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Oil marketers withhold N431bn levies— Auditor-General

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority has come under fresh scrutiny after the Office of the Auditor-General for the Federation uncovered over N432bn in unpaid debts, statutory levies and other outstanding obligations involving petroleum marketers.

The bulk of the liabilities, N431.01bn, consisted of legacy National Transport Average and bridging allowance debts owed to the petroleum sector regulator by marketers, according to the recently released Auditor-General’s 2024 Annual Report on Non-Compliance and Internal Control Weaknesses in Ministries, Departments and Agencies.

The report obtained from the OAGF office and analysed by our correspondent on Monday disclosed that Federal Government Ministries, Departments and Agencies were linked to at least N1.39tn in recurring financial irregularities, control failures and breaches of public finance regulations in 2024.

The amount, representing the cumulative value of 30 monetary cross-cutting issues identified by the Office of the Auditor-General for the Federation, underscores the scale of recurring weaknesses in the management of public funds across government institutions.

The largest component of the audit queries was N882.75bn in unrecovered debts involving six MDAs, accounting for about 63 per cent of the total amount implicated in the cross-cutting issues.

The Transmission Company of Nigeria accounted for the largest portion of the unrecovered debts, with N446.70bn, according to the report. The Nigerian College of Aviation Technology, Zaria, recorded the least amount among the affected agencies, with N935.56m.

For the NMDPRA, the report showed that the massive outstanding debt had remained substantially unresolved years after it was incurred, with auditors stating that as of August 2025, there was no evidence that the position had changed.

The N431.01bn debt dwarfed other financial irregularities identified at the authority, including N1.06bn in outstanding statutory levies owed by 14 oil marketers and N217.84m in unremitted Industrial Training Fund contributions.

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An analysis of the audit findings showed that the N431.01bn legacy debt accounted for virtually all the N432.29bn in major outstanding financial issues identified in the sections of the report relating to the NMDPRA.

The Auditor-General said the N431.01bn represented accumulated indebtedness arising from the National Transport Average, bridging allowance and legacy obligations.

A breakdown of the debt showed that the Depot and Petroleum Products Marketers Association of Nigeria accounted for N315.18bn, comprising N132.56bn in bridging allowance debt and N182.62bn in National Transport Average obligations.

The Major Energy Marketers Association of Nigeria accounted for another N106.30bn, while N9.53bn represented an unissued legacy debt in promissory notes by the Federal Ministry of Finance.

The report stated, “Section 47(1) of the Petroleum Industry Act (2021) states, “The Authority shall maintain a Fund (in this Act referred to as “the Authority Fund”) into which money accruing to the Commission shall be paid. Audit observed that: i. The sum of N431,012,935,018.88 was the National Transport Average, legacy debt and bridging allowance indebtedness to NMDPRA as at May 2023.”

It added that, “As at the time of this audit in August, 2025, nothing came to the knowledge of the auditors to have changed the position of the amount of the indebtedness, and There was no justification provided for non-recovery of the third parties’ indebtedness to the Authority.”

The auditors further said, “The above anomalies could be attributed to weaknesses in the internal control system at the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Abuja.

The Office of the Auditor-General attributed the anomaly to weaknesses in the NMDPRA’s internal control system and warned that the situation exposed government funds to possible loss and diversion.

Although the NMDPRA acknowledged the outstanding liabilities, the authority described the N431.01bn as legacy receivables due from marketers.

Management said efforts were underway to reconcile the balances with the affected companies.

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“Management notes that the sum of N431,012,935,018.88 represents a legacy receivable due from marketers. Efforts have been made to engage the affected marketers for reconciliation and sign-off of the outstanding balances,” the NMDPRA said.

However, the Auditor-General rejected the explanation. “The management’s response to the issue has been noted; however, it is deemed unsatisfactory. Consequently, the findings remain valid until the recommendations are implemented,” the report stated.

The auditors recommended that the Authority Chief Executive should explain the non-recovery of the N431.01bn to the Public Accounts Committees of the National Assembly and recover and remit the money to the Treasury.

The report also warned that sanctions could apply for failure to collect and account for government revenue and gross misconduct if the recommendations were not implemented.

In another finding, the Auditor-General said 14 oil marketers owed N1.06bn in unpaid statutory levies on petroleum products. Under the Petroleum Industry Act, the NMDPRA is entitled to collect 0.5 per cent of the wholesale price of petroleum products sold in Nigeria from wholesale customers as part of its funding sources.

