Connect with us

Business

CNG: States race to cut transport fares, read details

Published

on

As the Federal Government moves to deliver measurable reductions in transportation costs from October 1, states are adopting different approaches to the Compressed Natural Gas initiative, with some already operating subsidised transport services while commercial operators in several others complain about inadequate refuelling infrastructure, high conversion costs and long queues at existing stations.

The uneven rollout has raised questions about the ability of transport operators and state governments to deliver cheaper fares across the country within the timeline set by President Bola Tinubu.

The President, after meeting the 36 state governors on August 27, announced an implementation committee for the National Affordable CNG Transit Programme under the Nigeria Governors’ Forum, chaired by Governor AbdulRahman AbdulRazaq.

In an update on Saturday, Tinubu urged states to work with transport unions and commercial operators, support vehicle conversion and fleet deployment, and ensure that savings from cheaper energy were passed on to commuters through lower fares. The Presidency said more than 120,000 vehicles had been converted, with over 400 certified conversion centres and more than 90 CNG refuelling stations across the country.

But while the Federal Government says the infrastructure is expanding, transport operators in some states say the available facilities remain inadequate to support widespread conversion.

The challenge is particularly evident in areas where motorists already using CNG spend several hours waiting to refuel.

CNG queues

In Lagos, CNG queues have continued to be reported at some filling stations, including the NIPCO facility at Ibafo along the Lagos-Ibadan Expressway. At about 9:30 pm during one such visit, buses, cars and trucks were seen waiting to buy CNG, with the queue extending towards the highway.

A commercial driver, Saheed, said the scarcity of stations was forcing operators to spend hours waiting for the product.

“We have been here since 7:30 pm. My bus is just getting close to the pump. The reason for this queue is because we have a few CNG stations along this axis. Some have left to go and buy petrol, but N1,400 is too much for a commercial driver. That’s why you see my buses here,” he said.

A commuter who expressed frustration with the queues said the delays were discouraging some passengers from using CNG-powered buses. “This is why I don’t like boarding CNG buses. Aside from asking to disembark from the bus, they will also delay your journey by staying in the queue,” the commuter said.

Similar queues have been reported around Mowe and Ibafo, as well as at NNPC Ilasamaja and NIPCO Mobil on Ajegunle Road. For some commercial operators, the problem is not only the availability of CNG but also the cost of converting their vehicles.

A commercial driver, Musa Kazeem, said he had considered converting his vehicle but was discouraged by the cost and the prospect of spending hours at refuelling stations.

“I planned to convert my vehicle last month, but they told me to look for N800,000 or N1m, depending on the size of the cylinders I want. Where will I get that? Another issue is, after doing the conversion, I will have to stay in a long queue for hours to buy the product. It now looks as if the CNG stations inherited the petrol queues we used to have before the Dangote refinery became operational,” he said.

Another concern among some motorists and passengers is safety. A middle-aged man, Oladeinde Lekan, said he remained worried about the possibility of CNG-related accidents despite government assurances about safety.

The shortage of stations has also attracted concern from transport industry leaders.

NARTO speaks

The National Association of Road Transport Owners National President, Yusuf Othman, said the queues were costing operators valuable time.

“The queues in CNG stations are really costing us time, because time is money. And this is because of the non-availability of refilling stations. The stations are not many; therefore, because of those long queues, we lose a lot of time and money,” he said.

Othman, however, said more stations were being developed and that increased infrastructure would gradually reduce the queues.

“There are a lot of CNG stations coming up. The government is intervening through the Midstream and Downstream Gas Infrastructure Fund. That will go a long way in having many stations, and with those many stations, of course, all those queues will reduce. You know, a lot of people are just keying into CNG. They are not used to it, but it’s gradual,” he said.

He added that despite the difficulties associated with the rollout, CNG remained cheaper than petrol.

