason those in govt never have mercy on us.

"Educated" Nigerians refuse to think, they allow envy and self hatred to push them into tarring their own and excuse worse evils committed by those govts of "countries where things are done properly", those countries that are in fact at the ROOT OF CORRUPTION in the petroleum sector. Nooo, it's only our fellow Negroes that you can muster the courage to attack.

Here we have a CLEAR CASE, detailed in this report, of the Fed Govt LEGALLY robbing oil producing tribes of their God given wealth and dashing it to Chevron, Total and Shell and using THE LEFTOVERS to give us cheap fuel, but we choose to focus on the SYMPTOMS of the problem. The Chairman of Shell said in the Wikileaks documents that they basically own Nigeria - yet you all would rather rage and protest over cheap fuel that you get from the arrangement. What else is HYPOCRISY and COWARDICE about if not this this kind of cynicism.

Mr. Agens and Mikky, go and research the governance of govt entities called "corporations" under Nigerian law and you will find there's nothing wrong with any of the spending at NNPC. Even the scandal at PHCN is somewhat excusable, afterall the workers gave their money to a Union in agreement with an independent corporation. If only they will take their losses in peace and let our robber baron Big Men provide us with electricity!

All you bad belle critics, I hold the lot of you beneath contempt. Go and study the issues and related laws and come back and make an intelligent argument let's see.

!Get Yours!
Obugi
Re: Ribadu Report Uncovers Sleaze in Oil and Gas Sector
Auspicious posted on 11-01-2012, 17:10:01 PM
-

I dare Goodluck Jonathan to fire the lady minister at the petroleum resources ministry.

Metala e o tobe! (Jonathan X 13 wouldn't dare!) Won bi'ya la'YA e! (Dem nor am join eim mama to do am!)!
--
Re: Ribadu Report Uncovers Sleaze in Oil and Gas Sector
Mikky jaga posted on 11-01-2012, 17:26:32 PM
QUOTE:
Mikky Jaga,



Not true. Even if it is true, the solution is to ABOLISH SUBSIDY AND PRICE FIX. That way no one gets ANY govt payment, the illegal refiners will become legal and they will supply the market just like they are doing now, except it will be legal and they won't have to bribe anyone.

Do you agree that is a viable solution?



!Get Yours!
Obugi


The man in the piece you quoted gave the solution. Build more refineries, then there will be no need for any subsidy. Your solution will only place common Nigerians at the mercy of Shylock fuel importers.
Re: Ribadu Report Uncovers Sleaze in Oil and Gas Sector
Obugi posted on 11-01-2012, 18:58:50 PM
Mikky Jaga,

QUOTE:
The man in the piece you quoted gave the solution. Build more refineries, then there will be no need for any subsidy. Your solution will only place common Nigerians at the mercy of Shylock fuel importers.


Who should build the refineries? That's the REAL issue that comes up in trying to IMPLEMENT your this solution.

So who should build the refineries?

!Get Yours!
Obugi
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