Connect with us

News

Nigerian Government to Hire External Auditor for N2.7 Trillion Fuel Subsidy Review

Published

on

Photo source: Google

The Nigerian government has unveiled plans to hire an external auditor to review the N2.7 trillion fuel subsidy claims made by the Nigerian National Petroleum Company Limited (NNPCL).

The goal is to assist the Office of the Auditor-General of the Federation (OAuGF) in determining the actual amount owed by the government to NNPCL for fuel subsidies.

According to official records, a forensic audit will focus on NNPCL’s claims from 2015 to 2021.

It aims to verify the N2.7 trillion withheld by NNPCL, with the Director of Home Finance stating that the OAuGF is still working on the matter.

Additionally, the Ministry of Finance’s Procurement Department has already put measures in place to hire an external auditor, who will support the OAuGF in conducting the review.

Advertisement

In the same meeting, the Chairman of the Commissioners’ Forum and Head of Finance from Ekiti State recommended that the audit period be extended to December 2023, given that the audit process has yet to begin.

This suggestion followed the initial proposal to launch the audit four months earlier during the Federation Allocation Accounts Committee’s April 2024 meeting.

Initially, NNPCL claimed that the government owed a total of N6 trillion for fuel subsidies. However, this amount was reduced to N2.7 trillion after a previous audit conducted by KPMG.

The forthcoming audit will cover six years to ensure accuracy and transparency in reconciling the subsidy claims.

This latest development follows the “subsidy is gone” declaration made by President Bola Ahmed Tinubu on May 30, 2023.

Advertisement

Shortly after this announcement, NNPCL’s Group Chief Executive Officer, Mele Kyari, informed reporters that the Federal Government still owed the company N2.8 trillion in outstanding subsidy payments.

According to Kyari, NNPCL has been covering the cost of petrol subsidies through its cash flow, as the government has been unable to make payments.

He highlighted that despite budgetary provisions of N6 trillion in 2022 and N3.7 trillion in 2023 for fuel subsidies, the Federal Government has not made any payments to NNPCL.

The company has had to absorb the cost, which is now an unsustainable financial burden.

Kyari emphasized that the government still owes NNPCL around N2.8 trillion and that the company cannot continue to carry the financial strain of the subsidy regime much longer.

Advertisement

The decision to engage an external auditor is seen as a crucial step towards resolving these financial discrepancies and determining the accurate amount of subsidy claims owed to NNPCL.

The audit is expected to shed light on the actual amount of debt and could potentially influence future subsidy policies and financial arrangements between NNPCL and the government.


 

News

Ekiti Moves Closer to Energy Independence with New Electricity Licenses

Published

on

Photo source: Google

The Governor of Ekiti State, Bioduna Oyebanji, has shared an exciting update on the state’s energy sector.

The governor announced that Ekiti has granted operational licenses to 14 electricity investors as part of a broader strategy to improve the state’s energy infrastructure.

This includes 3 distribution companies, 4 generation companies, 2 mini-grid generation companies, and 5 meter asset providers.

These licenses aim to strengthen power generation, streamline distribution, and ensure more reliable metering for residents, marking a major step forward in Ekiti’s energy development.

Currently, Ekiti receives around 20-25 MW of electricity from the national grid, which is far below the state’s estimated requirement of 120 MW.

Advertisement

This gap has often resulted in power shortages that affect both residents and businesses.

To address this, the state government has set an ambitious target of achieving 130 MW through a robust, locally managed state grid.

This will not only reduce dependency on the national grid but also empower Ekiti with more control over its energy future, fostering sustainability and stability.

The decision to decentralize electricity markets in Ekiti aligns with the 2023 Electricity Law Enactments, which were designed to give states the authority to manage their own electricity markets.

The law enables states to license providers who can meet the specific needs of their local communities, ensuring a more tailored and efficient power supply.

Advertisement

Governor Oyebanji emphasized the importance of this initiative for the future of Ekiti.

He expressed his confidence that this move will stimulate economic growth, create job opportunities, and improve the quality of life for all Ekiti residents.

With a more stable and reliable power supply, businesses in Ekiti will be able to thrive, contributing to the overall economic development of the state.

Additionally, residents will benefit from more consistent electricity, reducing the challenges posed by power outages and improving their daily lives.

Governor Oyebanji thanked everyone who believes in the state’s vision and progress, acknowledging the collective effort required to achieve such ambitious goals.

Advertisement

 

Continue Reading

News

Nigeria’s National Power Grid Collapses Again, Marking the 12th Time This Year

Published

on

Photo source: Google

On Thursday, Nigeria was thrown into darkness as the country experienced another collapse of its national power grid.

This disruption, which occurred at approximately 11:20 a.m., caused a nationwide power outage, affecting millions across the country.

The incident was confirmed by the Nigeria National Grid on X, where they posted, “BREAKING: Another Grid Setback Experienced,” signaling the severity of the situation.

This is the second time the national grid has failed in the past week, bringing the total number of collapses this year to twelve.

The Transmission Company of Nigeria (TCN), which is responsible for the operation and maintenance of the national grid, has yet to provide a detailed statement on the cause of Thursday’s collapse.

Advertisement

However, earlier in the week, TCN attributed a similar incident on Tuesday to a combination of line failures and generator trips, which are often caused by technical faults or mismanagement within the system.

These explanations, though, have done little to quell the growing concerns over the state of the power sector in the country.

In a related development, Nigeria’s Minister of Power, Adebayo Adelabu, had received an investigative report on the persistent grid collapses just the day before.

While the findings of this report have not been made public yet, it is expected to provide critical insights into the underlying causes of the grid’s instability.

This report comes at a time when the Nigerian government is under increasing pressure to find long-term solutions to the nation’s power crisis.

Advertisement

With the power grid collapsing so frequently, the impact on businesses, healthcare, education, and daily life is becoming increasingly severe.


 

Continue Reading

News

22 Miners Feared Dead in Taraba-Adamawa Mining Pit Collapse

Published

on


At least 22 miners are feared dead after a mining pit collapsed at an illegal site in the Gashaka-Gumti National Park, which spans Gashaka LGA in Taraba State and Toungo LGA in Adamawa State. The miners were searching for gold in a restricted area known as Buffa.

Local sources report that all 22 miners are presumed dead. Toungo LGA Chairman Suleiman Toungo confirmed five bodies have been recovered, though he couldn’t specify the total number still buried. The area, despite frequent ranger patrols, is known for continued unregulated mining activities, often carried out at night.

Adamawa Police spokesperson SP Suleiman Nguroje noted recent fatalities from pit collapses, adding that police are working with park authorities to address the illegal mining.


 

Continue Reading

Trending