Senate Probes Banks over $63b Oil Fraud

Image

By Modupe Gbadeyanka

Some banks are in trouble for allegedly conspiring with various international oil companies (IOCs) to swindle the Nigerian government.

Already, the Senate has launched an investigation into this issue and has called on parties involved to appear before it to explain their roles in the alleged mess.

It was alleged that more than $62.9 billion was moved out of the country under suspicious circumstances between August 2009 and December 2014.

The “Investigation of the pre-shipment inspection of export activities in Nigeria” is being conducted by the Senate joint committee on Finance, Trade and Investment, Gas, Petroleum Upstream, Banking, Insurance and other Financial Institutions, Judiciary, Human Rights and Legal Matters, and Customs and Excise.

A document obtained showed the banks were asked to submit copies of certified Nigeria Export Proceed (NXP) issued/or processed by them in respect of all crude oil and gas exported by Nigeria Agip Company Ltd, Chevron Nigeria Limited, Shell Petroleum Dev. Co. Nig. Ltd and their affiliates between April 1996 and December 2016.

The banks are to submit all domiciliary accounts opened and /or closed within the period specified for crude oil and gas exported.

According to The Nation, two banks; Citibank and Standard Chartered Bank, appeared at the investigative joint committee on Thursday. Other banks said to be associated with the export of oil and gas will also appear.

A member of the committee, Mr Yusuf Yusuf, queried why funds brought into the country as oil export proceeds were wholly withdrawn a day after such proceeds were brought.

He said the probe became necessary because the banks should have ensured petroleum products exporters did the right thing by obeying the guidelines and laws of the country.

“It is worrisome that money comes in today, tomorrow the same amount goes out of the country. The practice runs through the statement of account submitted by the banks. The oil companies bring in $20 billion today and tomorrow $20 billion is taken out from the account,” the lawmaker expressed surprise.

“The banks are colluding with multinational oil companies to defraud the country. The government relies on the banks; the banks are now colluding with the multi-national oil companies,” he alleged.

He noted that it was obvious the country was not getting the correct export proceeds from oil and gas exports.

The lawmaker, who insisted that banks had the responsibility to abide by the law, said it was worrisome no indications were made about who paid for oil exports.

He noted that the committee was interested in why same company exports and pays for products without an indication of who actually buys the products and the corresponding bank.

The Nation

Share
Related Stories
Image
21-February-2024

Verod Capital Buys 65% Stake in i-Fitness from CardinalStone

By Aduragbemi Omiyale The popular fitness and gym chain, i-Fitness, now has a new investor and it is Verod Capital Management, a private equity company. Verod Capital has become a major shareholder in i-Fitness, which has branches across the country, including in Lagos and Abuja, courtesy of CardinalStone Capital, another private equity firm. Cardinal Stone divested its 65 per cent stake and this was acquired by Verod Capital in a deal said to be worth about $12 million, according to TechCabal. i-Fitness, valued at $18.5 million, was established in 2015 by Mr Folusho Ogunwale and the organisation has grown to

Image
22-February-2024

NASD Unlisted Security Index Depreciates by 0.77%

By Adedapo Adesanya A 0.77 per cent loss was suffered by the NASD Over-the-Counter (OTC) Securities Exchange on Wednesday, February 21 following profit-taking in three stocks. Aradel Holdings Plc went down by N49.50 during the session to close at N2,476.50 per share versus the previous day’s N2,526.00 per share, Central Securities Clearing System (CSCS) Plc depreciated by 37 Kobo to end the day at N19.63 per unit compared with Tueday’s closing price of N20.00 per unit, and FrieslandCampina Wamco Nigeria Plc deflated by 7 Kobo to settle at N74.43 per share, in contrast to the N74.50 per share it traded

Image
21-February-2024

Oil Prices Slide on Global Demand Worries

By Adedapo Adesanya Oil prices settled lower on Tuesday, with worries about global demand offsetting price support from the Israel-Hamas conflict, causing the Brent futures to lose $1.22 or 1.5 per cent to sell at $82.34 a barrel, as the US West Texas Intermediate (WTI) crude shed $1.30 or 1.4 per cent to trade at $77.04 a barrel. The crude oil market was lower following the quiet trading over the Presidents’ Day holiday in the US and as demand concerns offset ongoing Middle Eastern geopolitical tensions. Shipping has been impacted by escalating attacks on shipping lanes in the Red Sea

