Hottestgistnaija.com
Abuja, October 24, 2023 — In a stunning revelation, prominent human rights lawyer, Femi Falana SAN, has penned an open letter to Mr. Adebayo Olawale Edun, the Hon. Minister of Finance and Coordinating Minister of the Economy, urging the government to recover an astounding $34.2 billion in dividends being withheld by the Nigerian National Petroleum Commission Limited (NNPCL).
The saga began during a public hearing on the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) held by the Senate Committee on Public Accounts on April 27, 2019. During the hearing, Mrs. Eyono Fatai-Williams, NLNG General Manager, External Relations and Sustainable Development, disclosed that between 1999 and 2019, Nigeria received dividends exceeding $18 billion through the NNPCL from the Nigerian Liquefied Natural Gas Limited (NLNG). Furthermore, $9 billion in taxes was remitted to the federal government by NLNG from 2011 to the present, with an additional $15 billion for feed gas purchases to the NNPC.
This revelation prompted the Senate Committee to question the suspended Accountant-General of the Federation, Mr. Ahmed Idris, who confirmed that the funds paid by NLNG had not been remitted to the Federation Account but were warehoused by the NNPCL.
Subsequently, the Senate’s Public Accounts Committee directed the Accountant-General to ascertain the actual amount remitted to the Federation Account, any deductions made by the NNPC, the authorized deductions, and the exchange rates used for remittances over the years under review.
In a related event on March 29, 2021, former President Muhammadu Buhari, during the virtual Nigeria International Petroleum Summit (NIPS) 2021 Pre-Summit Conference, disclosed that the NLNG had generated an astonishing $114 billion in revenues over the years. This included $9 billion in taxes remitted to the Federal Inland Revenue Service (FIRS), $18 billion in dividends, and $15 billion in Feed Gas Purchases (FGP) to the Federal Government through the NNPC.
However, the latest twist in the story came to light when it was revealed that in 2020 and 2021, the NNPCL received dividends totaling $1.267 billion from the NLNG. Shockingly, this substantial sum was not remitted to the Federation Account, raising the total amount being held by the NNPCL to an eye-popping $34.2 billion.
Femi Falana SAN, in his letter to the Hon. Minister of Finance and Coordinating Minister of the Economy, categorically stated that the NNPCL’s decision to divert these funds lacks any legal basis. Falana demanded the immediate remittance of the $34.2 billion to the Federation account, emphasizing that the money was received on behalf of the Government of Nigeria from 2004 to 2021.
Falana didn’t mince words, warning that failure to comply with this request would lead to legal action at the Federal High Court to recover the $34.2 billion from the NNPCL. Additionally, they would petition the court to direct the NLNG to remit dividends earned by Nigeria to the Federation Account without delay.
The Nigerian government now faces increasing scrutiny and public pressure to take action in what could be one of the largest financial controversies in the country’s recent history. As the situation unfolds, all eyes are on the government’s response to this extraordinary demand for accountability and transparency.