“As it is now, CNG is the way to go. It’s clean energy, and it’s cheaper. The only problem is the queue, and when we have more stations, transporters will have no choice. Usually, people are susceptible to change. They don’t accept change easily. But then, this is a change that is coming with gains; because we are going to save a lot of money in the purchase of CNG as against petrol or diesel,” Othman said.

See also  Global markets surge on US rate hopes

Situation across states

The situation in the various states shows the contrast between existing subsidised transport schemes and the slower adoption of CNG by private commercial operators.

In Plateau State, the government said it was already providing one of the cheapest city transport services in the country through its social intervention programme.

The Commissioner for Transport, Davou Jatau, said the government bus service charged N200 for journeys covering between 18km and 20km within Jos.

“Within a short time, we have a transportation system within the city centre that compares to no other state in Nigeria in terms of rating and affordability. You can quote me anywhere; there is no state in Nigeria that charges only N200 for between 18km and 20km distance coverage,” he said.

He said the programme was not designed to make a profit. “Since the removal of fuel subsidy, a journey from Zawan Junction in Jos to a place like Terminus cost between N1,000 and N1,400 in a taxi, but you have a government bus that picks you up for just N200. On a return trip, that is just N400,” Jatau said.

He added that the savings made by commuters could provide additional disposable income for households. However, the Chairman of NTA Park, Jos, Alhaji Ibrahim Maikudi, said the Federal Government’s CNG programme had not translated into tangible benefits for transport operators in Plateau.

“They once approached us, took our plate numbers and everything, but nothing has happened. In Plateau State, for instance, there is no station where you have a CNG vehicle that you go and buy CNG in the Plateau completely,” he said.

Maikudi said some CNG buses supplied to the state were parked because there was no station where they could refuel. He also argued that the government’s subsidised buses had limited coverage, with the service concentrated around Jos-Bukuru.

In Kaduna State, however, the CNG programme has already become part of the state’s mass transit system. The state government said its free CNG bus service had been operating since July 2025, after the inauguration of 100 CNG buses.

The Commissioner for Information and Culture, Malam Ahmad Mayaki, said the buses operated on eight routes with about 200 bus stops. “Kaduna is the only state offering free services in the whole of Nigeria. Other states offer different forms of subsidised costs; some offer 50 per cent, while others offer certain percentages.

“Even the FCT, where the Federal Government is partnering with the NURTW, is not offering it free. Kaduna is the only state providing free services to students, civil servants, traders, artisans and the entire citizens of the state,” he said.

Mayaki said the state government had directed that the service continue indefinitely. “The government has directed that these free services should continue indefinitely. There is no window, and there is no stopping; it is indefinite,” he said.

But in Gombe State, a transport operator said the infrastructure remained inadequate, particularly for long-distance journeys. “Gombe now has CNG, which is good for town services, but for long-distance transportation, we don’t have enough infrastructure,” the operator said.

He explained that gaps in refuelling facilities could make long-distance journeys difficult for CNG-powered vehicles. “If you want to travel to Abuja and return the following morning, you could spend six, seven or even eight hours in a queue waiting to refuel. So, up to now, we need more infrastructure before CNG becomes more feasible,” he said.

According to him, plans were being made to establish about 30 CNG substations across Gombe State, potentially providing one at each local government headquarters.

He also identified conversion costs as another major barrier. “You know the economic situation in Northern Nigeria. How many people can afford between N750,000 and N800,000 to convert their vehicles to CNG?” he asked.

The Managing Director of Gombe State Transport Service, Dr Sani Sabo, agreed that the initiative could reduce transportation costs but said infrastructure expansion would take time.

“The policy itself is very good. We have done the analysis, and it can reduce the cost of transportation and fuel. However, it will take time for the infrastructure to cover the necessary locations,” he said.

In Jigawa State, commercial drivers and transport owners said the Federal Government’s target would be difficult to achieve without stations and conversion centres.

An official of the National Association of Transport Owners, Muhd Mudi, said, “The government is just making promises in Abuja. Where are the CNG stations in Jigawa? Where do you want us to get gas? This policy cannot work without stations and conversion centres.”