Image
20-February-2024

Nigeria Creates Task Force to Combat FX Speculation, Hoarding

By Adedapo Adesanya Nigeria has formed a joint task force, made up of leading law enforcement agencies such as the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), the Nigeria Customs Service (NCS), and the Nigeria Financial Intelligence Unit (NFIU), to combat foreign exchange (FX) speculation and tackle the issues affecting the country’s economic stability. The National Security Adviser’s Office, led by Mr Nuhu Ribadu, in collaboration with the Central Bank of Nigeria (CBN), initiated the joint effort. In a statement on Tuesday, a spokesperson for the NSA office, Mr Zakari Mijinyawa, disclosed that the partnership is

More Stories
Image
01-October-2020

ColdHubs Wins Sustainable Health Food Award

By Adedapo Adesanya Nigerian cold storage startup, ColdHubs, has been named winner of the Sustainable and Healthy Food for All category at the annual Global Maker Challenge, taking home $100,000 in prize money. Each year, the Mohammed bin Rashid Initiative for Global Prosperity runs the Global Maker Challenge, with this year’s four challenges related to the themes of Innovation for Peace and Justice, Sustainable and Healthy Food for All, Innovation for Inclusive Trade, and Climate Change. At its first-ever virtual award ceremony, held at the United Arab Emirates (UAE), four winners and eight runners-up were selected to receive monetary prizes,

Image
13-May-2017

Nigeria Leads 10 Biggest Beer Drinking Countries

By Dipo Olowookere The list of top 10 biggest beer drinking countries in Africa has been released by a market research group called Global Data, formerly known as Canadean and the lead spot was occupied by Nigeria, the most populous nation in the continent. As a result of its population, Nigeria led the chart with 12.28 litres of beer consumed per year. Beer makes up just 16 percent of alcohol consumption in Nigeria, while other drinks make up 84 percent due to the high popularity of home-brewed beverages. Africa is by far the fastest growing region for beer consumption and

Image
15-April-2017

SEC Advises Investors to Register for e-Dividend Payment

By Modupe Gbadeyanka Investors have been told they are required to register for the payment of their dividends electronically. This advice was given by the Securities and Exchange Commission (SEC) as part of measures to curb the growth of unclaimed dividend in the Nigerian capital market. A statement by the capital market watchdog noted that to facilitate the e-Dividend registration exercise, it has “provided a platform for all investors that are yet to register to search for their names in the portal.” SEC said further that “members of the investing public are therefore, called upon to ascertain their registration status”

Image
29-August-2023

Oil Appreciates on China’s Latest Step to Prop Economy

By Adedapo Adesanya Oil appreciated on Monday after China took steps to bolster its slumping economy, with Brent increasing by 65 cents or 0.8 per cent to $85 per barrel, as the US West Texas Intermediate (WTI) gained 45 cents or 0.6 per cent to sell for $80.28 per barrel. The focus of the oil market was on China’s actions to support its economy as the world’s largest economy halved the stamp duty on stock trading effective Monday in the latest attempt to boost the struggling market. According to Reuters, the finance ministry, in a brief statement on Sunday, said

Image
31-March-2021

NEXIM Shops for $50m for SMEs

By Ahmed Rahma The Nigerian Export-Import Bank (NEXIM) has collaborated with the African Export-Import Bank (Afreximbank) to mobilise the sum of $50 million to support Small and Medium Enterprises (SMEs) in Nigeria. According to NEXIM, the $50 million Project Preparation Fund for Nigeria is for the provision of technical assistance to bankable SMEs, especially those promoted by women and youths. The bank’s Managing Director, Mr Abubakar Bello, disclosed at the inauguration of Women and Youth Export Development Fund with the theme Unlocking Export Market Opportunities For Women and Youths that, “The fund was part of activities mapped out by both