The audit found that N1.06bn remained outstanding as of January 24, 2025. “The sum of N1,059,622,848.29 was standing as the amount of indebtedness for the year 2024, by fourteen oil marketers,” the report stated.

The amount included penalties imposed on defaulting marketers, excluding Premium Motor Spirit. The NMDPRA, however, said it had recovered N3.19bn from total outstanding levies of N4.25bn covering January to December 2024.

The authority said, “Following reconciliation exercises, the Authority recovered N3.19bn of the N4.25bn outstanding 0.5 per cent Authority Levy for January-December 2024. The remaining balance of N1.06bn is being pursued through Demand Notices issued to the defaulting marketers.”

The auditors sustained the finding to the extent of the N1.06bn still outstanding and directed the authority to recover and remit the money to the Treasury. The report further found that the NMDPRA failed to remit N217.84m to the Industrial Training Fund in 2024.

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According to the audit, the authority’s payroll for the year stood at N21.78bn, making it liable to remit one per cent of its total payroll to the ITF under the Industrial Training Fund Act. “The unremitted 1 per cent statutory Industrial Training Fund from the gross salary in the payroll of the Authority amounted to N217,841,922.18,” the report said.

The NMDPRA said it was in the process of settling the obligation. “The Authority is in the process of settling the outstanding 1 per cent Industrial Training Fund obligation. Evidence of payment will be submitted to the Office of the Auditor-General for the Federation upon completion of the remittance,” management said.

But the Auditor-General again described the response as unsatisfactory and maintained that the finding would remain until the money was remitted.

The findings come amid growing scrutiny of government agencies over revenue collection and remittance, particularly following repeated calls for stricter accountability in the management of public funds.

The NMDPRA was established under the Petroleum Industry Act 2021 to regulate Nigeria’s midstream and downstream petroleum sectors, including petroleum product distribution, transportation, storage and marketing.

The audit report now places renewed pressure on the authority to recover billions of naira tied up in legacy petroleum sector debts while strengthening its internal controls to prevent further revenue leakages.

However, some major oil marketers denied owing the agency when contacted for comments on the development, as they insisted that their obligations to the authority had been cleared.

Source: punchng.com

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Nigeria, Indonesia trade tops $3bn annually — envoy reveals

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Nigeria and Indonesia’s bilateral trade has consistently exceeded $3bn annually, the Indonesian Ambassador to Nigeria, Bambang Suharto, has said.

The ambassador said the trade relationship had positioned Nigeria as one of Indonesia’s foremost trading partners in Africa, while calling for greater economic cooperation between both countries.

“Our bilateral trade has consistently surpassed USD 3 billion annually, cementing Nigeria’s position as one of Indonesia’s foremost trading partners in Africa,” he said.

Suharto said Nigeria supplied an essential source of energy contributing to Indonesia’s energy security.

“Nigeria supplies the essential source of energy that contributes to Indonesia’s energy security, while Indonesian products have become household staples for Nigerian consumers and businesses,” Suharto said.

He said some Indonesian products had also become established in Nigeria through local production and Nigerian workers, describing the development as evidence of the value of economic partnerships beyond the exchange of goods.

He added, “Yet, there remains considerable room to grow. Together, Indonesia and Nigeria represent a vibrant market of more than 550 million people, defined by young populations, dynamic businesses, and substantial natural and human resources.”

According to him, the combined economic potential provided a foundation for expanding trade, investment, technological exchange and employment opportunities.

Suharto said Indonesian companies operating in Nigeria were contributing to the bilateral relationship through investment, job creation and corporate social responsibility initiatives.

“Our ultimate ambition is not simply to trade more, but to cultivate a resilient partnership in which businesses on both sides thrive, local industries develop, and our people directly reap the benefits of the opportunities we create together,” he said.

He said Indonesia also attached importance to educational and cultural exchanges with Nigeria, noting that its scholarship programmes had enabled Nigerian students to study in Indonesia and establish lasting relationships.

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In his remarks, the Permanent Secretary, Ministry of Foreign Affairs, Ambassador Dunoma Umar Ahmed, said Nigeria and Indonesia had considerable scope to deepen their economic partnership.

Ahmed said Nigeria was particularly interested in Indonesia’s experience in industrialisation, manufacturing, digital transformation, infrastructure development, agriculture, maritime development and the expansion of small and medium-sized enterprises.

“Nigeria is particularly interested in expanding cooperation that can support the development of local productive capacity, strengthen value chains, promote technology transfer, and attract sustainable investment,” he said.

The permanent secretary urged greater interaction between the private sectors, chambers of commerce, financial institutions and business communities of both countries.