See also  Presidency eyes NNPC shake-up as oil output falters

He also questioned how transport fares could be reduced if operators continued to face high costs for fuel, spare parts and vehicle maintenance.

Zamfara State faces a similar infrastructure gap, with motorists saying the state is yet to get a CNG station. Commercial driver Aminu Suleiman said the programme could ease the hardship caused by rising petrol prices but expressed concern about the delay.

“This is a welcome development as it will ease the hardship experienced in the country because of fuel price increase,” he said. “I hope it is not a fake promise because we have been hearing about the CNG but we, the people of Zamfara State, have never seen it.”

The Zamfara State Government said plans were underway to establish CNG facilities in Gusau and other parts of the state.

In Kwara, the level of vehicle conversion also remains low. The Chairman of the Road Transport Employers Association of Nigeria in the state, Abdulrasheed Onikijipa, said only about 100 commercial vehicles belonging to union members had been converted.

“The CNG vehicles that have been converted so far among our members in Kwara State are around 100. The reason is that the vehicle owners are running from it because they don’t have belief in it,” he said. “Most of them complain that it damages their vehicles. That is why they don’t key into it as expected.”

Onikijipa also said transport unions had not been adequately consulted. “There has been no consultation from the government, especially at the state level, with our unions. We are just seeing it on the pages of the newspaper,” he said.

Kwara has two major CNG refuelling stations in Ilorin. A CNG-powered commercial tricycle operator, Abdulmalik Idris, said he had not experienced long queues because relatively few vehicles were using the fuel.

In Borno State, transport operators said safety concerns and the cost of gas were discouraging some vehicle owners from embracing CNG. A member of the National Union of Road Transport Workers identified as Sani said some drivers were still worried about possible vehicle explosions.

“We have been sensitised about it (CNG conversion), but to be sincere, a good number of us are still scared that it could lead to car explosions,” he said.

Another executive of the association said rising gas prices were also affecting the willingness of operators to convert their vehicles.

However, Maiduguri already has hundreds of government-owned electric vehicles conveying passengers at fares of between N50 and N100, with charging facilities available within the metropolis.

In Benue, the government said it was preparing the ground for CNG adoption through a three-day awareness campaign. The Commissioner for Transport and Energy, Dr Joseph Ter, said he had converted his official vehicle to CNG to demonstrate support for the programme.

“As soon as we finish the awareness, we are going to swing into action with the conversion. I have already converted my own vehicle to show leadership by example,” he said.

Nasarawa State said it was planning to establish CNG bi-fuel conversion centres in each of its three senatorial zones. The Senior Special Assistant to Governor Abdullahi Sule on Public Affairs, Peter Ahemba, said 50 auto-technicians had been trained on CNG conversion.

“The Nasarawa State government is committed to building conversion centres so that the trained auto-technicians will not only be able to make their own impacts but train other people there. Based on the current needs of our people, we are going to establish these centres, one each in the three senatorial zones,” he said.

Edo State is also preparing to deploy more CNG buses, with the Commissioner for Information and Strategy, Kassim Afegbua, saying more than 50 52-seater buses would be launched in October.

“We are also launching our own CNG next month with over 50 52-seater CNG buses. It will be distributed according to commuter strength across the three senatorial districts. Once the passengers have the option of cheaper rates from the CNG, other transporters will be forced to reduce their fares,” he said.

A transport union official in the state, however, said commercial operators continued to face high maintenance costs and queues at CNG stations.

“Those buses that also run on gas have to queue for hours or days to buy the product. Those are the factors leading to high fares, and hopefully the government can address them,” the official said.

Kano State said it was ready to collaborate with the Federal Government on CNG-powered mass transit. The Commissioner for Transport, Alhaji Haruna Isah Dederi, said the state would make CNG buses available for interstate and urban mass transit.

See also  Actress Eniola Badmus threatens lawsuit over prostitution allegation, see details

“The Kano State government in collaboration with the Federal Government is vigorously pursuing the programme with a view to reducing transport fares,” he said.