Image
05-August-2017

Executive Order 003 Will Boost Economy–Dambazau

By Dipo Olowookere Minister of Interior, Mr Abdulrahman Bello Dambazau has disclosed that the implementation of Executive Order 003 would enhance the economy and save foreign exchange for the country. Executive Order 003 requires all Ministries, Departments and Agencies of government to grant preference to local manufacturers of goods and service providers in their procurement of goods and services. Mr Dambazau, while receiving the Minister of State for Industry, Trade and Investment, Hajia Aisha Abubakar, this week, pledged his Ministry’s commitment to implementation of the order. He noted that it was important for government to partner with the private sector

Image
29-August-2016

Plateau Partners Firm To Build Fertilizer Plant

By Modupe Gbadeyanka A memorandum of understanding (MoU) has been signed between the Plateau State government and Oil and Chemical International, a member of the Duncan Group of companies, to set up a 40 tonnes fertiliser blending plant in Foron in Barkin Ladi local government area of the state. Signing the deal on behalf of the state government, Commissioner of Commerce, Ezekiel Daju, disclosed that the move was another milestone in the Governor Simon Lalong’s-led administration in diversifying economy of the state, especially when federal allocation has dropped drastically. He described the deal as laudable, saying it would boost the

Image
11-August-2018

ENGIE Targets 8 Hybrid Solar Power Plants in Gabon

By Dipo Olowookere ENGIE has signed an agreement with CDC, the Gabonese financial institution Caisse des Dépôts et Consignations, to deploy eight hybrid solar power plants in Gabon, representing a combined capacity of 2.2 MW. The implemented solution was developed by ENGIE’s subsidiary, Ausar Energy in collaboration with CDC, the Gabonese Ministry of Energy, and the Gabonese energy and water company Société d’Énergie et d’Eau du Gabon (SEEG) and means that solar energy can be used in eight locations that are currently supplied by oil-fired thermal power stations. With construction set to begin in a few weeks, this project will

Ad
Ad
Recent Stories
Image
22-February-2024

Dangote Sugar to Borrow N50bn from Commercial Paper Sales

By Aduragbemi Omiyale The management of Dangote Sugar Refinery Plc is requesting about N50 billion from capital market investors for its short-term working capital and funding requirements. The sugar miller will get the funds from investors through the sale of commercial papers and has promised to repay in about nine months’ time. The CP sales will be conducted under its N150 billion commercial paper issuance programme approved by the regulatory authorities. It is the first series the company is selling this time and it specifically has a tenor of 266 days with a discount rate of 15.92 per cent and

Image
22-February-2024

NASD Unlisted Security Index Depreciates by 0.77%

By Adedapo Adesanya A 0.77 per cent loss was suffered by the NASD Over-the-Counter (OTC) Securities Exchange on Wednesday, February 21 following profit-taking in three stocks. Aradel Holdings Plc went down by N49.50 during the session to close at N2,476.50 per share versus the previous day’s N2,526.00 per share, Central Securities Clearing System (CSCS) Plc depreciated by 37 Kobo to end the day at N19.63 per unit compared with Tueday’s closing price of N20.00 per unit, and FrieslandCampina Wamco Nigeria Plc deflated by 7 Kobo to settle at N74.43 per share, in contrast to the N74.50 per share it traded

Image
22-February-2024

Naira Appreciates at Official Market, Falls at Black Market

By Adedapo Adesanya The Naira appreciated against the United States Dollar in the official market and the and the peer-to-peer (P2P) windows of the foreign exchange (FX) market but depreciated in the parallel market on Wednesday, February 21 as several scare tactics to ease the weakening local currency continues. In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the domestic currency gained 0.6 per cent or N8.66 on the greenback to close at N1,542.58/$1 compared with the previous day’s N1,551.24/$1. However, the Naira maintained stability against the Pound Sterling and the Euro in the spot market in the midweek session at

Image
22-February-2024

Crude Oil Jumps as Geopolitical Tensions Persist

By Adedapo Adesanya Crude oil appreciated on Wednesday as geopolitical tensions continued in the Middle East and traders assessed signs of near-term supply tightness. Brent crude was up by 69 cents or 0.8 per cent to $83.03 a barrel while the US West Texas Intermediate (WTI) crude jumped by 87 cents or 1.1 per cent to settle at $77.91 per barrel. Houthi attacks on commercial vessels in the Red Sea and Bab al-Mandab strait have continued to stoke concerns over freight flows through the critical waterway. The Iran-aligned Yemeni Houthis have carried out repeated drone and missile strikes since November in

