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Forensic Experts to Trace Missing $20Bn Oil Money

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Forensic experts should examine the state of the federation account, the federal government suggested yesterday.

This is coming as Sanusi Lamido Sanusi, governor; Central Bank of Nigeria (CBN) insisted that oil money was missing.

Sanusi said that the outstanding $6 billion given by NNPC to the NPDC should have gone to the federal government, but that it disappeared into private hands from there, and offered to bring in lawyers to defend that claim on the basis of three advisory opinions the CBN has already received.

The apex bank governor told the investigative hearing by the Senate Committee on Finance into the alleged missing $20 billion oil money that despite the explanation tendered by Ngozi Okonjo-Iweala, finance minister, there is an outstanding $20 billion between NNPC oil shipments and what it paid to government.

Testifying earlier, Okonjo-Iweala aligned herself with the Ministry of Petroleum Resources and the NNPC, despite declaring her Ministry lacked the capacity to validate the claims contained in NNPC documents from the Petroleum Products Pricing Regulatory Agency (PPPRA) showing how the initial outstanding $10.8 billion was spent. 

She said an independent forensic team was needed to examine the documents.

Such an audit by independent experts will reveal whether or not $20 billion is missing – as alleged by Sanusi.

Senator Ahmed Makarfi, chairman Senate Commitee on Finance, urged the audit panel to do the assignment in one month.

The committee, he said, would reconvene on February 20, for legal advice.

Addressing members of the committee in Abuja, Finance Minister Ngozi Okonjo-Iweala said: “on the $10.8 billion which we had all originally agreed was the shortfall from the NNPC, they have produced documents certified by PPPRA with background documentation to back it, but we do not feel that the reconciliation committee has the expertise and then we are calling for a forensic audit of these papers in order to lay to rest what the shortfalls may be, what the NNPC owes or does not owe the Federation Account.”

On the $20 billion, which Sanusi insisted was missing, Mrs Okonjo-Iweala said: “On the additional charges made by the CBN, the Reconciliation Committee feels that the matter ranges around legal issues and that it, therefore, requires legal experts to answer the questions of who owns these proceeds – NNPC or the Federation Account.”

However, the minister revealed that “as of December 2013, the cumulative unreconciled shortfall from NNPC payments stood at N1.792 trillion”.

She added: “For the $10.8 billion, this is the shortfall as at July 2013, which mirrors the period the CBN originally looked at. Amount withheld for subsidy, $8.766 billion; holding cost for strategic reserves, $0.499 billion; crude oil and product losses, $0.76 billion; pipeline management cost $0.905 billion for a total of slightly more than the $10.8 billion we talked about. The data presented were all certified by PPPRA as being accepted by them and signed upon.”


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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