The state has also procured 500 electric tricycles and introduced plans for a Rapid Bus Transit programme aimed at reducing fares within the metropolitan area.

In Bayelsa, transport operators said they were willing to adopt CNG but wanted the government to address the cost of conversion and availability of stations.

Ebi Patrick said, “We are interested in the CNG programme because fuel is one of the biggest challenges facing transport operators. But converting a vehicle is not something every driver can afford immediately.”

Another operator, Akpagra Michael, said CNG could lower fares if it remained affordable and readily available.

“If CNG is genuinely cheaper than petrol and it is readily available, there is no reason why transport fares should not come down. But the government must also consider other expenses such as spare parts, maintenance, vehicle financing and levies,” he said.

In Ogun State, the government said it was engaging stakeholders on the implementation of the CNG initiative while also working on electric vehicles.

The Special Adviser to Governor Dapo Abiodun on Information and Strategy, Kayode Akinmade, said the state was working with relevant stakeholders to establish a framework for cleaner and more affordable transportation.

In Rivers State, the government said it would return palliative buses to the roads from October, with additional buses expected to transport civil servants and other commuters free of charge.

The Permanent Secretary, Rivers State Ministry of Transport, Dr Vera Ndidi Sam-Dike, said the buses had previously operated on routes across the state but were suspended as a result of renovation at the state secretariat.

“However, from October we should have the buses back on the road. In fact, we will bring out more buses, those ones that take civil servants. Then, apart from civil servants, there were some of the buses that were carrying commuters free of charge.

“They will be on the road as well from next month. In fact, we will bring out all the buses. These buses will be playing several routes across the state. We are sure it will go a long way to help both civil servants and the rest of our people,” she said.

The state, however, had yet to fully implement the CNG initiative.

Infrastructural investment

Beyond the states, the Federal Government has continued to invest in CNG infrastructure. In May, President Tinubu commissioned four CNG projects supported by the Midstream and Downstream Gas Infrastructure Fund in Lagos, Abuja and Owerri.

The government has also introduced financing arrangements aimed at helping motorists and commercial operators spread the cost of vehicle conversion rather than paying the full amount upfront.

The President has pointed to examples from states where CNG and alternative-energy transport have already reduced fares. According to the State House, Borno has CNG and electric transport services charging between N50 and N100 on routes where commercial operators charge N300 to N600, while CNG buses in Oyo initially reduced the Lagos-Ibadan fare from about N8,000 to N3,200. Adamawa recorded fare reductions of up to 50 per cent, while Enugu reduced the Enugu-Nsukka fare from N2,500 to N1,500.

The figures demonstrate the potential of cheaper energy to reduce transport costs, but the reports from commercial operators across the country show that lower fuel prices alone may not immediately translate into lower fares.

For operators, the cost of vehicle conversion, access to refuelling stations, queues, spare parts, maintenance, financing and road conditions all influence the cost of running commercial vehicles.

The challenge, therefore, is moving beyond isolated examples of subsidised transport to a sufficiently broad CNG network that can support commercial operators on urban and inter-state routes.

For commuters, the difference is already visible in places where governments have deployed subsidised buses, but in states without sufficient CNG infrastructure, petrol remains the dominant fuel for commercial transportation.

With October 1 approaching, the rollout is consequently entering a critical phase. The Federal Government says the infrastructure is expanding and has urged states to accelerate implementation, while transport operators are demanding that stations and conversion facilities be made available before they can be expected to pass CNG savings on to passengers.

As Othman put it, “The only problem is the queue.” But across many states, the reports suggest that the challenge is broader: getting enough vehicles converted, ensuring reliable access to CNG, and making sure the savings eventually reach commuters through lower fares.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

NAFDAC destroys N8bn products, targets sachet alcohol in N’Central

Published

on

The National Agency for Food and Drug Administration and Control (NAFDAC) has confiscated and destroyed unwholesome, banned, fake and adulterated products worth more than N8 billion in the North-Central states.