Image
22-February-2024

Investors Recover N165bn as FBN Holdings, BUA Cement, Others Gain

By Dipo Olowookere The bulls recaptured the Nigerian Exchange (NGX) Limited on Wednesday after the bears dominated for two straight days as a result of panic selling due to the macroeconomic environment, especially with the poor performance of the Naira in the foreign exchange (FX) market. During the midweek session, the local bourse finished higher by 0.30 per cent on renewed bargain-hunting activities by investors. This raised the market capitalisation of the domestic exchange by N165 billion to N55.464 trillion from N55.299 trillion, as the All-Share Index (ASI) grew by 301.71 points to 101,362.38 points from 101,060.67 points. Business Post

Image
21-February-2024

Tinubu Appoints Kemi Nanna Nandap as Comptroller-General of Immigration

By Modupe Gbadeyanka The Deputy Comptroller-General (DCG) of the Nigeria Immigration Service (NIS), Ms Kemi Nanna Nandap, has been elevated to the post of the Comptroller-General of the agency. This followed her appointment by President Bola Tinubu, according to a statement issued by his spokesman, Mr Ajuri Ngelale, on Wednesday. The presidential aide disclosed in the statement today that the appointment of Ms Nandap will take effect from Friday, March 1, 2024. She is taking over from Mrs Caroline Wura-Ola Adepoju, whose term in office expires on February 29, 2024, the disclosure said. “President Bola Tinubu has approved the appointment

Image
21-February-2024

AFC to Pump $40m Into African Medical Centre of Excellence Abuja

By Adedapo Adesanya  African instrumental infrastructure solutions provider, Africa Finance Corporation (AFC), has signed an equity investment term sheet, pledging up to $40 million towards the construction of an Abuja-based hospital, the African Medical Centre of Excellence (AMCE). The quaternary-level multi-specialty medical institution developed by the African Export-Import Bank (Afreximbank) in collaboration with King’s College Hospital, London, aims to revolutionise healthcare in Africa. Hospitals across West Africa struggle with funding, lack of essential resources, and limited access in rural areas. This flagship facility in Abuja is a key part of Afreximbank’s network of healthcare facilities, actively countering brain drain, reducing

Image
21-February-2024

Oyo Reopens Shri-Balaji After Closure Over Pollution

By Aduragbemi Omiyale The industrial company sealed earlier this month nonconformity and adherence to environmental laws of Oyo State, Shri-Balaji Industries Limited, has been reopened. The facility was unsealed on Wednesday on the directive of the Commissioner for Environment and Natural Resource, Mr Abdulmojeed Mogbonjubola. The company, which engages in the recycling of waste tyres to produce Pyrolysis oil and carbon black and steel wire as by-products, was closed by the state government to protect the lives of residents of the area. A statement made available to Business Post disclosed that for it to be reopened, Shri-Balaji paid a fine

Image
21-February-2024

FG to Restructure, Recapitalise Bank of Agriculture for Better Value

By Adedapo Adesanya The federal government has revealed plans to recapitalise and restructure the Bank of Agriculture (BOA) to bolster Nigeria’s agricultural sector and achieve national food security. This was one of the core revelations made by the Vice President, Mr Kashim Shettima, during the first meeting of the National Council on Privatisation (NCP) for the year 2024 at the Presidential Villa, Abuja on Tuesday. He said there is a central role that BOA could play in achieving national food security, citing its extensive branch network across all senatorial districts in the country. Mr Shettima, however, expressed concern about the

Image
21-February-2024

Foundation Urges Nigerians to Adopt Waste Management Hierarchy

By Aduragbemi Omiyale A recycling organisation, Turn Plastic Recycling Foundation, has encouraged Nigerians to embrace the waste management hierarchy to make the country a zero-waste society. The Project Manager for the firm, Mr Leo Nwofa, while giving a summary of the project journey in the past two years of the foundation, said to save the planet, people must adopt the system of proper waste disposal for recycling after use. The waste management hierarchy gives top priority to waste prevention, followed by reuse, recycling, recovery and finally disposal. Speaking at an event to mark the second anniversary of Turn Plastic Recycling