He identified agriculture and agro-processing, manufacturing, energy, infrastructure, pharmaceuticals, the digital economy and creative industries as areas with significant potential for increased trade and investment.

Ahmed also called for efforts to address practical constraints to bilateral commerce, including market access, business information connectivity and the facilitation of contracts between businesses in both countries.

“Nigeria is particularly interested in expanding cooperation that can support the development of local productive capacity, strengthen value chains, promote technology transfer, and attract sustainable investment.

“Our two countries should therefore continue to encourage greater interaction between our private sectors, chambers of commerce, financial institutions, and business communities. There is significant potential for increased trade and investment in areas including agriculture and agro-processing, manufacturing, energy, infrastructure, pharmaceuticals, the digital economy, and the creative industries,” Dunoma said.

Source: punchng.com

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Airlines face disruptions as fuel costs soar

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Recent disruptions that stranded passengers, particularly in Abuja, have been linked to debts airline operators owe fuel marketers, even as operators lament the rising cost of Jet A1 aviation fuel.

Passengers who bought Air Peace tickets last Friday spent the night at the Abuja airport following flight cancellations and delays.

The PUNCH learnt that on Friday alone, Lagos, Maiduguri and Asaba-bound passengers remained at the Nnamdi Azikiwe International Airport as the airline delayed boarding for several hours and cancelled a number of flights.

Passengers who spoke with our correspondent claimed that the airline had failed to provide reasons for the disruptions.

Our correspondent gathered that Lagos-bound passengers scheduled to take off from Abuja at about 4:00 pm, as well as another set scheduled to depart earlier, remained at the airport until late that night.

While Lagos-bound passengers left the same night, Asaba- and Maiduguri-bound passengers spent the night at the airport, leading to a series of protests within the aerodrome.

Meanwhile, an airport source who refused to give her name for fear of reprimand had told our correspondent at the time that the passengers might still be airlifted before midnight to avoid disruptions to Sunday’s operations.

The source said, “Truly, many passengers sat helplessly at the airport. I learnt from the workers that it was a fuel-related issue, but only the airline can really explain what happened.”

When contacted, the spokesperson for the Nigeria Civil Aviation Authority, Michael Achimugu, told our correspondent that he gathered that the airline had been speaking with the passengers as events unfolded. He confirmed that issues relating to a lack of fuel had grounded the airline’s aircraft.

Achimugu did not, however, provide further information on why the airline was experiencing a shortage of fuel.

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Achimugu said, “Yes, my CPOs have reported to me that the airline has been unable to fly the passengers because of fuel-related issues. I also learnt they have been updating the passengers, but you know when passengers get angry, they may not even listen to whatever information they are being provided with.”

When asked what exactly the issue was, he said, “What my CPOs told me is what I have told you. When we have more information, we will let you know.”

Efforts to speak with the airline’s spokesperson, Efe Osifo-Whiskey, were unsuccessful. He neither picked up his calls nor responded to text messages seeking clarification at the time.

Also, in a statement by the airline, Air Peace said the delay was caused by the unavailability of Jet A1 aviation fuel. Air Peace added that the fuel shortage also affected other airlines.

The Air Peace statement read partly, “The initial delays to our Abuja operations were occasioned by the unavailability of Jet A1 aviation fuel, which affected Air Peace and other airlines operating from the Abuja airport. Upon the availability of fuel, our affected flights commenced operations accordingly.

“However, our Abuja-Maiduguri service could not subsequently operate as planned because the tower in Maiduguri, which had given an extension for our flight to come in, later came back, as at the time of our calling for boarding, to state that the airport had become VFR and would no longer fly beyond sunset.”

While apologising to passengers, Air Peace added, “Throughout the disruption, passengers were duly informed of the delays and provided with refreshments. Following the cancellation, affected Maiduguri passengers were also provided with hotel accommodation, with arrangements made to operate the flight the following day.

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“We sincerely regret the inconvenience caused to our esteemed passengers and appreciate their patience and understanding. At Air Peace, the safety and wellbeing of our passengers remain paramount, and we will continue to prioritise these considerations in all our operations.”

However, sources among marketers said the product was available, although at a higher price. One of the sources told our correspondent that, “Airlines may have faced disruptions because a number of them were not supplied the product because they have refused to clear outstanding. They are owing in the millions.

“The truth is some are owing, and they won’t expect continuous delivery while they are yet to pay what they are owing.”

