INSTANT NEWS

The Senate has declared its determination to ensure the dismissal and prosecution of the Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, along with other top executives. This stern stance follows the alleged expenditure of N12 trillion on the turn-around maintenance (TAM) of the country's non-operational refineries.

The Senate Ad hoc Committee, responsible for investigating various TAM projects within Nigerian refineries, disclosed that records show expenditures exceeding $592 million, €4.8 million, and £3.4 million between 2010 and 2023 on TAM, without corresponding functionality improvements in the refineries.

During an interactive session with the NNPCL management and executives from the oil sector, the committee expressed dissatisfaction with the non-appearance of chief executive officers from invited agencies. Among these agencies were the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and their subsidiaries.

Senator Isa Jibrin, the chairman of the ad hoc committee, emphasized the urgency of understanding and rectifying the identified leakages in the turn-around efforts. He declared the committee's intent to demand refunds and dismissals of all chief executives involved in the maintenance projects.

Senator Yahaya Abdullahi echoed the sentiment that representatives should communicate to their chief executives the imperative to appear in person. Senator Sumaila Kawu highlighted the seriousness of the Senate's business and its commitment to representing the interests of the people. He urged respect for the Constitution and warned of possible suspension of the interaction until the agencies were ready for meaningful participation.

Senator Danjuma Goje clarified that the committee's focus is on dealing directly with heads or chief executives rather than their representatives. He proposed setting new dates for the submission of required documents and scheduling a meeting where chief executives must personally attend. The agencies were given until Tuesday to provide the necessary documents ahead of the meeting with their respective chief executives.

Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, has urged Finance Minister Olawale Edun to compel the Nigerian National Petroleum Company Limited (NNPCL) to remit $34.2 billion to the federation account. This substantial sum represents money received on behalf of the government from Nigeria LNG Limited (NLNG) between the years 2004 and 2021.

In a letter dated October 25, 2023, addressed to the minister, Falana further warned that he would file a lawsuit at the Federal High Court for the immediate recovery of the funds from NNPCL if it declines to make the necessary remittance.

Falana highlighted that on April 27, 2019, the Senate committee on public accounts held a public hearing on revenue generation for the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP). During this hearing, NLNG's General Manager for External Relations and Sustainable Development, Eyono Fatai-Williams, revealed that the company paid dividends of over $18 billion to Nigeria through NNPCL from 1999 to 2019.

Furthermore, Fatai-Williams disclosed that NLNG had paid $9 billion in taxes to the Federal Government from 2011 to the present, and an additional $15 billion had been remitted for gas to NNPCL since the company's inception. Following this revelation, the Senate committee asked the suspended Accountant-General of the Federation, Ahmed Idris, to confirm whether the sum of $33 billion was indeed remitted to NNPCL.

According to Falana, Idris revealed that the funds paid by NLNG were not remitted to the federation account but were instead held by NNPCL. In light of this, the Public Accounts Committee directed the Accountant-General to ascertain the exact amount that was remitted to the federation account, whether any deductions were made by NNPCL, the amount deducted, who authorized the deductions, and the exchange rates applied for the remitted amounts over the years under review.

In a letter dated July 28, 2023, the President of Nigeria made a significant move in the ongoing fight against corruption. He appointed Jim Obazee, the Chief Executive Officer of the Financial Reporting Council of Nigeria, as the Special Investigator with immediate effect. The primary task assigned to Obazee is to conduct a thorough investigation into the Central Bank of Nigeria (CBN) and other key Government Business Entities (GBEs). Notably, the Special Investigator will report directly to the President's office, emphasizing the importance and seriousness of this assignment.

The President's letter referenced Section 15(5) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), which underscores the administration's commitment to combat corruption at all levels. The specific terms of Obazee's engagement as Special Investigator will be communicated to him in due course, but the initial requirements are to focus on enhancing the integrity and transparency of the identified Government Business Entities. The investigator is also expected to plug leakages within the CBN and related GBEs and provide a comprehensive report on the current state of public wealth and any involvement of corrupt individuals or establishments, whether in the private or public sector.

To carry out this critical investigation, Obazee will work alongside a competent and experienced team. Furthermore, collaboration with relevant security and anti-corruption agencies will be imperative to ensure the success of this endeavor. As a testament to the significance of the assignment, the President has requested regular weekly briefings on the progress being made, further highlighting the importance of this investigation in the nation's fight against corruption.

Moreover, the President took additional action by sharing a copy of his directive to suspend Godwin Emefiele as Governor of the CBN on June 9, 2023. This move indicates the seriousness with which the administration is addressing issues within the financial sector and its commitment to upholding transparency and accountability.

As Nigerians await the outcome of this investigation, the appointment of Jim Obazee as Special Investigator brings hope for a more transparent and accountable governance system. The nation anticipates that this proactive approach will pave the way for a stronger and more prosperous future, free from corruption and unethical practices.

In a surprising turn of events, President Bola Tinubu has suspended Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), following an ongoing investigation initiated by the House of Representatives. The suspension has raised speculation about the motives behind the decision, and it has also led to allegations of terrorism financing against Emefiele. This blog post delves into the details surrounding the suspension and sheds light on the investigations that have led to this development.

Investigations by the House of Representatives:

The House of Representatives had launched a probe into the activities of the CBN under Emefiele's leadership. One of the investigations focused on the alleged missing 48 million barrels of Bonny Light crude, which prompted the summoning of Emefiele. The CBN governor was asked to provide details on the N32.5 billion payment made to two companies, Messrs GSCL Consulting and Bizplus, without proper records. Another investigation examined the alleged payment of $200 million to these firms for "consultancy services."

Suspension and DSS Probe:

President Tinubu suspended Emefiele from his position, citing the ongoing investigation and the planned reforms in the financial sector. The Deputy Governor in charge of Operations, Folashodun Adebisi Shonubi, was directed to assume the role of acting Governor during the suspension period. Sources in Abuja revealed that Emefiele has been barred from leaving the capital and might face a probe by the Department of State Services (DSS) for alleged terrorism financing. The House of Representatives' inquisition into the CBN's activities under Emefiele had unveiled several issues, leading to the decision to suspend him pending further investigation.

Implications of the Suspension:

The suspension has raised questions about the legal framework surrounding Emefiele's removal from office. The CBN Act stipulates that the President cannot unilaterally remove a CBN Governor, requiring a two-thirds majority vote by the Senate. Due to these constraints, Emefiele was technically suspended rather than outright sacked. However, it appears unlikely that he will be recalled from suspension, given the circumstances. The DSS investigation into Emefiele's alleged terrorism financing has gained significance, and his restricted movement suggests further action may be taken against him.

Reactions and Reflections on Emefiele's Tenure:

Financial economist Uche Uwaleke commented on the suspension, emphasizing that it marks the end of a turbulent era. Uwaleke acknowledged Emefiele's implementation of significant policies, such as the Anchor Borrower Program and the eNaira, which helped stimulate the economy during periods of recession. While he credited Emefiele for ensuring financial sector stability and effective forex demand management, Uwaleke noted criticisms concerning the currency redesign exercise and the significant growth of CBN Ways and Means during Emefiele's tenure.

The suspension of Godwin Emefiele as the Central Bank Governor amid ongoing investigations has sent shockwaves throughout Nigeria. The decision by President Tinubu, triggered by the House of Representatives' probe, raises questions about the future of the CBN's leadership. As Emefiele faces allegations of terrorism financing, the possibility of a thorough investigation by the DSS looms. This turn of events highlights the need for accountability and transparency within the financial sector as Nigeria strives for economic stability and growth.