Speaking during the destruction ceremony on Thursday in Lafia, the Nasarawa State capital, the Director-General of NAFDAC, Prof. Mojisola Adeyeye, said the products were seized from manufacturing outfits, sales outlets, markets and motor parks across the zone.

The DG, who was represented by a Deputy Director of NAFDAC in the zone, Joseph Edor, said most of the confiscated products were banned alcoholic beverages in small volumes of less than 200 ml (20 cl).

According to her, NAFDAC was established by Decree No. 19 of 1993, as amended, with the mandate to protect and promote public health by ensuring that only quality, efficacious and regulated products are manufactured, imported, distributed and sold in Nigeria.

She explained that the agency banned alcoholic beverages in sachets and glass bottles of less than 200ml due to their availability, affordability and portability, which have made them easily abused by youths and underage schoolchildren.

“Research has shown that early exposure to alcohol affects the brain and other vital organs such as the liver and kidneys.

“It stymies the brain, resulting in mental retardation, brain damage, poor performance of pupils in school, low productivity and several types of illnesses,” she said.

The DG said the ban and subsequent raids were based on these abuses, addiction and adverse health effects, while other seized items included expired, fake and unwholesome food, drugs and cosmetics.

“It is in the course of carrying out these activities that this heap of unwholesome, banned, fake and adulterated products worth about eight billion naira was confiscated from manufacturing outfits, sales outlets, markets and motor parks.

See also  Tinubu, US AFRICOM chief hold security talks in Abuja

“The bulk of the products in that pile are predominantly banned alcoholic beverages in low volumes of less than 200ml (20cl),” she emphasised.

The Director-General further commended other law enforcement agencies, sister agencies and stakeholders for their continuous collaboration, especially in intelligence sharing and security cover during operations.

Also speaking at the event, the Nasarawa State Coordinator of NAFDAC, Dr Gyani Stephen, explained that the exercise was not targeted at hurting people but was intended to save lives.

He advised those in the habit of selling fake and banned products to desist or be ready to face the full wrath of the law, warning that the agency would come after them if they did not change their ways.

In his goodwill message, the Nasarawa State Commander of the National Drug Law Enforcement Agency, Daniel Saidu, represented by Yakubu Awoh, commended NAFDAC for saving lives through the regular seizure and destruction of expired and fake drugs.

He explained that if these dangerous products were allowed into the markets, they could have destroyed millions of lives and affected the mental health of many others.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

WHATSAPP CHANNEL

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

Seven modular refineries to begin operations in 2027, read details

Published

on

Nigeria’s modular refining sector is expected to expand next year, with seven new refineries projected to commence operations with a combined capacity of 83,000 barrels per day, according to Argus Media’s George Maher-Bonnett.

Maher-Bonnett disclosed this in Lagos on Wednesday during a presentation at the OTL Africa Downstream conference, where he highlighted the changing dynamics of Nigeria’s petroleum products market amid rising local refining capacity and declining fuel demand.

In his presentation, titled ‘African Energy Outlook’, Maher-Bonnett said four modular refineries operated in Nigeria in September, with a combined capacity of 32,000 barrels per day.

“Four modular refineries operating in September, total 32,000 b/d capacity,” he said.

He added, “Seven new modular refineries to start next year“ with a total of 83,000 barrels per capacity.

The projected additions would represent more than two and a half times the combined capacity of the four modular refineries operating in September, potentially increasing the contribution of smaller refining facilities to Nigeria’s domestic petroleum products supply.

However, the presentation did not identify the seven proposed refineries, their owners or locations, or provide individual capacity figures and commissioning schedules.

Maher-Bonnett also highlighted the growing role of the Dangote Petroleum Refinery in improving Nigeria’s self-sufficiency in petroleum products, despite a decline in fuel demand during the year.

“Nigerian fuels demand is down this year,” the presentation stated, attributing the development to “higher flat prices.”