An airline source who also refused to give his name told our correspondent that a litre of Jet A1 currently sells for about N2,130 in Lagos and Abuja, while the price ranges between N2,180 and N2,230 per litre at airports outside the two major aviation hubs, depending on the location.

The source said although aviation fuel was available, the major challenge confronting airlines was the high cost of procuring the product, which he said had continued to drive up their operating expenses.

He added that the situation was particularly difficult for indigenous carriers because most of their revenues were generated in naira, while a substantial portion of their operating costs was either dollar-denominated or linked to foreign exchange.

According to the source, the high cost of operations has left several indigenous airlines struggling to remain in business, with some having to source funds from other areas to meet their aviation fuel obligations.

He called on the government to intervene in the situation to prevent total collapse of the operating carriers.

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Also, the Managing Director of Aero Contractors, Ado Sanusi, confirmed that the product is available in the country, dismissing the allegation of its scarcity. He, however, agreed that the cost of the product remained a major concern for operators.

Sanusi, who spoke against the backdrop of concerns over Jet A1 availability, said the emergence of the Dangote refinery has helped in making the product available. According to him, Jet A1 currently sells for about N2,000 per litre in Lagos, while the price is slightly higher outside Lagos by approximately N100 per litre.

He said: “I am not aware of the scarcity of aviation fuel in Nigeria. With the Dangote refinery, how can we experience scarcity of the product locally? The only problem is that it is expensive to purchase. Presently, the product goes for N2,000 per litre in Lagos, while it is slightly more expensive outside Lagos with about N100 difference.”

Sanusi also clarified that Aero Contractors was not indebted to aviation fuel marketers, saying the airline had a policy of settling its fuel bills as soon as they were presented.

“I can’t comment on any other airline’s debts, but one thing is sure: at Aero Contractors, we are not indebted to fuel marketers. We pay all our bills as and when due. For clarity’s sake, what I am saying is that once the bill is submitted to us, we settle it immediately at Aero Contractors. That’s the way we work here,” he said.

Source: punchng.com

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Thales to develop Nigeria’s new satellite

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Thales Alenia Space has signed a contract with the Federal Government-owned NIGCOMSAT Ltd to build NigComSat-2A, a new geostationary telecommunications satellite that will boost digital connectivity across Africa.

In a release on Wednesday, the firm said it signed the deal in Cannes, France, on September 14,  2026.

It noted that the French-Italian joint venture, owned 67 per cent by Thales and 33 per cent by Leonardo, will develop the satellite to deliver high-quality television broadcasting, reliable broadband internet and modern digital services including voice calls and streaming.

According to the release, NigComSat-2A, with a launch mass of nearly four tonnes, will cover West and Central Africa through to Southern Africa.

It is designed to improve access in underserved and remote communities where terrestrial networks remain limited. Its expected in-orbit service life exceeds 15 years and will be based on Thales Alenia Space’s Spacebus B2 platform.

NigComSat’s Managing Director and Chief Executive Officer, Nkechi Egerton-Idehen, described the contract as a major step forward for Nigeria.

“The signing of this contract represents a bold step in Nigeria’s journey toward digital transformation,” she said.

“NigComSat-2A will not only strengthen our nation’s satellite communications capacity but also expand access to reliable broadband and digital services for millions of Africans, especially in underserved and remote communities. This project underscores NIGCOMSAT’s commitment to driving connectivity, fostering innovation, and enabling economic growth across the continent. We are proud to partner with Thales Alenia Space in delivering a satellite that will empower Africa’s digital future.”

Also, the President and Chief Executive Officer of Thales Alenia Space, Hervé Derrey, welcomed the partnership, saying, “I would like to thank NIGCOMSAT for placing their trust in our company.

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“NigComSat-2A geostationary satellite will enable NIGCOMSAT to strengthen its competitive position by delivering reliable, high-quality services that meet the growing demand for connectivity and digital content worldwide. This announcement also underscores the success of our Spacebus B2 product line, renowned for its reliability, robustness and time-to-market efficiency.”

NIGCOMSAT Ltd, established on  April 4, 2006, under the Federal Ministry of Communications, Innovation and Digital Economy, owns and operates Nigeria’s geostationary communications satellites. Its current satellite, NigComSat-1R, launched in December 2011, was the first of its kind in Sub-Saharan Africa.

The new satellite is expected to support Africa’s expanding digital economy by providing greater flexibility and resilience in communications infrastructure, particularly in areas where ground-based networks are difficult to deploy.

Officials said it would contribute to digital inclusion, economic opportunity and wider access to information across the continent.

Source: punchng.com

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