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Supreme Court orders FG to commence recovery of lost oil revenues

FG on a mission to recover all lost revenues since 2003

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Nigeria Oil revenue, CBN, Crude Oil, Nigeria's crude oil sale in Q3 2018

The Federal Government has been ordered to immediately commence steps to recover all revenues lost to oil exploring and exploiting companies due to wrong profit sharing formula termed as the Production Sharing Contracts since August 2003. The order was made by the Supreme Court on Wednesday, October 17, 2018.

A seven-man panel of the apex court led by the Chief Justice of Nigeria, Justice Walter Onnoghen, made the order in a consent judgment in a suit filed by three states, Rivers, Bayelsa, and Akwa Ibom,  against the Federal Government in 2016.

The states, through their various Attorneys General and the Federal Government, through the Attorney General of the Federation, had in April 2018, filed the terms of settlement which the apex court adopted as its judgment.

The terms of the settlement were signed by the Attorneys General of the three states, Emmanuel Aguma (SAN) for Rivers, Kemasuode Wogu for Bayelsa, and Uwemedimo Nwoko for Akwa Ibom, as well as the lead counsel for the AGF, Lucius Nwosu. The Permanent Secretary in the Federal Ministry of Justice, Dayo Apata, signed as the witness.

By virtue of the agreement between the three states and the Federal Government leading to the consent judgment of the apex court, the AGF, Abubakar Malami (SAN), is to work with the three states to “immediately set up a body and the necessary mechanism for recovery” of all the lost revenues since August 2003.

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The mechanism is to be put in place by the AGF within 90 days.

How FG recorded revenue losses from oil merchants

The three states which had jointly filed the suit marked SC.964/2016, had contended that the Federal Government had been short-changed on its supposed shares of estimated earnings of $1.149 trillion under the Production Sharing Contracts for the period between 2003 and 2015.

According to them, the huge loss suffered by the Federal Government is due to the failure of the Minister of Petroleum Resources for over 15 years to kick-start the re-adjustment of the sharing formula (the PSC) of 60 per cent share of oil profits to the Federal Government and 40 per cent to the oil companies.

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They argued that the Federal Government had suffered huge losses under the PSC because of non-compliance with Section 16(1) of the Deep Offshore and Inland Basin Production Sharing Contracts Act which was said to have come into effect since January 1, 1993.

The plaintiffs faulted Section 8(1)(f) of the Production Sharing Contracts between the Federal Government and the oil companies, which makes provision for the 60 to 40 per cent sharing agreement.

They stated that, under the Deep Offshore and Inland Basin Production Sharing Contracts Act, there ought to be an upward re-adjustment of Federal Government’s share of oil profit “in a manner as to become economically beneficial to the Federal Government” whenever the price of crude oil exceeded $20 per barrel.

The plaintiffs, therefore, argued that the PSC which provides for the current sharing formula between the Federal Government and the oil companies could no longer be valid because the oil prices had since overshot the $20 per barrel.

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Famuyiwa Damilare is a trained journalist. He holds a Higher National Diploma (HND) in Mass Communication at the prestigious Nigerian Institute of Journalism (NIJ). Damilare is an innovative and transformational leader with broad-based expertise in journalism and media practice at large. He has explored his proven ability in the areas of reporting, curating and generating contents, creatively establishing social media engagements, and mobile editing of videos. It is safe to say he’s a multimedia journalist.

1 Comment

1 Comment

  1. OBI KINGSLEY

    October 18, 2018 at 1:28 pm

    The recent government’s are idiots is it now to recover lost oil?

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Coronavirus

COVID-19 Update in Nigeria

On the 27th of October 2020, 113 new confirmed cases and 3 deaths were recorded in Nigeria

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 62,224 confirmed cases.

On the 27th of October 2020, 113 new confirmed cases and 3 deaths were recorded in Nigeria, having carried out a total daily test of 2,326 samples across the country.

To date, 62,224 cases have been confirmed, 57,916 cases have been discharged and 1,135 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 614,480 tests have been carried out as of October 27th, 2020 compared to 612,154 tests a day earlier.