He added self-sufficiency is improving with Dangote ramp-up, projecting that modular refineries would play a growing role.

The presentation linked the decline in demand to higher prices and noted that the only government intervention during the period covered was an NNPC price reduction.

See also  World Bank flags ‘hidden spending system’ diverting over N34.53tn of Nigeria’s revenue

“No government interventions, besides NNPC price cut this month,” it stated.

The expected expansion of modular refining capacity comes as Nigeria’s petroleum products market adjusts to increased domestic production and changing international trade flows.

Maher-Bonnett said the Dangote refinery is operating at a high rate, with steady petrol output, reducing the attractiveness of importing some petroleum products from Europe into West Africa.

“Dangote’s 700,000 bpd Lekki refinery is running hard, gasoline output is steady,” the presentation stated.

It also highlighted Ghana’s growing refining capacity, noting that the 45,000-barrel-per-day Tema refinery is ramping up production and improving the country’s self-sufficiency.

According to the presentation, the economics of shipping petroleum products from Europe to West Africa and from Europe to the United States has weakened, with freight costs further affecting the competitiveness of the routes.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

WHATSAPP CHANNEL

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

Falana tasks Senate on recovery of $123bn, N66bn oil funds, read details

Published

on

Human rights lawyer, Femi Falana, has asked the National Assembly to compel the recovery of $123.17bn in alleged outstanding oil royalties, taxes and dividends, alongside N66.4bn, from the Nigerian National Petroleum Company Limited and other oil and gas companies.

In a letter dated 28 October, 2026, and titled ‘Request to Recover Dividends, Taxes and Royalties Worth $123.17bn and N66.4bn from NNPC and Other Companies and Remit Same to the Federation Account’, Falana urged the National Assembly to ensure that the alleged outstanding revenues were recovered and remitted to the federation account.

He warned that he would institute legal proceedings at the Federal High Court if the authorities failed to initiate measures to recover the funds within 14 days of receiving the letter.

In an acknowledged copy of the letter made available to The PUNCH on Thursday, the senior advocate said the outstanding revenues covered several categories, including $62bn in unpaid oil royalties, $23.1bn in alleged unremitted dividends from Nigeria LNG Limited, $6.071bn in outstanding industry revenues, and claims relating to stolen crude oil and refinery rehabilitation contracts.

The letter also cited a Supreme Court consent judgment delivered on 20 October, 2018, which it said directed the Federal Government to collect outstanding royalties accrued over 18 years under the Deep Offshore and Inland Basin Production Sharing Contracts Act.

According to Falana, the governments of Akwa Ibom, Bayelsa and Rivers states had approached the Supreme Court to compel the Federal Government to enforce the law, which provided for an upward review of royalties when international crude oil prices exceeded $20 per barrel.

He said a committee constituted by the Office of the Attorney-General of the Federation subsequently determined that $62bn in royalties had not been collected from international oil companies.

Falana added that Akwa Ibom and Rivers states later obtained a Federal High Court judgment for a combined $3.3bn, while Bayelsa State secured a separate judgment for $951m over their alleged entitlements from the outstanding royalties.

See also  Petrol soars above N1,000/ltr as Tinubu okays 15% import tariff

He said the Federal Government had yet to comply with the judgments.

The lawyer also called for the recovery of $29bn linked to alleged crude oil theft and undeclared exports, citing investigations by the Nigerian Maritime Administration and Safety Agency and the House of Representatives.

He said lawyers engaged by NIMASA discovered that about 60.2 million barrels of crude oil, valued at $12.7bn, allegedly stolen from Nigeria, were discharged at the Port of Philadelphia in the United States between 2011 and 2014.

According to the letter, the lawyers submitted their findings to the Office of the Attorney-General after which they filed nine civil cases at the Federal High Court in Abuja and Lagos to recover the value of the alleged stolen crude oil and liquefied gas.

Falana further cited a 2016 House of Representatives ad hoc committee investigation, which he said found that $17bn worth of crude oil and liquefied natural gas had been exported from Nigeria without proper records.

He said the committee found that the crude oil was discharged at the ports of Houston and Lake Charles in the United States.

He urged the National Assembly to direct the Economic and Financial Crimes Commission to pursue the recovery of the funds from the companies allegedly involved.

On the NLNG dividends, Falana alleged that NNPC had failed to remit $23.1bn due to the Federal Government from its 49 per cent shareholding in NLNG.

He explained that NLNG, established in 1989, had paid more than $47bn in dividends to its shareholders over 26 years, with the Federal Government’s share paid through NNPC.

The other shareholders listed in the letter are Shell, with 25.6 per cent; TotalEnergies, 15 per cent; and Eni International, 10.4 per cent.

Falana argued that the dividends received by NNPC on behalf of the Federal Government should have been transferred to the Federation Account in accordance with Section 162 of the 1999 Constitution, as amended.

See also  Amazon to cut 16,000 jobs worldwide

He added that resolutions of the Senate and the House of Representatives calling for the remittance of the funds had allegedly been ignored.

The senior advocate also called for the recovery of $6.071bn and N66.4bn in outstanding revenues owed by oil and gas companies, citing the Nigerian Extractive Industries Transparency Initiative’s 2022/2023 Independent Oil and Gas Industry Report.

According to him, NEITI disclosed on 27 September, 2024, that the outstanding collectible revenues due to the Federal Government as of June 2024 stood at the stated amounts.

He said copies of the report were forwarded to both chambers of the National Assembly in November 2024 in line with the provisions of the NEITI Act.

Falana urged lawmakers to support NEITI in recovering the outstanding revenues without further delay.

The letter also questioned the outcome of the rehabilitation of the Port Harcourt, Warri and Kaduna refineries, for which the Federal Executive Council approved contracts totalling about $2.98bn in 2021.

It said the government approved $1.5bn for the rehabilitation of the Port Harcourt refineries in April 2021 and another $1.48bn for the Warri and Kaduna refineries in August of the same year.

Falana argued that NNPC announced in December 2024 that the Port Harcourt and Warri refineries had been substantially completed, while work on the Kaduna refinery was almost finished.

However, he cited NNPC’s subsequent announcement that the Warri refinery ceased operations on 25 January, 2025, following safety issues involving its crude distillation unit main heater. He also referred to the shutdown of the Port Harcourt refineries for planned maintenance in May 2025.

See also  World Bank flags ‘hidden spending system’ diverting over N34.53tn of Nigeria’s revenue

He argued that the contractors had breached the terms of the rehabilitation agreements and called for the recovery of the contract sums.

“In view of the foregoing, we are compelled to request the Office of the Attorney-General to recover the total sum of $123.17bn and N66.4bn owed the Government of the Federation by the Nigerian National Petroleum Corporation Limited, and some oil and gas companies operating in Nigeria,” the letter stated.

Falana said recovering the funds would reduce the Federal Government’s dependence on external borrowing and provide additional revenue for the federation and the states.

He warned that failure to begin recovery measures within 14 days would prompt legal action.

“If you fail to initiate legal measures for the recovery of the aforesaid huge funds belonging to the Government of the Federation within 14 days of the receipt of this letter, we shall not hesitate to file the necessary processes in the Federal High Court with a view to compelling you to discharge the duty of your office,” he wrote.

Falana also defended his firm’s standing to pursue the matter, citing its involvement in drafting and submitting a bill to amend the Deep Offshore and Inland Basin Production Sharing Contracts Act in 2017.

He noted that the bill was adopted and sponsored by a senator, subsequently passing first reading in the Senate before the dissolution of the Eighth National Assembly. According to him, the Ninth National Assembly subsequently adopted and passed the amendment.

He recalled that the then President of the Senate, Ahmad Lawan, had said the amendment would increase the country’s revenue by at least $1.5bn annually.

Source: punchng.com

FOLLOW US ON:

FACEBOOK

WHATSAPP CHANNEL

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Trending