COVID-19 Case Updates- 27th October 2020,

  • Total Number of Cases – 62,224
  • Total Number Discharged – 57,916
  • Total Deaths – 1,1135
  • Total Tests Carried out – 614,480

According to the NCDC, the 113 new cases were reported from 12 states- Lagos (51), FCT (15), Plateau (11), Kaduna (8), Oyo (8), Rivers (8), Ogun (4), Edo (2), Imo (2), Kwara (2), Delta (1), Kano (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 20,935, followed by Abuja (6,008), Plateau (3,614), Oyo (3,433), Rivers (2,781), Edo (2,654), Kaduna (2,625), Ogun (2,014), Delta (1,813), Kano (1,743), Ondo (1,666), Enugu (1,314),  Kwara (1,069), Ebonyi (1,049), Katsina (952), Osun (923), Abia (898), Gombe (883).  Borno (745), and Bauchi (710).

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Imo State has recorded 616 cases, Benue (486), Nasarawa (479), Bayelsa (403),  Ekiti (332), Jigawa (325), Akwa Ibom (295), Anambra (277), Niger (274), Adamawa (257), Sokoto (165), Taraba (140), Kebbi (93), Cross River (87), Yobe (82), Zamfara (79), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

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The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

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ENDSARS

Oyo sets up N500 Million fund each for youth entrepreneurs, compensation for victims of police brutality

Governor Seyi Makinde plans to disburse N500 million fund to youth entrepreneurs in Oyo state.

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Oyo sets up N500 Million fund each for youth entrepreneurs, compensation for victims of police brutality, #EndSARS: State Governors should have necessary powers to control the Police Force - Seyi Makinde, Seyi Makinde Proposes N3 Billion plan for water supply

Oyo State Government has directed that a N500 million MSME fund be set up to fund youth entrepreneurs in the State with bright business ideas

This was disclosed by Governor Seyi Makinde while speaking at the Post-Protest Meeting with Traditional Rulers and other Stakeholders, held at Agodi, Ibadan.
According to the Governor, the fund will provide further employment and improve the economic landscape in Oyo State.
The Governor also approved N500 million as compensation to victims of police brutality and injustice. This fund is to encourage anyone who has suffered any form of injustice in the past or as a result of the #EndSARS protests.
He said, “I have directed that a N500 Million MSME fund be set up. This fund will be disbursed to youths who have bright entrepreneurial ideas that will provide further employment and improve the economic landscape in Oyo State.”
Let me also state that we have set up an initial Five Hundred Million Naira (N500million) Compensation Fund for victims of injustice.
“So, I encourage everyone who has suffered any form of injustice in the past or as a result of the #EndSARS protests, to please take advantage of the platforms we have provided to log their cases.
“We have an email service and a direct reporting portal on the Oyo State Government website. A judicial panel for Oyo State will be inaugurated in the next one week to look into cases of injustice.”
He stated further, “We know that the protests have been a result of simmering anger among the youths. We are aware of the economic situation, especially the reduced income of many due to the COVID-19 pandemic and also the general unemployment situation in the country. Let me reassure you that we will continue to prioritize actions that will positively impact the youths.”

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ENDSARS

VP Osinbajo leads Committee to address unemployment, poverty among others

The National Economic Council (NEC) is ready to address the concerns of youths and Nigerians at large.

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VP Osinbajo leads Committee to address unemployment, poverty among others

After over four hours of deliberations at the emergency meeting of the National Economic Council (NEC), a Committee was set up to meet the needs and demands of Nigerian youths behind the #EndSARS protests. The head of the Committee is Vice President Yemi Osinbajo.

This information is contained in the circular issued by the National Economic Council and shared by Laolu Akande, the Senior Special Assistant-Media & Publicity to the Vice President.

READ: KPMG report blames FIRS, others over ₦8 trillion under-remittance into Federation accounts

According to Akande, the Joint Committee was consequently set up by Osinbajo, SAN, to work with State governments represented by the Governors of Ebonyi, Ondo, Niger, Delta, Borno and the Sokoto States to implement the resolutions of the emergency meeting.

The National Executive Council during the meeting affirmed an unequivocal belief and assurance that most members of the nation’s security personnel are law-abiding and are capable of restoring law and order in the country.

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READ: CBN to sanction exporters who default on export proceed number

What you should know

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The Joint Committee set-up by the NEC, to see to the implementation of the following frameworks and the given objectives:

• Framing of a new security and stability architecture for the country.

• A framework of engagement with the youths, civil society, and religious leaders, in a bid to promote national unity.

READ: 2021 Budget: Senate sets motion for budget defense, commences 2020 review

• A framework to engage with security agencies that will devolve more control to State governors who are the chief security officers of their states.

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• A framework for the Federal Government to provide compensation for those who have incurred losses in the last few weeks.

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• A social security framework for the youths and Nigerians to deal with the problem of unemployment and poverty in the country.

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